An Update On Anti-Corruption And Compliance Trends In Latin America

What are recent anticorruption and compliance trends in Latin America?

Latin American ("Latam") countries are generally perceived to have a high level of corruption and tolerance for this practice, as if it were part of local business environments. The average score for Latin American countries in the 2016 Transparency International Corruption Perceptions Index was 44 out of 100; scores below 50 indicate governments are failing to tackle corruption. Latam companies, in turn, do not perform well, as indicated by the Bribe Payers index:

Corruption Perception Index

TI, 2016

Bribe Payers Index

TI, 2011

Brazil 40 (79/176) 14/28 Mexico 30 (123/176) 26/28 Argentina 39 (95/176) 23/28 Uruguay 71 (21/176) Not on list Colombia 37 (90/176) Not on list Chile 66 (24/176) Not on list Peru 35 (101/176) Not on list However, legislation and institutions in Latam regarding enforcement of anticorruption policies have been improving considerably over the past decade. This reflects not only institutional developments arising from specific local circumstances, but also the broader global context in which coordination of efforts to fight corruption has increased markedly. National laws of countries outside the region with strong links to Latam – especially the US – and international treaties have been addressing the need to fight corruption on a global level and to punish acts of corruption beyond national frontiers.

International Commitments

Inter-American Convention Against Corruption (IACAC)

1996/1997*

UN Convention Against Corruption

2003/2005*

OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions

1997/1999

Mexico 1996/1997** 2003/2004** 1999 Brazil 1996/2002** 2003/2006** 1999 Argentina 1996/1997** 2003/2006** 2001 Uruguay 1996/1997** 2003/2007** Non OECD member Colombia 1996/1999** 2003/2006** 2013 (non OECD member) Chile 1996/1998** 2003/2006** 2001 Peru 1996/1998** 2003/2004** Non OECD member * adoption / entered in force ** signature / ratification or deposit

What are some recent developments?

In addition to focusing on acts of corruption committed abroad, the global trend includes increasing punishment of private-sector legal entities that benefit from corruption, going beyond the traditional approach – common to many countries – of focusing punishment on individuals.

Although legislative initiatives to address this vary from country to country, there is an increasing tendency to submit private-sector legal entities to more rigid liability standards, in which sanctions may be applied irrespective of guilt and may result from the application of criteria such as lack of due care and/or the fact that the entity in question benefitted from the relevant illegal acts.

Legislation enacted throughout the region has also been strengthening the investigative tools and powers of authorities. This has led to the adoption of instruments not traditionally used in civil law countries – for example, leniency agreements and plea bargain – both of which played a central role in recent enforcement activities. Awareness-raising and training efforts are widespread. Finally, institutions are being developed, adapted and improved.

Can you comment on developments in Brazil?

Brazil is to a large extent leading this process, at least with regard to impacts and results.

This is owing primarily to Operação Lava Jato ("OLJ"). It is true that OLJ...