ARGENTINA Law and Practice Contributed by: Roberto Durrieu, Tomas Guido and Aranzazú Sesma Lasierra, Estudio Durrieu
Failure to Prevent Bribery • Under Law No 27,401, the failure to imple - ment adequate compliance measures can lead to liability for companies, especially if bribery occurs within their operations. While the law does not specifically criminalise the failure to prevent bribery as a standalone offence, companies can face legal conse - quences if they lack an effective compliance programme, which may result in increased penalties if a violation is discovered. Penalties for Violations (Law No 27,401) • Fines. • Suspension of Activities. • Reputational damage – beyond legal penal - ties, companies may suffer reputational harm, impacting their business relationships and market position. 8.2 Compliance Guidelines and Best Practices The following enforcement bodies in Argentina provide guidelines regarding expectations and best practices for compliance programmes, par - ticularly in relation to anti-corruption measures. • The Public Prosecutor’s Office: guidance on the necessary components of effective compliance programmes, emphasising the importance of a comprehensive approach that includes risk assessment, training, moni - toring, and reporting mechanisms. • The Anti-Corruption Office: this body pub - lishes recommendations and frameworks for companies to follow, for establishing and maintaining compliance programmes (Code of Conduct, Risk Assessment, Training Pro - grammes, Reporting Mechanisms, Monitoring and Evaluation, Collaboration with Private Sector, International Standards).
These guidelines serve to help companies understand their responsibilities under the law and provide a roadmap for establishing robust compliance programmes that can mitigate the risks of corruption and foster a culture of integ - rity. 8.3 Compliance Monitorships Enforcement bodies have the option to seek a compliance monitor as part of corporate resolu - tions in cases involving violations of anti-corrup - tion laws. Role of a Compliance Monitor • Oversight and evaluation: a compliance monitor is appointed to oversee the imple - mentation of a compliance programme within a company that has been found to have engaged in corrupt practices. • Independence: the monitor is typically an independent third party with expertise in compliance and anti-corruption practices. • Reporting : the monitor is responsible for providing regular reports to the enforcement bodies, detailing the company’s progress in implementing compliance measures, any areas of concern, and recommendations for improvement. Process for Appointment • Part of settlement agreements: the appoint - ment of a compliance monitor is often includ - ed in settlement agreements or deferred prosecution agreements reached between the company and enforcement bodies. • Duration and scope : this can vary depending on the severity of the violations and the com - pany’s compliance history. The enforcement body typically outlines specific objectives and timelines for the monitor’s work. • Follow-up evaluations: the enforcement body may evaluate the company’s compliance cul -
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