The Anti-Corruption Report

The definitive source of actionable intelligence covering anti-corruption laws around the globe

Articles By Topic

By Topic: Brazilian Anti-Corruption Law

  • From Vol. 7 No.21 (Oct. 17, 2018)

    Petrobras Finally Inks Deal With SEC and DOJ to Resolve Allegations of Systemic Bribery

    Petrobras, which has been at the center of a swirling storm of anti-corruption investigations in Brazil for years, has found a measure of repose, at least with regards to U.S. enforcers. In a historic, multilateral settlement, the company has agreed to pay billions in disgorgement, penalties, fines and a civil settlement to the SEC, DOJ, Brazilian authorities and shareholder plaintiffs. In this article we take a look at the surprisingly skimpy fact patterns in the DOJ and SEC papers, as well as the terms of the settlement. Future articles will touch on the uniqueness of entering a settlement with a state-controlled entity and lessons from Petrobras’ extensive remediation efforts. See “The View From a Brazilian Prosecutor” (Jan. 10, 2018).

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  • From Vol. 7 No.18 (Sep. 5, 2018)

    A Clean Slate? Analyzing SBM’s Latest Brazilian Settlement

    Despite SBM’s recent leniency agreement with multiple Brazilian government agencies, it is unclear whether the settlement will be the final adjudication of SBM’s legal issues in Brazil. Uncertainty looms over Brazilian leniency agreements, Eloy Rizzo and Victoria Arcos of KLA – Koury Lopes Advogados explain in a guest article, because jurisdiction is spread over many government bodies and there may be liability for related violations. They detail SBM’s legal travails in Brazil and provide key compliance takeaways. See “SBM Offshore Reaches FCPA Settlement After a Reopened DOJ Investigation” (Dec. 13, 2017).

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  • From Vol. 7 No.16 (Aug. 8, 2018)

    Government Enforcers From Argentina, Brazil and the U.S. Discuss Recent Victories

    While the U.S. has often been heralded as the driving force behind the increase in anti-corruption enforcement, Daniel Kahn, Chief of the DOJ’s FCPA Unit, recently insisted that his country cannot “take credit for the tremendous work that everyone is doing and the sea change that has happened.” Speaking at the International Bar Association’s Anti-Corruption Conference in France, he argued that it is efforts across the globe that are changing the enforcement landscape. “At a panel like this five years ago, you would have heard people saying the right thing,” he remarked, but things were still moving slowly. Now, enforcers all over the world, such as his co-panelists Paulo Galvão de Carvalho of the Brazilian Federal Prosecution Office and María Laura Roteta of Argentina’s Ministerio Publico Fiscal, are actively pursuing corrupt officials and companies. Galvão de Carvalho is one of the prosecutors working on the Petrobras investigation. See “Adapting Company Compliance Policies to Account for Recent Political Changes in Argentina and Chile” (May 2, 2018).

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  • From Vol. 7 No.13 (Jun. 27, 2018)

    Anti-Corruption Enforcement Continues to Increase Around the World

    Once largely the province of U.S. authorities, anti-corruption enforcement has evolved into an international norm in recent years. Recently, the World Bank, regulatory agencies in the United Kingdom and several Latin American countries have each engaged in significant anti-corruption activity. In a guest article, Dechert attorneys Jeremy Zucker, Darshak Dholakia, Hrishikesh Hari, Jacob Grubman and Eric Auslander analyze recent anti-corruption efforts outside the United States. For more, see “How Significant Is the DOJ’s New Directive on Coordination?” (May 16, 2018).

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  • From Vol. 7 No.12 (Jun. 13, 2018)

    Ten Things Companies Need to Know About Anti-Corruption Enforcement in Brazil

    It is now no secret that the Brazilian government has been closing ranks against corruption and has increased its enforcement of anti-corruption laws. According to local media, between 2008 and 2012 (even before Operation Car Wash), the number of individuals convicted for active and passive corruption and related crime had already increased 133 percent in the country. Brazil’s fight against corruption, however, goes beyond the enforcement of its anti-corruption laws. In a guest article by Carlos Ayres, founding partner at Maeda, Ayres & Sarubbi Advogados, discusses ten things that all companies doing business in Brazil should know. For more on the anti-corruption enforcement environment in Brazil, see “The View From a Brazilian Prosecutor” (Jan. 10, 2018).

