Evolving Sanctions and Regulatory Landscapes in Latin America: Compliance, Cybersecurity, and Global Scrutiny
By Lorena Blitz
Latin America’s regulatory landscape is changing rapidly as countries adopt new laws around artificial intelligence (AI), cybersecurity, data protection, and sanctions. The push for stronger compliance has grown, particularly in response to evolving U.S. sanctions on human rights and corruption (AS/COA, 2023). As a result, businesses and investors in the region face increasing regulatory challenges. Countries like Brazil, Argentina, and Chile are strengthening their laws, shaping how companies use technology, manage data, and meet compliance standards.
Argentina is leading the way in regulatory modernization. Before the EU AI Act, Argentina issued AI guidelines promoting ethical use, transparency, and accountability. In 2024, the country updated its personal data protection laws, increasing penalties for non-compliance and improving enforcement (Argentina Data Protection Authority, 2024). The government also approved a National Cybersecurity Strategy to protect IT systems, mobile user identities, and consumer data. Additionally, Argentina ratified Convention 108+ in 2023, committing to international data privacy standards, and adopted new rules for international data transfers to improve cross-border security.
Brazil is also strengthening its data protection and cybersecurity framework. In 2024, the National Data Protection Authority (ANPD) issued key resolutions requiring companies to report security incidents, define data protection roles, and regulate international data transfers. Other regulatory bodies, such as the Central Bank of Brazil (BACEN) and the National Telecommunications Agency (ANATEL), have introduced stricter data privacy rules for financial institutions, telecom providers, and aviation companies. Brazil is also debating new laws on AI, fake news, digital child protection, and online content payments, reflecting its growing focus on digital governance.
Chile has made significant progress in fintech, cybersecurity, and data privacy. The country’s new Fintech Law sets rules for crowdfunding, open finance, cryptocurrency transactions, and investment advisory services. The recently passed Cybersecurity Law requires organizations to improve security measures and report cyber incidents. In August 2024, Chile approved a major Data Privacy Law reform, creating a Data Protection Agency, expanding consumer rights, and introducing stricter rules for data sharing. Companies have 24 months to comply with these regulations, marking a major shift toward stronger data governance.
Cyber threats are a growing concern in Latin America, with Peru, Mexico, Paraguay, and Colombia among the most targeted nations (Cybersecurity Ventures, 2024). Governments are taking a risk-based approach to AI and digital security, limiting high-risk applications while encouraging innovation. Argentina is positioning itself as a leader in this area by developing a flexible framework that fosters investment. However, with increased regulations come stricter compliance demands. Companies operating in Argentina must now align with global standards, such as Convention 108+ and AI governance rules. While these efforts boost Argentina’s attractiveness to investors, businesses, particularly fintech firms, must strengthen their AI, data security, and sanctions policies to avoid penalties.
Brazil’s evolving regulatory environment is also driving investment in cybersecurity. The country’s strict security incident reporting, data transfer rules, and AI regulations are pushing businesses to improve their security measures. International data transfer laws have a significant impact on multinational companies and cloud service providers. Meanwhile, proposed legislation on fake news and content payments could affect tech companies and social media platforms, influencing their moderation policies and revenue models (Tech Policy Journal, 2024). While compliance costs may rise, these regulations will also enhance consumer trust and market stability, making Brazil a safer place for investors.
Chile’s fintech and cybersecurity regulations are forcing businesses to reassess risk management strategies and improve security protocols. The creation of a Data Protection Agency and the introduction of stricter consent requirements bring Chile in line with global data protection standards. This benefits international businesses already following EU GDPR-like regulations, making compliance easier for multinational firms.
As LATAM jurisdictions advance their regulatory frameworks and guidelines, companies and businesses must now adapt to an ‘evolving compliance environment’ shaped by ethical use of AI, cybersecurity laws, data protection measures, and sanctions enforcement. Companies operating in the region must ensure country-specific and issue-based sanctions compliance, to mitigate sanctions non-compliance risks. Countries like Argentina, Brazil, and Chile are aligning with global standards, creating both investment opportunities and compliance challenges for multinational corporations. Moving forward, companies operating in the region must strengthen data and cyber security risk management strategies and ensure regulatory alignment to mitigate sanction risks and maintain cross-border business integrity.
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The Author
Lorena Blitz
Customer Success Manager at Winterhawk
Originally from Brazil and raised in the U.S., I now reside in Northern Ireland with my family. With an MBA from Suffolk University and 10 years of experience in Customer Success across the SaaS and MSSP industries, I am dedicated to helping businesses enhance their GRC strategies. My passion lies in building strong client relationships and delivering solutions that drive measurable business value.
If you’d like to learn more about how Winterhawk helps organizations worldwide optimize risk and compliance, feel free to reach out (info@winterhawk.com). Our tailored approach focuses on addressing business challenges, improving operational resilience, and supporting long-term sustainability objectives.
