Page 17 - CORRUPTION LATAM

MONTT GROUP MAGAZINE - 2024
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c) Concussion provided for by article 268 of the Penal Code.
d) Illicit enrichment of officials and employees, provided for by articles 268.1 and 268.2 of the Penal Code.
e) Aggravated false balances and reports, provided for by article 300 bis of the Penal Code.
Subjects reached
The law applies to all private legal entities, both national and foreign, that have activity in Argentina. State companies, non-state public entities and international organizations are excluded.
Sanctions
The sanctions that may be imposed on legal entities are varied and may be cumulative. They include:
-Financial fines (between two and five times the improper profit obtained or that could have been obtained).
-Total or partial suspension of activities (for a period of up to ten years).
-Suspension from participating in public contests or tenders (for a period of up to ten years). -Dissolution and liquidation of the legal entity when it has been created for the sole purpose of the commission of the crime.
-Loss or suspension of state benefits. -Publication of an extract of the conviction at the expense of the legal entity.
integrity programs
One of the most notable aspects of Law No 27,401 is the promotion of integrity and compliance programs within legal entities. The existence of an integrity program can mitigate or even exempt the entity from criminal liability. An integrity program must include:
- A code of ethics or conduct.
- Specific integrity policies to prevent crimes in interactions with the sector public.
- Periodic training for employees and managers on the integrity program.
disclaimer
The legal entity may be exempt from criminal liability if it meets the following requirements: -The existence and effective implementation of an integrity program at the time of the events. -The spontaneous reporting of the crime detected
as a consequence of the activity of the integration program
-The return of the undue benefit obtained. -Cooperation with Justice
The law also establishes the possibility of effective collaboration agreements between legal entities and judicial authorities. These agreements may imply the reduction of sanctions in exchange for cooperation in the investigation and clarification of crimes.
implementation and control
The Anti-Corruption Office and other control entities have the function of supervising the implementation of integrity programs and compliance with the regulations established by Law No 27,401.
prescription of criminal action
As stated in article 5 of the law, criminal action regarding private legal entities expires six (6) years after the commission of the crime. To this end, the rules for suspension and interruption of criminal action provided for in the Penal Code are applicable.
Law No 27,401 represents significant progress in the fight against corruption and other economic crimes in Argentina. By establishing the criminal liability of legal entities, the aim is not only to punish illegal conduct, but also to promote a culture of integrity and compliance within the business environment. Companies must be proactive in implementing integrity programs to prevent crime and mitigate legal risks.
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