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  • From Vol. 7 No.8 (Apr. 18, 2018)

    How Regional and Local Businesses Can Embrace Latin America’s Shifting Compliance Landscape

    By any measure, 2017 was a transformative year in Latin America’s ethics and compliance landscape. A confluence of sustained high-profile scandals, national commitments to the OECD’s anti-bribery convention and increasing expertise and cooperation amongst the hemisphere’s enforcement agencies appears to have matured into a genuine shift in perception regarding the private sector’s role in combating corruption. In a guest article, Ricardo Cabral, compliance manager at General Motors Mercosur, and Carlos André Galante Grover, a litigiation associate at Richards Kibbe & Orbe, discuss how the compliance landscape in Latin America has shifted and what regional and local businesses have done to meet the unique confluence of challenges that is emerging. See “Regional Risk Spotlight: Matteson Ellis of Miller & Chevalier on Maturing Attitudes Towards Anti-Corruption Compliance in Latin America” (Aug. 16, 2017).

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  • From Vol. 7 No.2 (Jan. 24, 2018)

    The Latest in Brazil’s Campaign Against Corruption: A Change From the Status Quo

    Individuals and companies who once believed they were going to be able to hide behind Brazil’s poor legal system are paying a stiff price. The Car Wash investigation, along with the 2013 introduction of new anti-corruption legislation, has spurred a seismic change in anti-corruption enforcement in Brazil. In a guest article, Brazilian attorney Roberto di Cillo explores the contours of the new landscape, including the reach of prosecutorial authority, Brazil’s ability to enter global settlements and the country’s efforts to prosecute individuals. See “The View From a Brazilian Prosecutor” (Jan. 10, 2018).

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  • From Vol. 7 No.1 (Jan. 10, 2018)

    Local Experts Weigh In on Keppel’s $422 Million Trilateral Anti-Corruption Settlement

    In the latest fallout from the expansive Petrobras scandal, Singapore-based Keppel Offshore & Marine Ltd. and its U.S. subsidiary have agreed to a $422 million multinational settlement to resolve anti-corruption charges in the United States, Brazil and Singapore. The Anti-Corruption Report discussed the settlement and its implications for future enforcement with anti-corruption experts from both Brazil and Singapore. We flesh out the details of all three settlements and discuss the key compliance takeaways. See “Petrobras and Unaoil Investigations Collide in Individual Prosecutions in the U.S. and U.K.” (Nov. 29, 2017).

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  • From Vol. 7 No.1 (Jan. 10, 2018)

    The View From a Brazilian Prosecutor

    With significant roles in international corruption settlements such as Embraer, Odebrecht and now Keppel, Brazil is one of the United States’ closest anti-corruption collaborators. In 2017, various U.S. regulators singled out Brazil as a valued partner. At a program hosted by the ABA’s Criminal Justice Section’s Global Anti-Corruption Committee, Boni de Moraes Soares, the Director of the International Department of Brazil’s Attorney General Office, discussed the complex legal system in Brazil, details of the mammoth Operation Car Wash, including factors in its success and how companies can coordinate interactions within the complex Brazilian legal system, as well as the challenge of dividing the proceeds from multilateral settlements. See “Overcoming the Challenges of Conducting Third-Party Diligence in Brazil” (Oct. 4, 2017).

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  • From Vol. 6 No.22 (Nov. 15, 2017)

    Eight Tips for Performing Effective Corruption Investigations in Brazil

    The amplified scrutiny of corporate conduct in Brazil after Operation Car Wash has naturally led to a greater number of corruption-related investigations in that country. In a guest article, Eloy Rizzo, a partner at KLA – Koury Lopes Advogados, and Leah Moushey, an associate at Miller & Chevalier, provide a list of key considerations to help companies and outside counsel overcome challenges that can arise in Brazilian investigations. See “Ten Tips for Performing Effective Anti-Corruption Investigations in India” (May 24, 2017).

