1. ACI’s 4th Latin American Summit on
Anti-Corruption
State of the Region
May 15, 2014
Matteson Ellis
Miller & Chevalier Chartered

2. 2
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A Period of Dynamic Shifts
Shifts in Risks
• Economic slowdown in Brazil
• Opening up of energy sector in Mexico
• Political chaos in Venezuela
• Economic expansion in Colombia & Peru
Shifts in Laws
• Brazil’s Clean Companies Act
• Mexico’s strengthened public procurement and AML laws
Shifts in Enforcement
•Cooperation among enforcement officials (Embraer, BizJet)
•FCPA reaches further (first action in Colombia; arrest of
Venezuelan official as bribe receiver)

3. 3
3
General Corruption Risks
in Latin American Countries
2012 Latin America Corruption Survey:
•Half of all respondents believe their company has lost
business to competitors making illicit payments in the region.
•Only 28% of respondents believe anti-corruption laws are
effective in the country where they work. Chile (78%) and
the United States (70%) are seen as having the most
effective laws.
• 44% of respondents consider corruption to be a “significant
obstacle” to doing business in the region
© 2013 Miller & Chevalier Chartered

4. 4
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General Corruption Risks
in Latin American Countries
2012 Latin America Corruption Survey:
• Most significant corruption challenges: Venezuela,
Argentina, Mexico, Bolivia
• Lowest overall government corruption: Chile, Uruguay, and
the United States
• Risks by area of government
 Mexico (Police, Municipal/Local)
 Venezuela (Judicial, Customs)
 Argentina (Executive Branch, Customs)
 Brazil (Legislative Branch, Police, Municipal/Local, Customs)
 Colombia (Legislative Branch, Municipal/Local)
© 2013 Miller & Chevalier Chartered

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Chile’s Ant-Corruption Legal Framework
• Corporate Criminal Liability
 Corporate Criminal Liability Law (Ley 20392, 2009)
 Applies to money laundering, financing of terrorism, bribery of
domestic and foreign public officials
 Strong will to join OECD Anti-Bribery Convention
• Compliance Program Certifications
 Explicit credit for corporate compliance
 A group of local firms are authorized to review and certify
companies’ compliance programs
• Conditional Suspensions of Proceedings
 Settlements with prosecutors, with courts setting conditions
 Industries Ceresita case
© 2013 Miller & Chevalier Chartered

6. 6
6
Matteson Ellis
Miller & Chevalier Chartered
mellis@milchev.com
(202) 626-1477
© 2013 Miller & Chevalier Chartered

7. Argentina
Update on Local Anti-Corruption Regulation
7
 Bill of Amendment of the Criminal Code
 Introduces criminal liability for Companies in matters of anti-corruption
 Requirement for Company Criminal Liability:
- Advantage for the Company
- Manifest lack of internal controls and supervision
 Sanctions:
- From fines to cancellation of the company’s charter

8. Argentina
Update on Local Anti-Corruption Regulation
8
 City of Buenos Aires: Ethics Law No. 4,895
 Allows public officials to receive:
- Protocol gifts received from governments or international organizations
- Gifts destined for professional and academic training provided by
governments, international organizations or educational institutions
- Courtesy gifts granted on occasion of events on which it is usual to grant
them.

9. Marval, O’Farell & Mairal
Buenos Aires - Argentina
Tel: (54-11) 4310-0100
www.marval.com.ar

10. 20142014
4th Latin American Summit on Anticorruption
Ana María Rodríguez Maldonado
What is happening in the Region?:
Colombia
10

11. 11
Colombia: Results as of 2013
Colombia is
still ranked 94
out of 176 in
the Corruption
Perception
Index –
Colombia
obtained 36
out of 100
points-
(obtained 34 in
2012)
(Transparency
International)
Colombia is
still
considered to
have relevant
risk in relation
to corruption
matters.
Transparency International
Colombia’s ranking on the ease of doing business
rose from 79 among the 175 economies included
in 2006 to 43 among the 189 included in 2014.
(Doing Business)

12. 12
Overview on the Region: The region over the years
• There are no significant changes, except for the improvement of
Brazil and Bolivia and the outstanding scores of Uruguay and
Chile.

13. Being a
part of the
OECD
New
legislation
to come
Further
advances
to
implement
policies
13
Colombia: What’s new in Anticorruption regulation?
Colombia is currently under the process
of being accepted as member of the
OECD.
The OECD issued 300
recommendations. Some have been
made in corruption related policies
(whistleblower, lobby).
• Pro-ethics registry.
• Legal entities liability.
• Harsh sanctions and fines.
• Whistleblower protection.
• Regulation of lobby.
• LA/FT policies for the real sector.
• Transparency Bill.
• Civil and government institutions
incorporated since the
Anticorruption Statute.

14. Guilds
against
corruption
Impacts of
the
International
Legislation
Need to
discuss
better
practices
14
Colombia: What’s new in Anticorruption regulation?
Colombian Guilds such as the
Infrastructure Chamber (CCI), the
Association of Chambers of Commerce
and the National Business Association
of Colombia (ANDI) have publicly
expressed their interest to implement
internal related policies.
• Globalization, FCPA and UK Bribery
act has changed the way business
are made in Colombia.
• New interest of corporations to
implement good practices.
• NPA, DPA and Declination Letters.
• Sector protection for those who whistle
blow.
• Implement new mechanisms to report
anonymously.
• High level reporting (Transparency
Agency).

15. Contact Us
info@bu.com.co
15
arodriguez@bu.com.co
aparra@bu.com.co

16. Anti-bribery
Law, Trends & Enforcement
Luis F. Ortiz
Partner
luisortiz@ocalawfirm.com
www.ocalawfirm.com 16

17. I.- Criminal Code:
Bribery: (active /passive bribery).
Extortion
Money Laundering
II.- Federal Anti-corruption Law for Public Procurement
(2012)
Only Federal
Not in States or Municipalities
Administrative (not criminal)
III.- AML Law Administrative (2012)
15 vulnerable activities (i.e. lending, lease, auto…)
IV.-National Anti-corruption Agency (@ senate)
V.- National Anti-Corruption Prosecutor's Office
www.ocalawfirm.com 17
1. LAW

18. 2.1 To describe concepts (i.e. “third parties”) such as criminal types of
conducts in the administrative law.
2.2. To use AML for future tax assessment purposes.
2.3 To make mandatory:
a) AML and Anti-corruption laws data protection friendly
b) Use of codes and corporate policy making
c) training
d) 1 person responsible (not compliance officer)
www.ocalawfirm.com 18
2. TRENDS

19. 3.1 Anti-corruption:
a) People:
+ Minor quantity actions
+ Great Activity with public officers
b) Corporation:
+ banned from public (but protected by constitutional proceeding)
+ Fined but no jail time
+ FCPA cooperation…??
3.2 Anti-corruption & AML investigations
www.ocalawfirm.com 19
3. Enforcement
& sanctions