Recently, the Trump Administration designated a number of Latin American drug cartels as Foreign Terrorist Organizations (“FTOs”). These new FTO designations may expose companies operating in Mexico and other Latin American countries to significant legal risk. Many FTO-designated cartels have embedded themselves in the local economy, so much so that they are difficult for legitimate businesses to avoid. And if businesses do engage with FTOs, they run the risk of being sued in the United States. For example, the ATA creates a private right of action allowing U.S. nationals injured by an act of international terrorism to sue those allegedly responsible for their injuries. When an act of terrorism is committed, planned, or authorized by an FTO, liability can extend to entities who aided and abetted or conspired with the FTO to commit terroristic acts. Defendants in ATA cases face treble damages and attorneys’ fees, in addition to litigation costs and potential reputational damage.

This webinar will discuss the ATA generally and then explain how the recent FTO designations might impact companies doing business in Latin America. We will share lessons learned from cases arising from Middle Eastern terrorism, which might help those with Latin American risk manage or mitigate that risk.