Us Designation of Cartels as Terrorist Organizations Raises Risk for Companies
The US designation of cartels as terrorist organizations heightens the risk of US criminal prosecutions for American companies operating in parts of Latin America and migrants to the United States, legal experts said. The move could lead to prosecution of US companies for cartel payments, with potential consequences including fines, forfeitures, and reputational damage. Legal experts warn that the designation could also enable Justice Department prosecutors to charge cartel leaders with terrorism.
- This raises significant concerns about the ability of multinational corporations operating in high-risk regions to operate without fear of prosecution or reputational harm.
- How will companies respond to this new risk, particularly those operating in industries where protection payments are common, such as construction and energy?