On August 27th of this year, the Plurinational Legislative Assembly enacted the Law for Strengthening the Fight against Corruption, which aims to strengthen the mechanisms and procedures established in the framework of Law No. 004 of March 31, 2010, on the Fight against Corruption, Illicit Enrichment and Investigation of Fortunes "Marcelo Quiroga Santa Cruz", of the Criminal Code and the Code of Criminal Procedure, aimed at investigating, prosecuting and sanctioning acts of corruption committed by public servants and former public servants, in the exercise of their functions; and natural or legal persons and legal representatives of legal persons, whether public or private, national or foreign, that compromise or affect State resources.

The Law modifies articles 34, 105, 142, 144, 145, 146, 147, 150, 151, 152, 153, 154, 157, 158, 158, 163, 173, 174, 177, 221, 222, 224, 225 and 229, of the Criminal Code, for which the law suggests that companies implement a Compliance Program that allows identifying, evaluating and managing possible risks.

Relevant Offenses:

  • Legitimization of illicit gains.
  • Illicit enrichment
  • Active bribery
  • Harmful Contracts to the State
  • Breach of Public Contracts
  • Use of fictitious or simulated companies or associations.

Sanctions applicable to Legal Entities:

  • Loss of legal personality
  • Economic Sanctions
  1. Fine
  2. Temporary loss of state benefits
  3. Forfeiture
  4. Prohibitive Sanctions
  5. Partial suspension of activities
  6. Prohibition of activities
  7. Remedial Sanctions
  8. Implementation of prevention mechanisms

Sanctions may be imposed alternatively or concurrently, giving way to the possibility of their simultaneous application. 

Cases in which sanctions are applied:

  • Upon the commission of punishable acts that have been committed for the benefit of the legal person.
  • When companies or legal entities, in addition to their main activity, are engaged in the commission of criminal acts of corruption .
  • When the legal persons are instruments for the realization of acts of corruption.

Mitigating and Aggravating circumstances:

  • Mitigating circumstances
  1. Previous denouncement of the illicit act to the authorities.
  2. Collaboration in a factual investigation
  3. Providing useful information to prove the participation of other persons in the illicit acts of corruption.
  4. Repairing or diminishing the damage caused
  • Aggravating circumstances
  1. Multiple victims
  2. Recidivism