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Argentina passes new anti-corruption law
Argentina’s new anti-corruption regime aligns with international standards.
Argentina’s new anti-corruption law came into force on 1 March 2018 creating a criminal liability regime for legal entities. This is the first time that companies doing business in Argentina can be held liable for corrupt or criminal activities. The law aligns with the legislation in many other nations aimed at combating corporate corruption.
Key features of Argentina's new legislation include the following.
- Companies are criminally liable for corrupt acts committed by their owners, directors, executives, employees and third parties acting on their behalf, if the crime benefits the company.
- A company's criminal liability is treated separately from the liability of the individual who committed the corrupt act. A company can be convicted whether or not the individual responsible for the action is also convicted.
- Penalties are potentially severe and can include fines of between two and five times the benefits gained, total or partial suspension of the company's activities or even compulsory dissolution.
- Companies can avoid prosecution if they voluntarily disclose any corrupt activity, and have implemented a compliance programme, which as a minimum includes: a code of conduct, including policies and procedures for public procurement for all staff; specific rules to prevent unlawful acts in tenders, bidding processes or administrative contracts; and periodic training on the compliance programme.
Companies doing business in Argentina will need to make sure their compliance efforts are aligned with the new regime.
For more information, contact:
Daniel Abelovich
Estabe, Argentina
T: +54 1143 128 525
E: dabelovich@estabe.com.ar
W: www.estabe.com.ar
