Country Reports on Terrorism 2008 - Mexico

Although no serious terrorist incidents targeting U.S. interests/personnel have occurred on or originated from Mexican territory, violence has risen to new levels and narcotraffickers have shown a willingness to use terrorist tactics. Incidents illustrating this include the September 15 independence day grenade attack in Morelia, which claimed at least seven lives and injured scores, as well as the killing and beheading of eight military soldiers in Guerrero in mid-December. Another like incident involved a U.S. target; on October 12, unknown persons fired gunshots and tossed an undetonated grenade at the U.S. Consulate in Monterrey. Although such attacks have raised the specter of domestic terrorism, Mexico primarily represents a terrorist transit threat and bilateral efforts focused squarely on minimizing that threat.

President Calderón's Administration has demonstrated an unprecedented commitment to address national security concerns. U.S. law enforcement agencies enjoyed a much-improved relationship with Mexican security institutions across the board. Mexico worked with the United States to secure critical infrastructure, combat terrorist financing, and enhance aviation, border, maritime, and transportation security. In October 2007, Mexico and the United States announced the Mérida Initiative. The U.S. government has pledged $1.4 billion over three years to the Government of Mexico to aid in their fight against criminal elements in their country. In June 2008, Congress approved $400 million for Mexico in support of the Merida Initiative, which provides funding for equipment, vetting, and training to support law enforcement operations. It also provides technical assistance for reform and oversight of security agencies. In addition to active support for law enforcement, there are parallel efforts in the areas of judicial reform, anti-corruption, and programs to encourage participation of civil society. The Mexican government's increased commitment to national security concerns has resulted in a significant increase in violence against high level Mexican government officials. The United States government has worked closely with the Mexican government to mitigate this threat.

Mexico continued to make steady progress in the area of counterterrorism with an emphasis on border security projects targeting the smuggling of aliens who raise terrorism concerns. The government worked to professionalize federal law enforcement, restructuring and strengthening institutions responsible for fighting organized crime, and developing tools under the framework of the Security and Prosperity Partnership (SPP) to better address national security threats.

The continued exploitation of smuggling channels traversing the U.S. Mexico border, and lack of enforcement along Mexico's border with Guatemala remained strategic concerns. In 2007, Mexico passed a law against human trafficking, which will aid in pursuing criminal proceedings against traffickers and smugglers operating in the country.

One setback in United States-Mexico counterterrorism cooperation was a change in detention procedures. In 2005 and 2006, Mexico's Immigration Service (INM) maintained a policy of housing all detained aliens who may raise terrorism concerns in their detention facility near Mexico City. In March 2007, however, the INM began releasing such detainees from their point of arrest, thus hindering information sharing and the USG's ability to track the movement of these aliens. This remained a problem in 2008.

Nevertheless, cooperation between the U.S. and Mexican governments has been strong overall. The two countries exchanged information and closely cooperated in targeting alien smugglers, particularly along Mexico's northern border. The Operation Against Smugglers (and Traffickers) Initiative on Safety and Security (OASISS), which allows Mexican and U.S. law enforcement officials to share real-time information regarding ongoing alien smuggling investigations, has been particularly effective. OASISS enhances the ability of both governments to prosecute alien smugglers and human traffickers. OASISS is currently operational in the United States in all four states along the southwest border and in most of Mexico's northern border states. The program provides a model for bilateral information sharing in a variety of law enforcement and security areas. An essential next step to expand OASISS to all of Mexico's northern border states is scheduled to be completed with FY-2008 Merida Initiative funding.

The U.S.-Mexico Border Security and Public Safety Working Group, formed in March 2006, has become another important tool for bilateral cooperation, establishing protocols enabling both governments to respond cooperatively at a local level to critical incidents and emergencies. The success of the pilot sites led to the expansion and formalization of the program. These protocols are now in place along the entire U.S.-Mexico border.

Mexico coordinated with the United States on the information sharing of air passenger data and the use of its Integrated System for Migratory Operations (SIOM). In addition, the Mexican and U.S. governments agreed to share, on a case-by-case basis, biometric data for comparison to the Integrated Automated Fingerprint Identification System (IAFIS).

The United States also developed a strong working relationship with the Financial Intelligence Unit of the Attorney General's Office (PGR) and its companion unit in the Mexican Treasury (Hacienda) in combating money laundering, terrorist financing, and narcotics trafficking.

In 2007, President Calderón signed into law legislation outlawing terrorist financing and associated money laundering. The new law established international terrorism and terrorist financing as serious criminal offenses, as called for in UN resolution 1373, and provides for up to 40-year prison sentences. The measure also incorporated several non-finance related provisions including jail sentences for individuals who cover up the identities of terrorists and for those who recruit people to commit terrorist acts. While it lacked some important provisions, such as asset forfeiture measures, the law was a significant step forward. Mexico's legislature continued working on justice reform legislation, which, if enacted, will offer law enforcement officials broader authorities (including asset forfeiture) to investigate and prosecute serious criminal cases, including terrorist activity. Despite the recent legislation, money laundering remained a significant problem in Mexico.

The Mexican Navy and Army continued to expand their counterterrorism capabilities. The Mexican Navy improved control over ports of entry by deploying a newly constituted infantry force. The Navy also worked to expand its still incomplete control over Mexico's vast maritime zone by better integrating radar, patrol craft, seagoing vessels, air platforms, and land-based platforms. These enhancements to Mexico's maritime air surveillance will allow the Navy to protect key national strategic facilities, including those related to oil production in the Bay of Campeche.