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  • From Vol. 6 No.19 (Oct. 4, 2017)

    Overcoming the Challenges of Conducting Third-Party Diligence in Brazil

    In the wake of the ongoing Petrobras scandal, conducting effective third-party due diligence in Brazil has become even more important, but local customs and peculiarities can make it difficult for those not familiar with the area. The Anti-Corruption Report recently discussed diligence strategies with Snežana Gebauer, executive managing director and head of the U.S. Investigations and Disputes practice at K2 Intelligence. Gebauer discussed how to conduct a risk analysis, the challenges of gathering public information in Brazil, the importance of human intelligence and more. See our three-part series on in-house perspectives on third-party due diligence: “Right-Sizing and Risk Ranking” (May 24, 2017); “Information Gathering” (Jun. 7, 2017); and “Red Flags and Follow-Up” (Jun. 21, 2017).

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  • From Vol. 6 No.16 (Aug. 16, 2017)

    Regional Risk Spotlight: Matteson Ellis of Miller & Chevalier on Maturing Attitudes Towards Anti-Corruption Compliance in Latin America

    The past year has seen a significant number of anti-corruption enforcement actions in Latin America, with Brazilian enforcement agencies taking a leading role. As the level of enforcement increases, and as enforcers become more sophisticated, compliance is becoming more and more important for companies doing business in Latin America. The Anti-Corruption Report recently spoke with Matteson Ellis, a member of Miller & Chevalier and the author of The FCPA in Latin America, about changing attitudes towards compliance in the region and how companies should be adjusting their programs. See “J&F Investimentos’ Record-Breaking Fine Highlights Brazil’s Commitment to Fighting Corruption” (Jun. 21, 2017).

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  • From Vol. 6 No.12 (Jun. 21, 2017)

    J&F Investimentos’ Record-Breaking Fine Highlights Brazil’s Commitment to Fighting Corruption

    In one of the largest anti-corruption settlements in history, J&F Investimentos (J&F), the controlling shareholder of the world’s largest meatpacker, recently agreed to pay U.S. $3.2 billion (BRL 10.3 billion) to settle charges that it violated the Brazilian Clean Companies Act. J&F’s fine is significantly larger than what Odebrecht paid to settle corruption claims in late 2016, a matter that is widely considered the largest anti-corruption settlement of all time. In a guest article, Brazilian attorney Isabel Costa Carvalho, a partner at Hogan Lovells, and associate Rafael Szmid, analyze the settlement and its implications. See The FCPA Report’s two-part series on the Odebrecht and Braskem Settlements: “Myriad Bribes, Two Companies and One Multibillion Dollar Global Settlement” (Jan. 18, 2017), and “Brazilian Enforcers Are MVPs” (Feb. 1, 2017).

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  • From Vol. 6 No.11 (Jun. 7, 2017)

    Time to Clean Up: What Life-Sciences Companies Need to Know About Brazil’s Operation Car Wash 

    Brazil’s Operation Car Wash originally focused on corruption at state-controlled oil company Petrobras. But recent developments indicate that other industries – including those in the medical device and pharmaceutical sectors – are now under scrutiny as well. In a guest article, Gary Giampetruzzi, a partner at Paul Hastings, and associates Jonathan Stevens and Thiago Ribeiro, provide an update on recent developments and advise medical device and other life-sciences manufacturers on how they can protect their interests in Brazil. See “Brazilian Enforcers Are MVPs in Odebrecht and Braskem Settlements” (Feb. 1, 2017).

