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Bolivia’s Compliance Conundrum: A Labyrinth of Regulations and Liability

Despite growing awareness of the importance of financial compliance, Bolivia remains one of the few countries without a dedicated regulation for compliance enforcement. The lack of a specific law has led to a patchwork of regulations that aim to deter non-compliance through criminal, civil, and administrative sanctions.

The Criminal System Code: A Brief Attempt at Compliance

In 2017, the Criminal System Code was introduced, attempting to fill this gap by acknowledging the criminal liability of legal persons and their representatives. Article 65 stated that legal persons could be held criminally liable if punishable acts were committed in their benefit or interest, or if they were used as an instrument for the execution of such acts.

The Law’s Short-Lived Validity

However, the law’s validity was short-lived, leaving companies without a clear framework for compliance. Instead, regulators have turned to existing laws, including the Tax Code and the “Marcelo Quiroga Santa Cruz” Law of Fight Against Corruption, Illicit Enrichment and Wealth Investigation, among others.

Consequences of Non-Compliance

These regulations impose criminal, civil, and administrative penalties on non-compliant companies, which can range from temporary suspension of authorizations to revocation of business licenses. While legal persons as abstract entities cannot be subject to criminal penalties, their representatives may face criminal liability for gross negligence or reckless disregard for compliance.

Proactive Compliance is Key

In practice, this means that companies must take a proactive approach to internal and external compliance, engaging in risk and crime prevention measures to avoid non-compliance. Failure to do so can result in administrative and civil penalties, as well as potential criminal liability for company representatives.

Expert Compliance Services from Rigoberto Paredes & Asociados

As one of Bolivia’s leading law firms, Rigoberto Paredes & Asociados has extensive experience in providing compliance services, including risk assessment, policy development, and regulatory investigation. Our team of experts helps organizations navigate the complexities of Bolivian regulations, ensuring that they remain compliant with internal and external procedures while minimizing exposure to liability.

Why Compliance Matters

In an era where entrepreneurial prestige is increasingly tied to effective compliance, companies must prioritize this critical aspect of their operations. By partnering with Rigoberto Paredes & Asociados, businesses can rest assured that they are taking a proactive approach to financial compliance in Bolivia.