Data Protection Obligations for Foreign Investors in Mexico

Foreign investors operating in Mexico must comply with the country’s data privacy laws, primarily governed by the Federal Law on the Protection of Personal Data Held by Private Parties (LFPDPPP). This law is enforced by the National Institute for Transparency, Access to Information, and Protection of Personal Data (INAI), which oversees compliance and imposes sanctions for violations.

Key Compliance Areas

1. Legal Requirements

• Transparent and accessible privacy notices.

• Informed consent for personal data processing.

• Respect ARCO rights: Access, Rectification, Cancellation, and Opposition.

2. Data Controller Obligations

• Guarantee confidentiality and data security.

• Prevent unauthorized access, loss, or misuse.

3. Cross-Border Transfers

• Ensure equivalent protection in destination countries.

• Use binding contractual clauses when necessary.

Sensitive Personal Data

• Health, biometric, and financial information.

• Requires explicit written consent.

• Subject to stricter security measures.

  
  

Data Security & Breach Notification

• Implement administrative, physical, and technical safeguards.

• Notify affected individuals and INAI in case of breaches.

Sanctions for Non-Compliance

• Fines and reputational damage.

• Potential criminal liability.

Due Diligence Measures

• Conduct privacy impact assessments.

• Work with local legal counsel.

March 2025 Legal Reform: Key Changes

• Enhanced ARCO rights with simplified procedures.

• New standards for digital consent and notifications.

• Mandatory risk assessments for data processing.

• Stricter breach protocols.

• Increased enforcement and penalties.

Impact for Foreign Entrepreneurs

• Applies to any entity handling personal data in Mexico.

• Privacy notices are mandatory.

• Greater regulatory scrutiny by INAI.

How ARRANGOIZ & ASOCIADOS Business Counsel Can Help

At ARRANGOIZ & ASOCIADOS Business Counsel, we are prepared to assist foreign investors with comprehensive compliance solutions for data protection regulations in Mexico. Contact us for expert guidance and support.