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  • From Vol. 6 No.2 (Feb. 1, 2017)

    Brazilian Enforcers Are MVPs in Odebrecht and Braskem Settlements (Part Two of Two)

    Brazil’s years-long Operation Car Wash investigation has shaken its political and economic foundations, but the recent guilty pleas of Odebrecht, a privately held Brazilian holding company, and Braskem, its wholly owned petrochemical subsidiary, have moved the country closer to a resolution. The companies settled with Brazilian, U.S. and Swiss authorities simultaneously, as discussed in the first article in this series. Brazil initiated the investigation and will receive the majority of the multibillion-dollar settlement. The case illustrates that anti-corruption enforcement is a global game and that the U.S. is not always the most valuable player. See “Embraer Global Settlement Presages a New Paradigm in International Enforcement and Next-Level Compliance” (Dec. 7, 2016).

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  • From Vol. 5 No.24 (Dec. 7, 2016)

    Embraer Global Settlement Presages a New Paradigm in International Enforcement and Next-Level Compliance

    Embraer, the world’s largest manufacturer of mid-size jets, recently settled FCPA allegations. The settlement is a striking example of how the SEC and DOJ are working with foreign governments all over the world to investigate and prosecute corruption in a coordinated manner. The case also illustrates how companies need a next level of compliance beyond basic policies and procedures to prevent individuals from finding ways around internal controls. In this, our second article analyzing Embraer’s historic settlement, we discuss the enforcement implications as well as the compliance takeaways of the case. For details on the facts underlying the case and the terms of the settlement see our companion article “Embraer Uses Sleight-of-Hand Payments to Third-Party Agents to Sell Planes Around the World, Landing It More Than $200M in U.S. Fines” (Nov. 9, 2016).

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  • From Vol. 5 No.23 (Nov. 23, 2016)

    Brazilian Attorneys Discuss How High-Profile Corruption Investigations Are Changing Compliance in South America

    Brazil has taken the lead in anti-corruption enforcement in South America, but the risks in the region remain high. During a recent program hosted by the Society of Corporate Compliance and Ethics, panelists Shin Jae Kim and Renata Muzzi Gomes de Almeida, partners at TozziniFreire Advogados, and Fernanda Beraldi, an ethics and compliance director and corporate counsel at Fortune 500 manufacturing company Cummins, Inc., examined the current corruption climate in South America, the continuing impact of the Petrobras corruption scandal, the use of cooperation and leniency agreements in Brazil and the Brazilian government’s guidance on effective compliance programs. Beraldi also discussed how Cummins has designed its compliance program to mitigate South American corruption risks. For more from Kim and Muzzi, see “Addressing Five Major Compliance Issues Posed by Brazil’s 2016 Olympic Games” (Jun. 15, 2016).

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  • From Vol. 5 No.22 (Nov. 9, 2016)

    Embraer Uses Sleight-of-Hand Payments to Third-Party Agents to Sell Planes Around the World, Landing It More Than $200M in U.S. Fines

    Embraer, one of Brazil’s leading exporters and the world’s largest manufacturer of mid-size jets, has settled bribery allegations with both the SEC and DOJ related to its use of third-party agents in transactions spanning the globe. According to Karlis Novickis, a regional compliance officer at Whirlpool LatAm based in São Paolo, the fines in this case show that compliance “is one of the best investments” a company can make. In this article, we synthesize the SEC and DOJ’s divergent papers to provide a coherent narrative of how Embraer employees skirted the company’s internal controls. In a companion article in a future issue, we will look at the compliance and enforcement implications of the settlement. See “Regional Risk Spotlight: Giovanni Falcetta of TozziniFreire Talks Anti-Corruption in Brazil Beyond the Petrobras Scandal” (Mar. 23, 2016). 

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  • From Vol. 5 No.20 (Oct. 12, 2016)

    Mayer Brown Attorneys Discuss Continuing Fallout From Petrobras Scandal

    The Petrobras bribery scandal continues to broaden. A recent program presented by Mayer Brown provided an update on the scandal, focusing on its impact on senior Brazilian officials and related anti-corruption legislation. The program featured Kelly B. Kramer, a partner at Mayer Brown, and Bernardo Weaver, a partner at Mayer Brown’s Sao Paulo affiliate Tauil & Chequer Advogados. This article summarizes the speakers’ key insights. For more insights from Mayer Brown on Petrobras, see “How the Expanding Petrobras Scandal May Spark a New Era of Multi-Lateral Enforcement” (Dec. 2, 2015).

