Latin America Gets Ready to Legislate Against Business Corruption

Forensic & Litigation Consulting

June 9, 2017

Latin America

Latin America has taken an important step forward in the fight against corruption in the business environment, and in the economy in general, by enacting specific laws applied to those private companies whose corruption practices might involve national and foreign public officials.

Examples of such practices are those cited below:

  • Promising, offering, or giving an improper advantage, directly or indirectly, to a national or foreign public official.
  • Committing fraud during a public tendering procedure.
  • Eliminating a proposal from a tender, etc.
  • Financing, sponsoring or subsidizing unlawful acts.
  • Obstructing an investigation on governmental entities or officials.
  • Creating entities in a fraudulent manner in order to participate in public tenders.

In this sense, Chile, by means of the Law 20.393, and Brazil, with Law 12.846, has generated a strong regulation that sets the course for other Latin American legislations to follow. Because of this example, in countries such as Argentina, a draft law to be issued in June 2017, is being prepared, regarding legal persons’ criminal responsibility.

The model that Chile has implemented seems to be of more interest due to its conception of a state that rewards those companies that implement internal controls to detect acts of corruption and against public administration.

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