In an article by the Anti-Corruption Report, co-chair of the firm’s global anti-corruption & international risk and Latin America practices María González Calvet commented on the recent settlement involving Telefónica Venezolana, the Venezuelan subsidiary of Spanish telecom group Telefónica S.A. The settlement addressed allegations from the DOJ that the company paid officials to gain preferential access to hard currency, a critical resource in Venezuela.
María emphasized the importance of strong internal controls and risk management frameworks for multinational companies operating in volatile economies. She noted that the settlement “further demonstrates the seriousness” with which the DOJ considers companies’ remediation and cooperation when determining settlement amounts. She also highlighted the significance of international cooperation among government authorities in such cases, as seen in the Telefónica Venezolana investigation.
María also pointed out that the economic volatility in Venezuela creates complex challenges for businesses, making it imperative for companies to implement robust compliance programs to detect and prevent illegal activities like bribery and corruption. She stressed the need for thorough due diligence and ongoing monitoring of third parties to mitigate risks associated with foreign operations.
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