{"id":15778,"date":"2025-07-29T13:33:00","date_gmt":"2025-07-29T13:33:00","guid":{"rendered":"https:\/\/roelatam.com\/?p=15778"},"modified":"2025-07-25T01:36:38","modified_gmt":"2025-07-25T01:36:38","slug":"fcpa-and-anti-terrorism-act-the-new-crossroads-of-compliance-risk-in-latin-america","status":"publish","type":"post","link":"https:\/\/roelatam.com\/es\/fcpa-and-anti-terrorism-act-the-new-crossroads-of-compliance-risk-in-latin-america\/","title":{"rendered":"FCPA and Anti-Terrorism Act: The New Crossroads of Compliance Risk in Latin America"},"content":{"rendered":"
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FCPA and Anti-Terrorism Act: The New Crossroads of Compliance Risk in Latin America<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Inspired by the insights of Matteson Ellis and Leah Moushey, published in Law360 on July 17, 2025.<\/em><\/a><\/p>

Recent policy shifts in the U.S. Department of Justice reveal a strategic evolution in enforcement: the Foreign Corrupt Practices Act (FCPA) and the Anti-Terrorism Act (ATA) are being applied in tandem to pursue corruption and transnational crime, especially in jurisdictions with cartel-linked governance structures.<\/p>

This convergence dramatically raises compliance risk for companies operating in Latin America, where government and organized crime are often entangled.<\/p>

\ud83d\udd0d Dual Exposure: When Corruption Enables Criminal Networks<\/h3>

The FCPA prohibits bribery of foreign officials, while the ATA targets material support to designated foreign terrorist organizations (FTOs). Now, U.S. authorities are using both statutes to investigate companies that interact\u2014directly or indirectly\u2014with transnational criminal organizations (TCOs), especially those newly labeled as FTOs.<\/p>

\u26a0\ufe0f Five Risk Scenarios in Latin America<\/h3>

Here are real-world examples tailored to regional operations:<\/p>

1. Weak Controls and Misclassified Transactions<\/strong><\/h3>

If a logistics company in Honduras mislabels facilitation payments to corrupt customs officials, and those officials are linked to an FTO-backed network, both accounting violations (FCPA) and support-related liability (ATA) may follow.<\/p>

2. Public Officials with TCO Ties<\/strong><\/h3>

In zones like Sinaloa in Mexico, or Choc\u00f3 in Colombia, local mayors and council members may have direct ties to cartels. If a company pays for \u201cexpedited permits\u201d or \u201clocal security coordination,\u201d it could be inadvertently funding both bribery and criminal infrastructure\u2014falling squarely under FCPA and ATA scrutiny.<\/p>

3. Shell Companies as Payment Vehicles<\/strong><\/h3>

A tech vendor in Panama bills for cybersecurity services never rendered. The shell company routes funds to cartel affiliates. If government actors are involved and the cartel is FTO-designated, compliance risks now span bribery, terrorism, and financial fraud.<\/p>

4. Bribes That Enable Illicit Trade<\/strong><\/h3>

Suppose a shipping company pays port officials in Ecuador to expedite containers. If those containers include fentanyl precursors destined for cartel routes, the company might face investigation for enabling narcotrafficking via bribery and for materially supporting an FTO\u2019s operations.<\/p>

5. SOE Corruption Under New Light<\/strong><\/h3>

Latin American state-owned enterprises\u2014Pemex, Ecopetrol, or electricity commissions\u2014are well-known FCPA risk zones. If officials inside these entities are now linked to cartels labeled as FTOs, the liability expands from corruption to anti-terrorism violations.<\/p>

\ud83d\udcc8 Why This Matters Now<\/h3>

In 2025, compliance professionals must understand that corruption can now trigger terrorism-linked enforcement<\/strong><\/span>. What previously belonged to the realm of bribery prevention now includes criminal and national security dimensions.<\/p>

This dual framework brings new urgency to:<\/p>