Politically Exposed Persons Should Preemptively Manage Risks from Change in Government in Argentina

Argentinian President Javier Milei’s inauguration marks a shift away from the political establishment, with his agenda promising to purge the “political caste,” raising risks for politically exposed persons. New authorities around the world often engage in politically motivated investigations, and at-risk individuals and businesses should take proactive steps to protect their assets, liberty and reputation.

December 15, 2023

Argentina has elected Javier Milei as president, marking an important shift away from the political establishment that has ruled the country for years. The ensuing change in government and the enactment of his promised agenda to purge the "political caste" and eliminate the central bank and half of government ministries could raise risks for politically exposed persons.

Newly chosen authorities often engage in politically motivated investigations which may involve allegations that are either unfounded or undermined by a lack of due process. Such investigations often threaten liberty, reputation, and assets, especially those held overseas, as authorities may target individuals with document requests or asset freezes filed via Mutual Legal Assistance Treaties (MLATs).

Politically exposed individuals and/or businesses should consider taking several proactive steps to protect their assets, liberty, and reputation, including:

• Prepare a proactive factual packet admissible in court.
  • When facing politically motivated allegations, it is important to set the facts straight about the allegations in question and why they are lawful.
  • The evidence needs to be prepared in a manner that would be accepted by courts and authorities  worldwide, including in the United States, where many Latin American-related cases are heard in South Florida and New York.
• Assess asset vulnerabilities against future government attacks.
  • Individuals at risk of attack by government authorities should consider a detailed examination of their own asset structures – including those in presumptively safer offshore jurisdictions such as the British Virgin Islands, Cayman Islands and Dubai – with these potential future politically motivated actions in mind and explore lawful and appropriate preparatory measures that can be taken should an investigation be launched.
• Develop a factual narrative to protect against attacks from the media spurred on by politically motivated investigations.
  • Individuals at risk should develop a communications strategy that anticipates future legal actions and serves to discredit the allegations cast against them, with the purpose of mitigating any reputational harm caused.

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About Kobre & Kim

Kobre & Kim is a global law firm that focuses on cross-border disputes and investigations, often involving fraud and misconduct.

Our capabilities include:

• Our unique position to help clients in Latin America through our U.S.- and UK-qualified disputes teams in São Paulo and Miami that routinely act in cross-border government investigations involving Latin American and foreign authorities.
• Our deep government investigations experience with former U.S. prosecutors based in Miami, Washington, New York, Seoul and London.
• Our onshore and offshore lawyers – including an integrated group of U.S. litigators and offshore lawyers qualified in key jurisdictions, such as BVI, the Cayman Islands, Dubai and Hong Kong – helping clients identify vulnerable assets and mitigate reputational harm caused by investigations.

We also work alongside crisis communications and public relations firms, investigators, private family offices and transactional wealth advisors to provide offensive and defensive cross-border litigation strategies to ultra-high-net-worth individuals (UHNWIs) with global business interests to preserve their assets, liberty, and reputation.