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  • From Vol. 5 No.13 (Jun. 29, 2016)

    Foreign Attorneys Share Insight on Data Privacy and Privilege in Multinational Investigations

    Multi-jurisdictional anti-corruption investigations are proliferating and subject companies must manage competing requests and competing legal regimes. At the recent White Collar Crime Institute presented by the New York City Bar Association, a panel of foreign lawyers delved into the challenges faced by counsel confronting multinational regulatory actions, including coordinating requests from multiple jurisdictions, preserving attorney-client privilege, conducting witness interviews and navigating data privacy laws. The panel featured attorneys based in London, Geneva, Hong Kong and Sao Paulo. See “How the Expanding Petrobras Scandal May Spark a New Era of Multi-Lateral Enforcement” (Dec. 2, 2015).

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  • From Vol. 5 No.12 (Jun. 15, 2016)

    Addressing Five Major Compliance Issues Posed by Brazil’s 2016 Olympic Games

    Brazil’s president has been stripped of authority and faces impeachment proceedings. High-ranking politicians and major companies stand accused of far-reaching corruption as a result of Operation “Car Wash.” The country is experiencing an economic crisis that enlarges as fast as the political panorama shifts. It is in the midst of this turmoil that Brazil will host the Games of the XXXI Olympiad, the first ever hosted in South America. In a guest article, Giovanni Falcetta, Thaísa Toledo Longo, Shin Jae Kim and Renata Muzzi of Brazilian law firm TozziniFreire outline the five largest corruption risks facing companies that seek economic opportunities connected to the Games and detail the laws and regulations governing Olympic-related anti-corruption compliance. For more insight from TozziniFreire, see “Regional Risk Spotlight: Giovanni Falcetta of TozziniFreire Talks Anti-Corruption in Brazil Beyond the Petrobras Scandal” (Mar. 23, 2016). 

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  • From Vol. 5 No.6 (Mar. 23, 2016)

    Regional Risk Spotlight: Giovanni Falcetta of TozziniFreire Talks Anti-Corruption in Brazil Beyond the Petrobras Scandal

    Corruption in Brazil has been all over the news recently with the fallout from the Operation Car Wash investigation affecting all levels of government. Former President Lula da Silva is facing possible jail time and current President Dilma Rousseff is facing possible impeachment related to corruption. While Petrobras, Brazil’s state-controlled oil company and the main target of the investigation, grabs most of the headlines, there is more to Brazil’s corruption landscape than the current scandal. In recent years the government has reformed the country’s anti-corruption laws, and enforcement is on the rise, making compliance a hot topic at many Brazilian companies. The FCPA Report recently spoke with Giovanni Paolo Falcetta, a partner at TozziniFreire based in São Paulo, about the corruption climate in Brazil today and what companies need to know when operating there. See “Operation Car Wash: Examining the History and Consequences of the Petrobras Scandal” (Mar. 18, 2015).

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  • From Vol. 4 No.25 (Dec. 2, 2015)

    How the Expanding Petrobras Scandal May Spark a New Era of Multi-Lateral Enforcement

    More than two years after Brazilian authorities launched their investigation into Petrobras, the consequences of the scandal continue to grow, stretching beyond the borders of Brazil and potentially encompassing other state-owned or operated entities.  In a recent webinar, attorneys from Mayer Brown and its Brazilian affiliate, Tauil & Chequer Advogados, describe the latest developments, including a Peruvian investigation into construction companies allegedly involved in the Petrobras scandal and what they say may be a potential U.S. “sweep” of companies with ties to state-owned entities, illustrated by an investigation of the Venezuelan state-owned oil company.  They also offered advice on how companies can avoid the fallout from these investigations.  See “Operation Car Wash: Examining the History and Consequences of the Petrobras Scandal,” The FCPA Report, Vol. 4, No. 6 (Mar. 18, 2015); and “Experts on Brazilian Law Explain the Latest Fallout from the Petrobras Scandal,” The FCPA Report, Vol. 4, No. 11 (May 27, 2015).

