Argentina: Judge’s Power to Raise Bank Secrecy in Financial Crimes Cases
In a major breakthrough in the fight against financial crimes, judges in Argentina have been granted the power to lift bank secrecy contracts between banks and their customers. This move aims to aid investigations into corrupt practices and money laundering.
New Powers for Judges
The new powers, outlined in the Criminal Procedure Code, allow federal judges to raise the bank secrecy agreement, which is contractually agreed upon by banks and their customers. However, this does not mean that information about suspects will be disclosed. Instead, it allows investigators to access financial records and evidence related to criminal activities.
Authority of a Federal Judge
Under the code, national and local police forces are authorized to assist federal courts in conducting searches, obtaining evidence, and executing court orders. This includes:
- Detaining accused individuals
- Prohibiting them from leaving the country
- Seizing and freezing assets
- Issuing search warrants
- Confiscating assets
The authority of a federal judge is limited geographically to Argentina, but authorities and judiciary cooperate with overseas regulators in practice.
Protection for Witnesses
To protect certain individuals from testifying as witnesses, Article 250 of the Criminal Procedure Code requires them to submit written reports instead. This applies to:
- High-ranking government officials
- Members of the judiciary
- Senior military officers
Conduct of Investigations
In addition, both judges and prosecutors have the power to conduct interviews under the code. Police forces can also perform or execute witness interviews by order of the authorities. Accused individuals’ statements can only be taken by a judge.
The national and local police forces are empowered to:
- Conduct searches
- Compel disclosure
- Request reports from public and private agencies
- Make arrests by order of federal courts
Criminal Penalties
In cases involving bribery and corruption, Argentine law does not impose special civil or administrative procedures. However, some administrative sanctions may apply, including:
- Declaring contracts null and void
- Removing companies from the state registry of suppliers and contractors
- Imposing fines or penalties on individuals
Criminal penalties for those found guilty of bribery and corruption include imprisonment and perpetual disqualification from public office.
Safeguarding Investigations
To safeguard the conduct of investigations, measures are in place to ensure that evidence is collected and preserved properly. There is a process of appeal and judicial review available in cases involving financial crimes.
Tax Treatment
In terms of tax treatment, payments such as bribes, ransoms, or other payments arising from blackmail or extortion may not be tax-deductible as business expenses under Argentine law. However, the deductibility of bribes is implicitly prohibited by tax law, according to the government’s stance before the OECD Working Group on Bribery in International Business Transactions.
Conclusion
The lifting of bank secrecy agreements and the granting of new powers to judges are significant steps forward in Argentina’s fight against financial crimes. This move aims to aid investigations into corrupt practices and money laundering, and demonstrates a commitment to transparency and accountability in the country’s financial sector.