Compliance News Report
September 2022
El DOJ announces changes to Corporate Criminal Enforcement Policies
Lisa Monaco, Deputy Attorney General of the US Department of Justice, announced through a memorandum dated September 15, 2022, the new approach to be followed by U.S. prosecutors when investigating corporate crimes and when negotiating plea agreements. Monaco stated that the DOJ’s priority remains the prosecution of individuals and highlighted a new approach to corporate recidivism, self-reporting, selection of monitors. The importance of creating a corporate culture that discourages illegal behavior and rewards ethical actions is at the center of the new approach.
ESG: EU proposes regulation that would ban products made with forced labor
The bill proposes to prohibit the import, export and sale of goods made wholly or partially with forced labor, regardless of where they are manufactured. If approved, the regulation will order Member States to prevent and sanction the entry of this type of products. The regulation will be an additional incentive for companies to ensure that their supply chains are free of forced labor.
The National Terrorist Financing Risk Assessment was unanimously approved in Argentina
Articulated by the Ministry of Justice and prepared by more than ten specialized agencies, the Assessment analyzes the main threats and vulnerabilities that Argentina presents in the prevention and prosecution of Terrorist Financing. This assessment, as well as the National Money Laundering Risk Assessment, approved in last June, are essential requirements to comply with the international commitments undertaken with a view to the FATF assessment in 2023.
Brazil amended the decree regulating the Anticorruption Law
Federal Decree No. 11,219/22, effective as of 07/19/2022, introduces changes to Federal Law No. 12,846/13 (“Anti-Corruption Law”), including: a) changes in the calculation of the fines for legal persons, b) greater detail in some parameters for the evaluation of the integrity program; c) procedures for preliminary investigations and the Administrative Accountability Process (PAR, for its acronym in Portuguese), among others.
AML/CFT
DOJ charges Venezuelan businessman with bribery and money laundering linked to jointly controlled oil company
The DOJ indicted a Venezuelan national for laundering money resulting from procurement contracts adulterated up to 100 times their actual cost, obtained by paying bribes to senior officials of a joint venture between a Venezuelan state-owned and controlled energy company and a U.S. oil company.
ESG
Access to foreign currency was regulated to expand oil and gas production in Argentina
The Argentine Government regulated the operation of the Foreign Currency Access Regime for Incremental Oil Production (RADPIP, for its acronym in Spanish) as well as a similar promotion scheme for gas, through Decree 484/2022. Those who are included in the regime may request the recognition of the corresponding benefits as from the third quarter of 2022, upon compliance with the requirements and within the terms established by the Energy Secretariat, states the decree in its article 2.
Corruption
Corruption asset recovery: DOJ to return to Peru $686,000 seized from former President Alejandro Toledo
The funds were confiscated to former Peruvian President Alejandro Toledo, under investigation for corruption. According to the US justice department, Toledo bought properties in Maryland for approximately US$1.2 million he previously received in bribes. The repatriated funds are the proceeds of the sale of these properties.
IDB debars Brazilian construction company for ‘failure to prevent’ bribery
The Inter-American Development Bank (IDB) debarred a Brazilian construction company for a year and a half for corrupt and fraudulent practices related to a project in Brazil. The sanction implies that the company will not be able to participate in projects and operations financed by the IDB during the 18 months of disqualification. According to the IDB, the construction company admitted having paid bribes between 2013 and 2015 totaling around US$1 million to a public official involved in the supervision and management of the contract.
Three Chinese investment fund executives detained as part of a corruption investigation into state-backed investments
The Central Commission for Discipline Inspection (CCDI) -China’s main anti-corruption watchdog- reported through a statement that three executives related to the Chinese state-backed chip industry investment fund are being investigated for corruption.
Crypto
The European Union is seeking to create a new anti-money laundering regulatory body to oversee cryptocurrencies
The European Parliament aims to sanction a regulation that creates a new regulator: the ‘Anti Money Laundering Authority’ (“AMLA”). This body will monitor crypto businesses in the European Union considered a risk for money laundering.
For futher information please contact:
- Guillermo Jorge
Corporate Compliance, Internal Investigations and Business Crime.
Partner
guillermo.jorge@bruchoufunes.com - Fernando Basch
Corporate Compliance, Internal Investigations and Business Crime.
Partner
fernando.basch@bruchoufunes.com