Business between the US and Venezuela is booming, with record highs in trade and private capital investments last year. At the same time, perceived risk is on the rise due to Venezuela’s suspected role in narcotics trafficking, relationship with Iran and alleged support of the FARC. Financial institutions can both retain their Venezuelan clients and manage risk by developing a sound compliance program that will satisfy heightened regulatory scrutiny.

Why would the world’s leader in Risk Consulting and Investigations team up with Latin America’s leading independent Market Intelligence firm?  It is a question that goes well beyond the dynamic of two consulting firms and touches upon some important trends shaping global demand for market-driven consulting.

Pharmaceutical fraud has had a deep economic impact on an otherwise promising industry in Latin America.  According to the Federal Drug Association, 40% of all drugs sold in Argentina, Colombia and Mexico were counterfeit.  Intellectual property fraud in the pharmaceutical industry results not only in lost market share, but can also damage brand strength and endanger public health.  Kroll offers some "Preventative Advice" to pharmaceutical companies, developed by helping clients in the industry minimize the risk of intellectual property fraud in Latin America.

It’s no secret that Venezuela is awash in oil revenues and public spending.  Yet, out of the limelight of high gas prices and Chavista politics, the private sector silently grew faster than any Latin American economy at 8.2% last year.  Even with a slight contraction in the oil sector, the overall economy expanded 8.4% and private consumption saw a 19% increase.  Growth on this scale represents a tremendous opportunity for companies that have remained in Venezuela despite the inherent risk, or captured their spending abroad.  Affluent Venezuelans, whether they have ties to the government or the private sector, are once again finding creative ways to spend and shelter their growing wealth in uncertain conditions.