Argentina has become the latest Latin American country to enact laws making companies liable for crimes committed in Argentina and abroad, a move local lawyers say is a positive step towards an anti-corruption culture in the region. Argentina’s new corporate liability law was approved by the country’s chamber of deputies in a landslide vote on 8 November. The new bill means companies will face prosecution for crimes including bribery, as well as penalty fees and the potential to be barred from participating in public concessions for up to 10 years.
Discussing these developments with Latin Lawyer, RK&O partner Jeffrey Lehtman noted that "several countries in Latin America are passing new laws and forcing them much more aggressively. Argentina is the one which is closest to Brazil." He pointed out that Argentina is following the steps taken by Brazil where changes in anti-corruption legislation allowed the Car Wash probe to take place and led to the arrest of high-profile politicians and senior executives from companies and triggered a widespread drive against corruption. “Compliance practices are about to explode in the country and companies will need to pay attention to this new era,” Lehtman said.
Click here to read "Argentina targets corruption with corporate criminal liability law". (subscription required)
RK&O Client Alert: "The Argentine Compliance Revolution" (November 2017)