AUGUST 18, 2016
With anti-corruption efforts making noise throughout the hemisphere, Argentina is quietly on the brink of a major victory. A draft bill that would change the way the country prosecutes malfeasance seems like a simple fix. But if passed, the legislation could have a major effect on the way businesses treat – and crackdown on – corruption within their ranks.
The new bill, set for consideration by Congress in the coming months, would change that dynamic. The legislation would seek to incentivize corporations to crackdown on corruption themselves by expanding liability to cover businesses as a whole. Businesses that profit from bribes – even if corporate leadership is not involved – would be legally responsible and open to prosecution. Importantly, in an effort to encourage businesses to limit and prevent corruption on their own terms, corporations would be able to avoid sanctions against them if they can show that they have mechanisms in place designed to prevent corruption.