Mexico has recalled its ambassador to the Paris-based Organisation for Economic Co-operation and Development on suspicion of misusing embassy funds.
Foreign Minister Luis Ernesto Derbez said Carlos Flores Alcocer was removed from his OECD post pending an audit.
He is accused of having spent several hundred thousand dollars of Mexican Government money to buy luxury goods.
The Mexican Government is trying to persuade its embassies to cut down on unnecessary spending.
Mr Derbez said the ambassador had been relieved of his duties because it was necessary to resolve the issue of the allegations against him.
The foreign minister said the OECD was an important organisation for Mexico and it was impossible for Mr Flores Alcocer to continue to do his job while he was the subject of such attention.
However, he stressed that there was no proof as yet that Mr Flores Alcocer was guilty of excessive spending.
He said the audit would be completed in a week or two.
The decision to remove Mr Flores Alcocer follows reports in Mexican newspapers alleging that in five months, he spent more than $1m on four Volvo cars, a house and items for the home.
Mr Flores Alcocer's monthly salary is $15,000.