CORPORATIONS AND CORRUPTION: THE LEGAL SCENARIO FOR INVESTORS IN COLOMBIA

After several years of public policy changes and diplomatic meetings, Colombia was recently invited to be a member of the Organisation for Economic Co-operation and Development (OECD). In addition to other positive factors, Colombia is now more attractive to foreign investors. Foreign investment also presents potential risks for public officials and investors, as new businesses will challenge ethics and good business practices. In fact, one legal change made by Colombia in order to be invited to the OECD was to improve the liability corporations face if they are found to be involved in bribery.

To begin with, there is no criminal liability for legal entities. However, they are accountable for crimes committed by persons related to them. The nature of that liability is administrative and civil, despite some sanctions being imposed in criminal procedures. In other words, legal entities can be called to face either administrative investigations or criminal procedures. But in this event, sanctions will not be criminal in nature. In this context, corporate liability requirements vary depending on the scenario and sanctions that apply.

Jul-Sep 2018 Issue

Guerrero C&L