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  • From Vol. 4 No.18 (Sep. 9, 2015)

    Mayer Brown Attorneys Discuss Tax Court Corruption Scandal in Brazil

    Despite recent initiatives to curb bribery, corruption remains endemic in Brazil.  The evolving Petrobras scandal exposed extensive corruption in the petroleum industry and now another multi-billion dollar corruption scandal has come to light involving one of Brazil’s tax tribunals.  Taxpayer intermediaries appear to have bribed judges on Brazil’s Administrative Council of Tax Appeals (known as CARF) to secure favorable outcomes.  Dozens of CARF decisions from 2005 through 2013 are being investigated.  A recent program presented by Mayer Brown offered valuable insights into the corruption scheme, the pending investigations and potential liabilities for participants in the scheme under both Brazil’s Clean Companies Act and the FCPA.  The program featured Mayer Brown partner Kelly Kramer, who moderated the discussion, and Salim J. Saud Neto and Eduardo Telles, partners at Tauil & Chequer Advogados, Mayer Brown’s Brazil affiliate.  This article summarizes the key takeaways from the program.  See also “Experts on Brazilian Law Explain the Latest Fallout from the Petrobras Scandal,” The FCPA Report, Vol. 4, No. 11 (May 27, 2015); and “Operation Car Wash: Examining the History and Consequences of the Petrobras Scandal,” The FCPA Report, Vol. 4, No. 6 (Mar. 18, 2015).

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  • From Vol. 4 No.11 (May 27, 2015)

    Experts on Brazilian Law Explain the Latest Fallout from the Petrobras Scandal

    The fallout from the Petrobras bribery scandal, which has been brewing since mid-2013, continues to grow.  In April, Petrobras finally released its 2014 financial statements, which included significant corruption-related write-downs and impairments.  A recent program presented by Mayer Brown and its Brazilian affiliate, Tauil & Chequer Advogados, offered a look at the history of the Petrobras scandal, including developments since the release of the 2014 financials.  The panelists also reviewed enforcement actions being taken by Brazil’s securities regulators; economic ramifications of the scandal; and the risks and opportunities arising out of that scandal.  See also “Operation Car Wash: Examining the History and Consequences of the Petrobras Scandal,” The FCPA Report, Vol. 4, No. 6 (Mar. 18, 2015); “Brazil’s Evolving Anti-Corruption Environment,” The FCPA Report, Vol. 4, No. 9 (Apr. 29, 2015).

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  • From Vol. 4 No.9 (Apr. 29, 2015)

    Brazil’s Evolving Anti-Corruption Environment

    It has been over a year since the landmark Brazilian Anti-Corruption Act (BAA) has taken effect, and as the widespread investigation into Petrobras reveals, there is both official and grassroots disgust with the corruption that has historically plagued Brazil.  How have these current developments (which also include investigations into bribery involving the recent World Cup, the upcoming Olympics, and the aerospace conglomerate Embraer) affected the Brazilian corruption landscape and the risks of doing business there?  During a recent program presented by The Network, Matteson Ellis, a member of Miller & Chevalier, discussed those risks in the current anti-corruption environment in Brazil, detailed the new BAA regulations and offered strategies for assuring compliance with the FCPA and the BAA when doing business in Brazil.  See also “Corruption Risk and the Changing Legal Climate in Latin America,” The FCPA Report, Vol. 3, No. 4 (Feb. 19, 2014).

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  • From Vol. 4 No.6 (Mar. 18, 2015)

    Operation Car Wash: Examining the History and Consequences of the Petrobras Scandal

    As the Petrobras investigation continues to unfold, consequences for companies and individuals, both in Brazil and worldwide, grow.  Raids have been conducted; hundreds of subpoenas issued; and the number of guilty pleas is already in the double digits.  Companies involved with Petrobras face a variety of consequences including potential FCPA charges.  In a recent webinar, Mayer Brown partner Kelly Kramer, and Tauil & Chequer Advogados partners Salim Jorge Saud Neto and Leonardo Morato discussed the history of the Petrobras investigation, the economic consequences for Petrobras suppliers and the international consequences of the scandal.  See also “The Changing Dynamics of Anti-Corruption Enforcement in Brazil,” The FCPA Report, Vol. 2, No. 23 (Nov. 20, 2013).

