FCPA, Anticorruption and Compliance in Guatemala and El Salvador
Foreign Corrupt Practices Act (FCPA) is the law that prohibits United States’ companies or any of its subsidiaries, regardless of where are located its operations and employees, the direct or indirect promotion of bribery to foreign officials in order to benefit from this action.
Nowadays in Guatemala and El Salvador is unknown the impact and the need to prevent corrupt acts regulated by both international normative (like FCPA) as well as local, applicable in private (regardless of size) and public companies. It is obligation of all people and companies to know what is occurring in the development of the businesses, since it cannot be plead ignorance of law. It is then recommendable for all companies to have an effective compliance program that includes the development of corporate policies, ethic codes, disciplinary guides, among others, in order to reduce the risks of corrupt practices. To do so, it is indispensable to have a permanent monitoring that allows the constant evaluation of the Program.
García & Bodán Guatemala along with the local law firm Asensio Andrade Flores & Asociados, and Cámara de Comercio Guatemalteca Americana (AmCham); as well as García & Bodán El Salvador along with Cámara Americana de Comercio de El Salvador (AmCham), both offices with the support of the international law firm Miller & Chevalier, carried out conferences last May in their respective countries about the effects of the new legislation against corrupt practices and how to manage its risks. The main objective was to present a Central American perspective about American regulations, to make known the American anti-corruption laws in different fields and the impact that these laws have in international companies operating in Guatemala and El Salvador. It was used a theoretical and practical methodology, in order to analyze some cases of penalized companies, as well as possible actions of corruption and different responsibilities that companies may be exposed to, besides a significant reputational damage.
“We highlight the importance of counting with an objective, realistic and personalized Compliance Program, and to identify the company areas of greater risk to focus the efforts. The companies have to count with training programs for all the employees, to reach the effectiveness in its development, and finally a constant and permanent monitoring of the program, followed by an extern audit”, said María Mercedes Castro, Associate of García & Bodán Guatemala.
