US policy shifts designating Transnational Criminal Organizations (“TCOs”) and international cartels as Foreign Terrorist Organizations (“FTOs”) are reshaping the legal and compliance landscape, presenting significant risks for global companies, particularly those operating in Latin America. These risks include operational disruptions, legal challenges, and reputational damage. Companies doing business in the region must reassess their risk management strategies to safeguard against financial, physical, and brand risks.
We have created this practical guide to help clients exposed to TCOs and FTOs navigate these evolving threats to their organizations.
Is Your Company Prepared?
Companies should ensure their compliance programs address the following topics and their managers can answer the related questions:
- Detection and Prevention: Is your compliance program designed to detect and prevent both internal and external risks associated with TCOs and international cartels? Do you have a system to flag unusual behaviors, transactions, or patterns that may indicate criminal activity, both within your organization and across external business relationships?
- Supply Chain Risks: Do you understand how organized criminal groups might disrupt your supply chain? Do you know the access points such groups might use to transport goods to and from your facilities? What steps are in place to mitigate those risks (e.g., alternative supply routes)?
- Risk Assessment: Is your risk assessment process capable of identifying and addressing regional or market-specific external risks in places where international cartels are most active and where your business operations or supply chain may be at risk?
- Business Relationships: Are your third-party onboarding, due diligence, contracting, and monitoring procedures effective enough to identify potential links to TCOs? Will your Know Your Client procedures detect suspicious behaviors, patterns, or affiliations that may indicate connections to such groups—particularly in high-risk regions or sectors?
- Crisis Response: Does your crisis management program provide clear and actionable guidance for responding swiftly to threats including attacks on assets, personnel, or contractors?
- Employee Screening: Are your hiring and personnel procedures sufficient to identify potential affiliations with TCOs and international cartels during both the recruitment process and ongoing employment?
- Ongoing Monitoring: Do your monitoring procedures track the activities of joint business partners, third parties, or personnel who have potential connections to TCOs and international cartels? Does your third-party management system collect, analyze, and track strategic intelligence to stay ahead of emerging risks in affected regions and sectors?
- Internal Awareness and Training: Are your employees, contractors, and suppliers regularly trained on how to recognize and report potential links to TCOs or international cartels?
Need Help Assessing Your Risk Exposure?
At Nardello & Co., we bring unparalleled expertise in addressing complex financial, compliance, and security challenges across Latin America. Our deep understanding of the region’s political, legal, and business landscape positions us to help clients navigate the risks associated with TCOs and international cartels.
Our Financial Investigations and Forensic Accounting Practice is composed of forensic accountants, former US federal prosecutors, corporate compliance officers, international lawyers, law enforcement experts, intelligence operatives, data scientists, and digital investigations specialists. With on-the-ground experience, we provide sensitive and actionable insights into compliance and financial investigations, helping clients mitigate the risks posed by TCOs and international cartels. Our team has deep experience designing and implementing anti-fraud and compliance programs, managing exposure to criminal networks, and optimizing controls to meet regulatory standards.
Our Physical Security & Threat Mitigation Practice helps clients identify and mitigate high-impact security risks. Using the experience gained in the FBI, CIA, DEA, US Department of Defense, and private sector, our experts specialize in identifying and minimizing threats posed by international cartels and other TCOs. We work closely with our clients to develop strategies to protect assets, personnel, and operations from potentially life-threatening situations.
