Responding to U.S. DOJ Actions Against Latin American Individuals
The U.S. Department of Justice is increasing its scrutiny on the activities of Latin American individuals, and its aggressive enforcement actions may embroil many in what can be overstated allegations. This can pose a threat to the target’s assets, liberty and reputation, so they need to work to push back as early as possible.
November 1, 2023
Individuals throughout Latin America have come under increasingly aggressive scrutiny from U.S. law enforcement, including the U.S. Department of Justice (DOJ). Many may become targeted in what can be overstated allegations.
These accusations can rapidly spiral into global asset freezes and seizures, INTERPOL Red Notices and extradition requests, financial sanctions, arrest and trial. Targets need to work with cross-border counsel knowledgeable in the DOJ’s tactics to push back as early as possible.
The DOJ’s cross-border enforcement actions have become more aggressive as it has gained expanded tools. For example, the United States Northern Triangle Enhanced Engagement Act (which focuses on El Salvador, Guatemala and Honduras), the Anti-Money Laundering Act and the Kleptocracy Asset Recovery Act include new sanction powers, compliance and reporting requirements on financial institutions and expanded whistleblower programs. A new registry of ultimate beneficial owners (UBO) in the U.S. is also set to take effect in 2024.
U.S. prosecutors may target individuals without understanding all the facts. To prevent investigations from spiraling out of control, potential targets should take proactive action:
As the DOJ aggressively ramp up its cross-border enforcement efforts, Latin American individuals potentially risk having their liberty, assets and reputations come under threat over possible misunderstandings and misinterpretations by U.S. prosecutors. A pre-emptive multijurisdictional strategy, grounded by a team of former DOJ government lawyers, can make the biggest difference in helping at-risk targets protect themselves.
Kobre & Kim is a global law firm focusing on cross-border disputes and investigations, often involving fraud and misconduct. Our capabilities include:
We also provide offensive and defensive cross-border litigation and crisis management strategies to ultra-high-net-worth individuals (UHNWIs) with global business interests to preserve their assets, liberty, and reputation.