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Latin America: Key FCPA, Disputes Challenges
A closer look at key LatAm FCPA and disputes challenges the past decade.
BY MARGARITA R. SÁNCHEZ
The past decade has been a period of significant geopolitical shifts and notable legal challenges, including the global legal response to the pandemic caused by COVID-19. During this period, several corruption investigations and high-profile litigation involving Latin America have impacted domestic, regional, and international law.
In the anti-corruption and investigations area, notable developments include FCPA cases: Odebrecht (2016), Corficolombiana (2023), Glencore (2022), and other trading company resolutions (Vitol, Trafigura (2024)), PDVSA (2023) and Petrobras (2018). Additionally, other high-profile matters such as the investigation of the Secretary General of the Organization of American States (OAS) (2023), have had a significant impact on democracy and regional enforcement priorities, as well as the way business is done in Latin America.
In parallel with the developments in the field of anti-corruption, international litigation and arbitration in Latin America have seen several noteworthy developments between 2014 and 2024. These include ICSID’s Angel Samuel Seda et al. v. Colombia (2024), a case related to the seizure of land allegedly linked to organized crime. The case, which was dismissed on jurisdictional grounds, has prompted ongoing discussions about government measures designed to safeguard the state’s essential security interests. Similarly, the García Armas et al. v. Venezuela (UNCITRAL, 2019) was the first investment treaty award to uphold jurisdiction for claims by dual nationals. Another significant development was the settlement agreement in Abaclat v. Argentina (2016), which involved sovereign debt instruments and mass litigation.
Other notable developments in Latin American arbitration over the past ten years include enforcement challenges against Venezuela, following the imposition of economic sanctions to counter corruption and the increased use of third-party funding. Furthermore, in 2023, the Supremo Tribunal Federal of Brazil made a landmark ruling in the case of Martín E. Mestre Yunes v. Jaime E. Saade, allowing a non-party to participate and appeal in extradition proceedings. This decision underscores Brazil highest court’s commitment to safeguarding the rule of law and ensuring access to justice.
Over the past decade, there have been also notable efforts to increase the number of women appointed to international arbitral tribunals and as expert witnesses in Latin American matters. While there is still work to be done, there have been significant improvements during the past ten years, thanks in part to several initiatives such as the ERA Pledge (2015) and its sister pledge, the ERE Pledge.
Finally, the 2014-2024 decade saw a significant strengthening of ties between Spain and Latin America, capitalizing on the strong historic, cultural, linguistic, and economic ties between the two regions. Spanish arbitration institutions and organizations, including the Centro Internacional de Arbitraje de Madrid, the Centro Iberoamericano de Arbitraje (CIAM-CIAR), and the Club Español e Iberoamericano de Arbitraje (CEIA), have made a notable impact on the landscape of Latin American arbitration. Similarly, in recent years, Latin American arbitrators and law firms have expanded their presence in Spain, creating new opportunities for deeper integration in the Ibero-American legal market.
Looking ahead, I am confident that Latin America—and the Caribbean, will continue to demonstrate its immense potential. The next decade will undoubtedly bring new challenges for both anti-corruption and cross-border disputes. To address global geopolitical risks, environmental, social, and human rights concerns, the transition from fossil fuels to renewable energy, and the regulation of technology—particularly artificial intelligence—lawyers, policymakers, and business leaders doing business in Latin America will need to adapt, innovate, and collaborate, allowing for quick turnaround decisions when necessary.
Margarita R. Sánchez is Head of International Arbitration at Miller & Chevalier.
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