Spouses and Agents Liable for Financial Crimes in Argentina
A recent investigation in Argentina has revealed that spouses and agents may be held accountable for their involvement in bribery and corruption cases, even if they are not considered the primary offenders.
Associated Persons Not Considered Principal Offenders
While associated persons are not considered principal offenders, they can still face punishment as accomplices if they facilitate the commission of a crime. In such cases, they will be subject to the same penalties as the main perpetrator.
Authorities with Powers of Prosecution, Investigation, and Enforcement
The Argentine federal criminal courts have been identified as the competent authorities to hear bribery cases and matters concerning corruption of public officials. These courts conduct investigations and can delegate powers to prosecutors. National and local police forces are at their disposal to perform, execute, and comply with court orders.
Powers of Prosecution
- Request reports from public and private agencies
- Order procedural and precautionary measures to avoid obstruction and prevent escape
- Detain accused individuals
- Prohibit travel outside the country
- Seize and freeze assets
- Issue search warrants
- Confiscate assets
Powers of Search and Compel Disclosure
National and local police forces are empowered to conduct searches or compel disclosure by order of federal courts.
Powers to Obtain Evidence
- Request reports from public and private agencies by order of federal courts
Power of Arrest
Both national and local police forces have the power to make arrests by order of federal courts.
Court Orders or Injunctions
The courts have the authority to issue orders or injunctions to prevent obstruction and ensure compliance with their decisions.
Decision-Making Authority
The decision to charge is made by the authorities, based on evidence gathered during investigations. Alternative methods of disposal include administrative sanctions, such as declaring contracts null and void or removing companies from state registries.
Convictions and Sanctions
Those found guilty of bribery and corruption can face imprisonment ranging from one to six years, as well as perpetual special disqualification from public office. Legal entities are also criminally liable for corruption crimes committed with their intervention or in their name.
Safeguards
Measures have been put in place to safeguard the conduct of investigations, including a process of appeal and judicial review.
Tax Treatment
The Income Tax Law does not explicitly prohibit deductibility of bribes, ransoms, or other payments arising from blackmail or extortion. However, it does state that net losses arising from illegal operations are non-deductible.
Conclusion
In light of these findings, individuals and legal entities alike are advised to exercise caution when engaging in financial transactions to avoid being implicated in bribery and corruption cases.