Financial Crime World

Financial Crimes: Severe Penalties for Market Manipulation

The National Securities Commission (CNV) of Argentina has implemented stringent laws and penalties to curb financial malpractices and protect investors from market manipulation, misleading offerings of securities, false communication about company finances, unauthorized raising of public savings, and other financial crimes.

Penalties for Financial Crimes

Individuals found guilty of manipulating the market by disseminating false information or engaging in fraudulent activities can face severe penalties:

  • Imprisonment of up to four years
  • Fines equivalent to the value of the transactions
  • Disqualification from practicing for up to five years

Similarly, those who engage in misleading offerings of securities or provide false information about a company’s financial situation can also face severe penalties.

Unauthorized Raising of Public Savings and Brokerage Services

Individuals found guilty of:

  • Unauthorized raising of public savings: imprisonment of up to four years, fines equivalent to two to eight times the value of the operations, and disqualification from practicing for up to six years
  • Brokerage services without proper authorization: imprisonment of up to four years, fines equivalent to two to eight times the value of the operations, and disqualification from practicing for up to six years

Bribery in the Financial Sector

Bribery in the financial sector is a serious offense punishable by:

  • Imprisonment of up to two years
  • Special disqualification from practicing for up to six years

Other Criminal Offenses

Other criminal offenses include:

  • Certification and authorization of false balance sheets and other financial reports
  • Financial sector fraud

In cases where these crimes are committed on behalf of or with the intervention of a legal entity, that entity can face penalties including:

  • Fines equivalent to two to 10 times the value of the goods served by the criminals
  • Suspension of activities for up to 10 years
  • Cancellation of public benefits

Prevention and Investigation

The Securities Commission has taken steps to prevent these crimes by authorizing the National Public Prosecution Office (PPO) to investigate and prosecute financial crimes. The PPO can:

  • Initiate investigations sua sponte, without the need for a private complaint
  • Summon defendants to give investigative statements before trial

Conclusion

These severe penalties aim to deter individuals from engaging in financial malpractices and protect investors by ensuring that those who commit these crimes are held accountable for their actions.