CRIMINAL LIABILITY FOR ILLICIT ENRICHMENT IN BOLIVIA - Rigoberto Paredes Abogados Bolivia

Illicit enrichment constitutes one of the most serious threats to public assets and undermines citizens’ trust in government institutions. In the Plurinational State of Bolivia, this offense is not only subject to severe criminal penalties, but its scope has also been extended to include private individuals who harm the public treasury through indirect means. A typical example is a public official who abruptly increases their wealth without justification consistent with their declared income, or a private company that obtains undue economic benefits through fraudulent public contracts.

ILLICIT ENRICHMENT BY PUBLIC OFFICIALS IN BOLIVIA

Bolivian criminal law establishes that a public servant commits the crime of illicit enrichment when their assets increase disproportionately and the individual cannot legally justify such growth. This offense is punishable by five to ten years of imprisonment, disqualification from holding public or elected office, and confiscation of illicitly acquired assets.

The legal framework also addresses related conduct, such as the misuse of public assets and services. This occurs when state resources are used for personal purposes or for the benefit of third parties—even if no direct personal gain is obtained. If the misuse results in damage or destruction of the asset, the penalties are significantly harsher.

BREACH OF TRUST IN BOLIVIA

An illustrative case would be a public official who uses a government vehicle for a personal vacation. If the vehicle is damaged during this unauthorized use, the penalty increases due to the material loss inflicted on the State.

Below are the applicable penalties for public officials involved in the misuse of state resources or unjustified enrichment:

Illicit enrichment: 5 to 10 years of imprisonment, asset forfeiture, fines, and disqualification from public office.
Misuse of state assets: 1 to 4 years of imprisonment (if no damage is caused); 3 to 8 years (if damage occurs).
False sworn asset declarations: 1 to 4 years of imprisonment and a monetary fine.

As detailed in another publication on our website, illicit enrichment in the public sector is considered a specific offense (delito propio), meaning it can only be committed by individuals in public office, given the direct link between wealth accumulation and official duties. However, Bolivian criminal law also includes an independent offense applicable to private individuals who unjustifiably increase their wealth in a manner that harms the State. Both offenses share the same objective: to protect public assets and punish unjustified enrichment, although they differ in their legal configuration and applicable subjects.

ILLICIT ENRICHMENT BY PRIVATE INDIVIDUALS IN BOLIVIA

Illicit enrichment is not exclusive to public officials. Bolivian criminal law also penalizes private individuals and legal entities that, through their economic activities, disproportionately and unjustifiably increase their wealth to the detriment of the State. Such situations often arise from corrupt contracts, concessions, or fraudulent bidding processes.

For instance, a private company that secures a public contract through bribery and later overcharges for services not rendered may be penalized if it fails to justify its financial gains, especially when those gains are linked to losses suffered by public institutions.

Penalties include three to eight years of imprisonment, financial fines, asset forfeiture, and, in the case of corporate entities, an additional fine equal to 25% of their net worth, along with the obligation to return any misappropriated state funds.

The following are the sanctions applicable to individuals and companies that engage in unjustified enrichment through private economic activity that negatively impacts public finances:

Natural persons: 3 to 8 years of imprisonment, fines, and asset forfeiture.
Legal entities: restitution of affected assets and a 25% fine based on company net worth.

FACILITATION OF ILLICIT ENRICHMENT AND CONCEALMENT NETWORKS

A recurring practice that supports illicit enrichment is the use of third-party proxies or “front men.” Those who allow their names to be used or who participate in financial or commercial transactions to disguise the illegal origin of wealth are also committing a criminal offense.

A typical case would involve a relative of a public official appearing as the legal owner of real estate acquired with funds of unknown origin that actually belong to the official. This conduct is punishable by up to eight years of imprisonment and significant financial penalties.

Criminal liability also extends to individuals who falsify or omit information in their sworn asset declarations. Transparency in these declarations is a cornerstone for preventing corruption and facilitating institutional oversight.

Forms of concealment that may result in criminal sanctions in cases of illicit enrichment include:

Use of proxies or financial facilitators.
False or omitted sworn declarations of assets and income.

CORRUPTION OFFENSES ARE NOT SUBJECT TO STATUTES OF LIMITATIONS IN BOLIVIA

A distinct feature of Bolivia’s criminal justice system is that corruption-related offenses are not subject to any statute of limitations. This ensures that such crimes can be investigated and prosecuted regardless of how much time has passed. The objective is to eradicate impunity and strengthen institutional mechanisms against corruption.

In summary, illicit enrichment in all its forms poses a serious threat to public assets and the rule of law. The current legal framework in Bolivia establishes strict penalties for both public officials and private individuals who unlawfully benefit from public resources, whether directly or through sophisticated concealment schemes.

Our law firm has specialized professionals ready to provide expert legal counsel in criminal matters and corruption cases. If you or your company require assistance, contact us for a confidential case evaluation.

Frequently Asked Questions (FAQs)

What are the legal consequences for a public official who cannot justify their wealth?

They may face 5 to 10 years of imprisonment, disqualification from holding public office, and confiscation of unlawfully acquired assets.

Can a company be charged with illicit enrichment?

Yes. If a company harms public finances through unjustified economic activities, it may face criminal and financial sanctions.

What happens if someone lends their name to hide illicit assets?

They may be prosecuted for facilitating illicit enrichment, which can result in up to eight years of imprisonment.

Do corruption-related crimes expire over time?

No. Under Bolivian law, corruption offenses are not subject to statutes of limitations.

Is it mandatory to declare assets and income when leaving public office?

Yes. Omission or falsehood in these declarations is a punishable offense.

The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.