Mitigating Risks of Organised Crime Allegations in a Central American Mining Joint Venture

Problem:

The board of a London-listed mining company was alarmed by reports suggesting their Central American joint venture (JV) partner had direct links to crime cartels. They needed to understand the validity of these allegations and the potential risk to their company.

Actions:

• Conducted an in-depth investigation to determine whether the JV partner had current or historic ties to organised crime, both directly and indirectly.

• Assessed the level of risk to the mining company related to these allegations, considering potential legal, reputational, and operational impacts.

• Provided a risk rating (green, amber, or red light) based on the findings of our investigation, to guide the mining company's next steps.

• Delivered a confidence level related to each of the investigation's findings, ensuring the mining company understood the reliability of the information provided.

• Recommended strategies for managing identified risks and navigating potential future issues related to the JV partner.

Results:

• Uncovered the validity of allegations regarding the JV partner's ties to organised crime, providing clarity on both current and historic connections.

• Assessed and clarified the potential risk of criminal liability in the UK for the company and its directors, particularly in relation to money laundering, bribery/corruption, and fraud.

• Delivered strategic recommendations for managing identified risks, equipping the mining company with the necessary framework for resolving the issue.