New Law On Corporate Criminal Liability

Author:Mr Fernando Goldaracena, Luis E. Dates and María (Vanina) Vanina Caniza
Profession:Baker & McKenzie
 
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The new Law on Corporate Criminal Liability for corruption offences is approved and now companies should take the appropriate measures in order to prevent and detect possible corruption crimes committed in their workplace

The National Congress finally approved the Law on Corporate Criminal Liability (the "Law") for corruption offenses.

Criminal offenses listed by the Law

Legal entities may be sanctioned for the following corruption offenses:

national and transnational bribery and influence peddling, (sections 258 and 258 bis Argentine Criminal Code - "ACC"); improper and unlawful transactions of public officials (section 265 ACC); illegal exaction committed by a public official (section 268 ACC); illicit enrichment of public officials and employees (section 268, subsections 1 and 2 ACC); and false balance sheets and reports (section 300 bis ACC). Criminal Liability of the Company

According to the Law, legal entities will be responsible for the offenses above detailed committed with their intervention, or in their name, interest or benefit.

The legal person will not be prosecuted if the individual acted in its exclusive benefit with no profit for the company.

The Law also establishes the responsibility of the companies originated from mergers, acquisitions, or any other reorganization process.

Statute of limitations

The Law provides for a special statute of limitations of 6 years to initiate the criminal action, regardless of the statute of limitations that each above-mentioned offenses establish for the authors and accomplices.

Penalties

The penalties provided by the Law for legal entities include fines of up to five times the improper benefit obtained; the suspension of commercial activities; special disqualification to participate in public tenders or bids; loss or suspension of governmental subventions, among others.

The penalties will be imposed considering their compliance program; the surveillance omission; amount of money involved; size and economic capacity of the company; and the spontaneous reporting of such offenses as a result of early detection or internal investigation.

If the company complies with (i) spontaneous denounce of the...

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