Latin American countries have strengthened laws against illicit business activity involving companies in money laundering. How can organizations prevent such activity?
Sometimes, without a company's knowledge, third parties such as customers, suppliers, investors, or contractors may use it for illegal financial transactions. The consequences can include fines, criminal penalties, and serious damage to the reputations of executives and the organization.
Latin American companies also maintain commercial, financial, and investment relationships with counterparts in the United States and Europe that seek to prevent and punish corruption and money laundering.
Companies should take steps incomplianceto address prevention policies recommended by national and international authorities.
Compliance and illicit business activity
An organization should have acompliance officerand external support, such as specialized legal advisers. Together, they can help prevent the organization from becoming involved in bribery, fraud, corruption, or money laundering by criminals or corrupt officials.
These teams should ideally report to the organization's senior management.
Prevention matters, but so does being prepared if wrongdoing occurs. The original article notes that judicial authorities in the United States and many Latin American countries may consider a company's earlier efforts to prevent offenses by the business, its executives, and its employees.
During investigations and legal proceedings, prosecutors and judges may ask whether the company had a professional compliance team and properly implemented programs.
Compliance teams must stay current on trends in money laundering, corruption, political scandals, investigations, and cybercrime. These acts can impose high financial and tax costs, and organizations must address both the misconduct and its aftermath.
Raise your compliance standards
At EthicsGlobal we believe a compliance and prevention team is essential. Legal, operational, occupational, financial, employment, and security risks exist in every organization and can harm its environment and brand reputation.
If you want to prevent these behaviors in your organization, contact us through our social media channels: Twitter, Facebook or LinkedIn.