Spouses and Agents Liable for Financial Crimes in Argentina

Clarification on Liability for Spouses and Agents

In a landmark ruling, the Argentine courts have clarified the circumstances under which spouses and agents can be held liable for financial crimes such as bribery and corruption.

Spouses’ Liability

• According to the country’s Criminal Code, spouses of main offenders can be prosecuted and punished for their role in facilitating the commission of the crime.
• This means that they can face the same penalties as the principal perpetrator if found guilty.

Agents’ Liability

• Agents, including lawyers and accountants, who facilitate the illegal activities of their clients or employers can also be held liable.
• The courts have the power to punish agents who knowingly assist or abet financial crimes, with penalties ranging from fines to imprisonment.

Authorities Responsible for Investigations and Enforcement

Federal Criminal Courts

• Responsible for hearing cases related to bribery and corruption.
• Conduct investigations and have the authority to request reports from public and private agencies, issue search warrants, and confiscate assets.

National and Local Police Forces

• At the disposal of the federal courts, providing support in conducting searches, gathering evidence, and executing court orders.

Powers of Prosecution

Code of Criminal Procedure

• Requesting reports from public and private agencies
• Ordering procedural and precautionary measures to prevent obstruction of investigations
• Detaining accused individuals
• Prohibiting individuals from leaving the country
• Seizing and freezing assets
• Issuing search warrants
• Confiscating assets

Sanctions for Financial Crimes

Criminal Penalties

• Imprisonment
• Fines
• Special disqualification from public office

Administrative Sanctions

• Nullification of contracts
• Removal of companies from state registries

Safeguards in Place

Process of Appeal and Judicial Review

• Measures put in place to safeguard the conduct of investigations.
• Helps ensure that investigations are conducted fairly and without bias.

Tax Treatment of Illicit Payments

Income Tax Law

• Does not explicitly prohibit the deductibility of bribes or other illicit payments.
• States that net losses arising from illegal operations are non-deductible.
• Implies that the deductibility of bribes is prohibited by Argentine tax law.

Conclusion

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In light of these developments, individuals and companies operating in Argentina would be well-advised to ensure that their business practices comply with local laws and regulations to avoid liability for financial crimes.