Preventing Corruption in Argentina’s Financial Services Industry
Strengthening Laws and Regulations
The Argentine government has taken significant steps to combat corruption within the financial services sector. The Corporate Criminal Liability Act, enacted to hold companies accountable for corrupt activities, is a key measure. This law expands the territorial scope of the Argentine Criminal Code, making it applicable to actions committed abroad by individuals or entities based in Argentina.
International Cooperation and Treaty Ratification
Argentina has ratified several international agreements that facilitate cooperation with other jurisdictions on criminal matters, specifically targeting corruption crimes. The Ministry of Foreign Affairs and Worship serves as the central authority for these treaties, except for the Treaty of Mutual Legal Assistance in Criminal Matters with the United States, which is handled by the Ministry of Justice and Human Rights.
Integrity Programme Adequacy Standard
The integrity programme adequacy standard requires that a company’s programme be directly related to its risks, dimension, and economic capacity. The Anti-corruption Office has established guidelines to help legal entities comply with provisions related to corporate criminal liability. These guidelines aim to provide technical guidance for companies, civil society organizations, and state agencies.
Key Steps in Designing an Integrity Programme
- Carry out a risk assessment prior to designing and implementing an integrity programme
- Assess any particular risk (or lack thereof) to the relevant financial services provider (FSP)
- Balance and reflect the identified risks in the integrity programme
Compliance with Federal Laws
In addition to complying with the Corporate Criminal Liability Act and guidelines, FSPs must also comply with other federal laws that aim to tackle corruption. For instance, a law enacted on May 15, 2019, allows companies to make financial contributions to political campaigns within certain limits, requiring donations made in cash to be made via the banking system for transparency.
Mandatory Elements of an Integrity Programme
- An ethical code
- Policies and procedures of integrity
- Rules of integrity in public tender processes
- Training and awareness
Conclusion
The Argentine government’s efforts to prevent corruption within the financial services industry aim to create a more transparent and accountable environment for businesses operating in the country.