Siemens’ Debarment Highlights the Crux of the Brazilian Business Challenge: Corruption Is Clear, But Anti-Corruption Law Is Ambiguous

A Brazilian federal court has ruled that Siemens A.G., Europe’s largest engineering firm and FCPA enforcement action veteran, is prohibited from participating in public auctions and signing government contracts in Brazil for five years.  Some of the conduct at issue appears to be related to the bribery charges Siemens resolved in the U.S. and Germany in 2008.  Determining the impact of this ruling for companies doing business in Brazil, and for Siemens itself, is difficult, Mayer Brown’s Kelly B. Kramer told the Anti-Corruption Report.  This is because of the country’s protracted appellate process, its decentralized enforcement system, its new and largely untested anti-corruption law and other country-specific factors.  See also “Lessons Learned on Crafting Compliance Programs from the Largest FCPA Case in History” (Jul. 11, 2012); “The Changing Dynamics of Anti-Corruption Enforcement in Brazil” (Nov. 20, 2103).  Despite the challenge of pinpointing the precise impact of this ruling, the development nonetheless offers useful lessons for companies operating in Brazil.

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