Reorientation in the Enforcement of the FCPA: New Guidelines Establish Priorities for Latin America

Reorientation in the Enforcement of the FCPA: New Guidelines Establish Priorities for Latin America After months of uncertainty following the temporary suspension of the enforcement of the Foreign Corrupt Practices Act (“FCPA”), the U.S. Department of Justice issued new guidelines that resume its implementation, this time with an approach that may lead to increased scrutiny in Latin America, and particularly in Central America. In this context, it is essential that companies continue to strengthen their compliance programs, as the reorientation of the FCPA enforcement marks the beginning of a renewed effort to combat the organized crime in Latin America as well as the practices that weaken the local institutions. Reorientation of the FCPA The U.S. Department of Justice’s guidelines reaffirm that the FCPA remains in force. Therefore, corrupt practices abroad continue to constitute a crime under U.S. law and may be subject to investigation. Under the new framework, prosecutors are instructed to focus their investigations on conduct that poses a direct threat to U.S. strategic interests. The guidelines outline five non-exhaustive priority factors:

• Links to transnational organized crime: Priority will be given to cases in which corrupt conduct is connected to the operations of international criminal organizations.
• Conduct that harms U.S. businesses: Emphasis will be placed on situations where corruption has deprived U.S. companies or individuals of fair competition or caused specific economic harm.
• Impact on national security: Special attention will be paid to cases in strategic sectors—such as critical infrastructure, intelligence, or defense—where bribery of foreign officials may jeopardize U.S. national security.
• Clear corrupt intent: Regardless of the subject matter, serious conduct will be investigated when it involves substantial payments, concealment schemes, or obstruction of justice.
• Capacity of foreign authorities to act: Authorities will assess whether the competent local agencies are willing and able to investigate and prosecute the same conduct. This may increase pressure on local enforcement bodies to cooperate with the U.S. on this priority matter.

It is also worth recalling that corrupt practices may qualify as criminal offenses under applicable local or international laws, independently of the FCPA. In addition, corruption continues to pose significant reputational and operational risks for companies operating in Central America. It has been observed that companies with robust compliance programs not only mitigate legal risks, but also generate competitive advantages, such as i) Greater market trust, as investors and consumers favor companies with clear ethical conduct policies; and ii) Protection against operational risks, including financial losses resulting from corrupt practices within the supply chain or business partnerships. In light of Central America’s strategic relevance, it is suggested for companies operating in the region to continue reinforcing their anti-corruption systems and business ethics policies. Corrupt acts remain subject to strong penalties under local legal frameworks and are subject to scrutiny under the FCPA’s reoriented enforcement strategy. BLP’s team stands ready to assist you in reviewing and strengthening your compliance programs. Contact us at [email protected] for further guidance.