In depth
General Law for the Prevention, Investigation, and Punishment of Crimes Related to Extortion (LGPISDME)
The objectives of this law are the prevention, investigation, punishment, and enforcement of criminal actions against the crime of extortion and other related offenses. Likewise, the LGPISDME: (i) allocates powers and establishes coordination among authorities, (ii) standardizes the criminal offense, its penalties, and its aggravating factors nationwide, (iii) sets uniform rules and procedures for the investigation, prosecution, and punishment of cases related to the commission of the crime, and (iv) promotes the creation of comprehensive actions, programs, and policies on the matter.
The LGPISDME recognizes that the crime of extortion can cause economic, moral, physical, or psychological harm to victims and defines that the offense is committed by anyone who “(...) without legal right, compels another to give, do, refrain from doing, or tolerate something, with the aim of obtaining a benefit or profit for themselves or for a third-party, or to cause someone economic, moral, physical, or psychological harm (...)”.
Under the new law, penalties for the crime of extortion are up to 25 years of imprisonment and up to 500 times the daily value of the Unit of Measurement and Update (UMA) (approximately MXN 56,570), without considering the aggravating factors of the crime. However, the LGPISDME includes aggravating circumstances such as: (i) when committed as part of “protection fee” (derecho de piso) schemes, (ii) when the victim is forced to contract, obtain, or acquire goods or services from for its business activity, (iii) when committed against migrants, minors, or persons over 60 years old, (iv) when armed individuals are involved, or (v) when it affects the economy of a federal entity, etc.
The LGPISDME also provides penalties for those who assist or cooperate in the commission of the crime, as well as for anyone who discloses confidential information or obstructs its reporting or investigation.
Federal Criminal Code (CPF)
CPF was amended to include the crime of extortion in the list of offenses that can be committed by legal entities and repealed Article 390, which previously regulated this crime under this statute.
National Code of Criminal Procedure (CNPP)
As part of these reforms, the CNPP added extortion to the list of crimes that warrant mandatory pretrial detention.
Federal Law Against Organized Crime (LFDO)
The LFDO now provides that if the commission of extortion is attributed to members of organized crime, the offense may be investigated by federal authorities according to the terms of the LFDO.
National Law on Asset Forfeiture (LNED)
The amendment to the LNED establishes that assets forfeiture may be ordered on property used as an instrument, object, or proceeding of the crime of extortion.
Organic Law of the Federal Judiciary (LOPJF)
According to the reforms to the LGPISDME, private communications may be intercepted for the investigation of extortion-related crimes.
Based on these new provisions, we recommend evaluating local operations for any extortion threats that may be present and that threaten your company's interests, implementing internal policies and procedures to establish immediate actions to address this crime, and thus collaborating in the fight against extortion in Mexico.
For legal advice on a specific matter, please contact the Baker McKenzie team, who will be happy to assist you.
