TerraLex Guide to Anticorruption Legislation

Not applicable.

Laws No. 11,179 – 27,401– 25,246 – 25,188 – 25,233 – 27,739, among others.

• Law 27,401 - Law governing the criminal liability of private legal entities, of national or foreign capital, whether partially state-owned or not, for the commission of the crimes of bribery and influence peddling, dealings in conflict with a public’s official duties, extortion, illicit enrichment and misrepresentation in financial statements and reports.

• Law 11,179 – The Argentine Criminal Code governs numerous corruption crimes, including, in addition to those regulated by Law 27,401, the crime of embezzlement of public funds, illegal levies, tampering with public seals and documents, abuse of authority and breach of public officials’ duties, among others.

• Law 25,246 - Law governing the crimes of concealment and laundering of proceeds of crime and the administrative criminal regulations applicable to legal entities. Creation of the Financial Information Unit (Unidad de Información Financiera or "UIF"). Legal entities’ duty to report to the UIF. Cooperation of the UIF with judicial bodies and the Attorney General's Office in the criminal prosecution of crimes and the enforcement of penalties.

• Law 25,188 - Law governing the duties and standards of ethics applicable to public officials: duties, prohibitions, and conflicts of interest, without exception, applicable to all individuals holding public offices at all levels and hierarchies. Regulations on asset disclosure statements, incompatibilities, and conflicts of interest. Regulations governing gifts to public officials, among others.

• Law 25,233 - Law that creates and regulates the Anti-Corruption Office, which will be in charge of drafting and coordinating anti-corruption programs in the national public sector concurrently with the Office of the Public Prosecutor for Administrative Investigations.

• Law 27,739 - Law that modifies the Argentine Criminal Code and Law 25,246 to prevent money laundering, terrorist financing, and the proliferation of weapons of mass destruction.

Yes. The Argentine Criminal Code and Law 27,401 apply to crimes committed or having effects in the Argentine territory, or in places subject to its jurisdiction, and to crimes committed abroad by agents or employees of Argentine authorities while discharging their duties, or to crimes committed abroad by Argentine citizens or legal entities domiciled in Argentina.

Yes. All the aforementioned laws cover crimes committed by government-owned, partially government-owned, and private legal entities.

No. Facilitation payments are considered a type of bribery; therefore, they are prohibited by Argentine anti-corruption laws.

Yes. The Argentine Criminal Code (section 1) and Law 27,401 (section 29) are applicable to crimes committed overseas by agents or employees of Argentine authorities while discharging their duties, or to crimes committed abroad by Argentine citizens or legal entities domiciled in Argentina. Likewise, Law 27,401 (section 2) establishes that legal entities are liable for crimes committed with their involvement or on their behalf, in their interest or for their benefit.

Yes. The Argentine Criminal Code and Law 27,401 apply to crimes committed or having effects in the Argentine territory or in places subject to its jurisdiction, and to crimes committed overseas by agents or employees of Argentine authorities while discharging their duties, or to crimes committed abroad by Argentine citizens or legal entities domiciled in Argentina.

Yes. Directors may be found personally liable and shall unlimitedly answer out of their personal property for misconduct in office and violation of the law and the company by-laws, even when such conduct originates in or is attributed to acts of corruption or violations of Law 25,246.

In the case of natural persons, the sanctions under the anti-corruption laws may include fines, imprisonment, temporary or perpetual disqualification from holding offices, among others.

In the case of legal entities, the sanctions under the anti-corruption laws may include fines, total or partial suspension of activities, suspension from participating in tenders or bidding processes, dissolution and liquidation, forfeiture, or suspension of governmental benefits, among others.

Yes, according to Law 27,401 and the Argentine Criminal Code, companies can be held liable for the following crimes: a) Bribery and influence peddling, both national and transnational; b) Dealings in conflict with a public official’s duties; c) Extortion; d) Illicit enrichment of public officials and employees; e) Misrepresentations in financial statements and reports, among others.

Companies are liable for the preceding crimes if (i) they have been carried out, directly or indirectly, with their involvement or in their name, interest or for their benefit; and (ii) the individual who acted for the benefit or in the interest of the company was a third party who lacked the authority to act on its behalf, as long as the company has ratified such third party’s acts, even tacitly.

However, companies will be exempt from liability only if the individual who committed the crime has acted for his or her exclusive benefit and without generating any benefit to the company.

The implementation of preventive measures (i.e. having compliance programs) is not mandatory for companies while conducting their commercial activities. Therefore, there are no potential sanctions in this regard. However, it is mandatory for companies to have a compliance program in place if they execute contracts with the National Government.

Yes. In the event that a company commits a crime provided for by Law 27,401 and the Argentine Criminal Code, it will be exempt from responsibility and penalty if it has complied with all the following conditions: a) It has spontaneously reported the crime as a consequence of an internal detection and investigation activity; b) has implemented a compliance program that includes an adequate control and supervision system prior to the commission of the crime; and c) has returned the undue benefit obtained.

Yes. The company and the Public Prosecutor's Office may enter into an effective cooperation agreement, in which the company is obliged to cooperate through the disclosure of precise and verifiable information for the clarification of the facts, the identification of the perpetrators or participants or the recovery of the profits of the crime, as well as the fulfillment of additional conditions (i.e., payment of fines, return of the profit obtained, redress of damage, implementing or improving company compliance programs).