Scrutiny of Foreign Firm Payments in Mexico’s Energy Sector to Start in November

By Colby Adams

New rules for Mexico's energy sector will soon empower the country's tax supervisor to scrutinize international firms for potential violations of money-laundering and graft laws. The regulations, which take effect in November, require a newly created accounting office within the Tax Administration Services (SAT) to audit global energy firms contracted for oil production and development work and report suspicious transfers to the nation's financial intelligence unit. The foreign firms must register with SAT ahead of the audits by the new General Administration of Hydrocarbons, which will conduct onsite visits and review registration documents for accuracy, according to the rules finalized...