Latin American Blog

Legal Issues Affecting the Hispanic Latino Market & Hispanic Latino Companies

On January 2, 2021 the National Defense Authorization Act (“NDAA”) became law.  Importantly, the NDAA included sweeping legislative reforms to anti-money laundering (“AML”) laws, which are now codified in the Anti-Money Laundering Act of 2020 (“AMLA”) (NDAA §§ 6001-6511). Designed to enhance national security concerns, these AML amendments will significantly impact financial institutions, certain types of businesses—both domestic and foreign, and High Net Worth Individuals (“HNWIs”).  While HNWIs legitimately seek to maintain confidentiality in their corporate entities or wealth management structures, the AMLA will make that more difficult and potentially more dangerous.…
The Biden Administration took office on January 20, 2021. Many executive orders have been executed since that date, some of which directly change the manner of handling immigration matters.  However, the U.S. and the world are still dealing with the global pandemic and this directly affects submissions, filings, and consular appointments.  This update provides a list of the latest updates to U.S. visas and immigration matters, as well as what we forecast for the months to come.…
Since 2005, California employers with 50 or more employees were required to provide at least 2 hours of sexual harassment training every 2 years to each supervisory employee, and to new supervisory employees within 6 months of their assumption of a supervisory position.  However, all employers may not yet know that the California anti-harassment training requirements were significantly expanded by the California legislature (SB 1343 and SB 788 – to read the prior article, click here).  Now, California employers with 5 or more employees must provide sexual harassment training and education by January 1, 2021 to not just supervisory employees, but non-supervisory employees as well. This…
Following lots of legislative uncertainty, Brazil has now formally enacted the country’s first general data protection law, Lei Geral de Proteção de Dados, or “LGPD.” While administrative sanctions do not go into effect until August 1, 2021, individuals and public prosecutors can now bring claims for losses and damages. Indeed, at least one public civil action has already been filed. LGPD is the first comprehensive general data protection law in Latin America. It was modeled after the EU’s GDPR. While there are many similarities, LGPD does introduce new concepts. Below are some of the key elements to keep in mind.…
Hiring employees does not usually call to mind international trade compliance obligations. However, together U.S. export controls and anti-discrimination laws create a web that is overlooked or misunderstood by many types of employers of all sizes across many industries. Anti-discrimination laws prohibit unlawful citizenship status restrictions when hiring, and U.S. export controls prohibit disclosing controlled information to foreign nationals without authorization. Together, these laws limit acceptable job descriptions and hiring practices.…
Relief on Substantial Presence and Treaty Day-Count Tests. On May 30th, the IRS issued Revenue Procedure 2020-20 which provides non-U.S. individuals present in the U.S. some limited relief from the day-count tests for U.S. tax residency and for eligibility for certain treaty benefits.  The relief comes in the form of the “COVID-19 Medical Condition Travel Exception”.  The name of the exception is a misnomer because individuals need not have had any medical condition (including the COVID-19 virus) to claim its benefits.…
On May 22, 2020, the Mexico Committee of the ABA – Section of International Law published a Special Edition Newsletter regarding the Legal Impact of COVID-19 in Mexico.  As the Co-Chair of the Mexico Committee of the ABA  – Section of International Law,  I worked with the ABA Mexico Committee to get this publication out in a timely manner.  The intention for this special edition is to serve as a resource that provides a general understanding of the legal aspects and impact in Mexico of COVID-19 in each of the areas of law that we covered. …
Key Takeaways The United States-Mexico-Canada Agreement (USMCA) provides for financial and digital trade regulations that harmonize the treatment of fintech companies. North American companies leveraging digital assets for payments should consider strategic regional opportunities available under the new USMCA fintech Framework. The USMCA Parties (member countries) continue to license fintech companies using cryptocurrency and create regulatory sandboxes to incentivize experimentation with the new technology under relaxed regulatory conditions.…
On May 13, 2020, Sheppard Mullin co-sponsored a webinar hosted by the United States-Mexico Chamber of Commerce involving Mexico’s economic outlook and the impact on the maquiladora industry. Below are some interesting take-aways from the program. Economic Outlook Sergio Luna, Director of the Department of Economic Research and Chief Economist at Citibanamex, explained that notwithstanding the global recession we are experiencing, the Mexican peso is projected to appreciate towards the end of 2020. However, because it will take time to recover from the recession, the GPD growth for Mexico is projected to be at -9% for 2020 but is expected…
Doing business across cultural lines can be challenging. The spoken and unspoken rules will change depending on where in the world you find yourself. A misstep or unintended faux pas can be the difference between landing the deal or successfully negotiating a resolution to a disagreement and failing. This article is a companion piece to Episode 66 of Sheppard Mullin’s Nota Bene podcast where we discuss some of our tips for doing business in Mexico. Below are some quick pointers we discussed on the podcast. Although not perfectly transferable, these tips should also apply to business dealings in Latin America…
On January 16, 2020, the United States Senate voted by an overwhelming majority to pass the implementing legislation for the United States-Mexico-Canada Trade Agreement (USMCA) after months of tense negotiations with Democrats over revisions to the original agreement which had been signed by all three signatories on November 30, 2018. The USMCA has been touted by its supporters as a comprehensive and modern trade agreement to replace the North Atlantic Free Trade Agreement (NAFTA). But how does the USMCA differ from NAFTA and what is so modern about it? The following is a brief overview of the notable differences between…
Lately, ICE has been more active in making arrests of undocumented individuals. Statistically however, the number of arrests are very small and the “bark” is much bigger than the “bite.” Nonetheless, it is helpful for employers and other stakeholders to know what the required protocols and duties are if ICE shows up, employee rights, and bystander rights. Below is a quick checklist to help you along with important guidance. Major Points Immigration is a civil matter, not criminal. The majority of ICE warrants are administrative civil warrants. ICE priorities are arresting those with criminal convictions and those who have been previously ordered removed (absconders). ICE may pursue…
It’s 9:30 pm on a Sunday and you just got a call on your cell from U.S. Customs & Border Protection (“CBP”) at LAX. A Vice President from one of your foreign offices has been spending a lot of time here lately developing business leads and strategy. CBP is holding him in secondary inspection and he’s been there for 12 hours. Even though he’s paid overseas, CBP has some questions to ask you to see if he has been “working” here. CBP advises you that they are seriously considering giving him an “expedited removal order” with a 5-year bar on entering the…
A tripartite agreement to save NAFTA has been reached. The agreement, reached late last night, provides Congress the necessary 60 days’ notice of the text to approve so that President Pena Nieto of Mexico can sign before he leaves office on November 30th. All three countries wanted to get a deal done before the change of government in Mexico to President – Elect Lopez Obrador. U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said the accord would be renamed the U.S.-Mexico-Canada Agreement (“USMCA”). The USMCA will replace the North American Free Trade Agreement, which dates to 1994 and…