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  • From Vol. 3 No.23 (Nov. 19, 2014)

    Petrobras Probe Updates

    Mass corruption allegations against oil and gas giant Petrobras have caused a political headache for Brazil’s president, Dilma Rousseff (formerly chair of Petrobras’ board), and has sent the company’s share prices plunging 35% in the last month.  It may be the first test of the new Lei Anticorrupção (Brazil Anti-Corruption Act).  See “Navigating Compliance Challenges After the Debut of Brazil’s New Anti-Corruption Law,” The FCPA Report, Vol. 3, No. 3 (Feb. 5, 2014).  The scandal has had global reach, with related investigations extending beyond Brazil to the U.S. and the Netherlands.  Selected recent developments follow, compiled with help from our sister publication, Policy and Regulatory Report (PaRR).

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  • From Vol. 3 No.6 (Mar. 19, 2014)

    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 FCPA 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,” The FCPA Report, Vol. 1, No. 3 (Jul. 11, 2012); “The Changing Dynamics of Anti-Corruption Enforcement in Brazil,” The FCPA Report, Vol. 2, No. 23 (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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  • From Vol. 3 No.4 (Feb. 19, 2014)

    Corruption Risk and the Changing Legal Climate in Latin America

    Although Latin American countries offer a tremendous wealth of business opportunities, the region is a potential minefield of corruption risks, perilous to navigate.  A recent webinar hosted by Strafford Publications discussed the dynamic enforcement climate, risks endemic to the region, an overview of recent and pending changes in local anti-corruption laws (including the newly-enacted law in Brazil) and provided advice on how to optimize compliance programs for the region.  The program featured Jay Holtmeier, a partner at WilmerHale; Matteson Ellis, Special Counsel at Miller & Chevalier; and Matthew J. Feeley, a Shareholder in Buchanan Ingersoll & Rooney.  See also “Gibson Dunn Attorneys Take the Pulse of Anti-Corruption Risks in Emerging Markets,” The FCPA Report, Vol. 3, No. 3 (Feb. 5, 2014).

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  • From Vol. 3 No.3 (Feb. 5, 2014)

    Navigating Compliance Challenges After the Debut of Brazil’s Anti-Corruption Law

    Brazil’s new anti-corruption law, with extensive anti-corruption provisions and strict penalties for non-compliance, is now in force.  Signed in August 2013 and effective as of January 29, 2014, the new law debuts at a time when international business and development in Brazil is booming.  In a recent webinar hosted by Strafford Publications, experts on the Brazilian Act shared detailed advice on the key provisions of the Act, risks of doing business in Brazil and how companies can comply with the Act’s provisions.  The panelists included Thaddeus R. McBride, Partner at Sheppard, Mullin, Richter & Hampton and Roberto di Cillo, Partner at Di Cillo Advogados, a Brazilian firm.  For other coverage on Brazil’s landmark law in The FCPA Report, see “Understanding and Acting on Brazil’s New Anti-Corruption Law,” The FCPA Report, Vol. 3, No. 1 (Jan. 8, 2014); “How the New Brazilian Anti-Corruption Law Impacts U.S. Corporations,” The FCPA Report, Vol. 2, No. 21 (Oct. 23, 2013); and “The Essentials of the New Brazilian Anti-Corruption Legislation,” The FCPA Report, Vol. 2, No. 17 (Aug. 21, 2013).

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  • From Vol. 3 No.2 (Jan. 22, 2014)

    Assessing the Year in FCPA Enforcement and Looking Ahead

    Following a relatively flat enforcement landscape and some bumps in the 2013 prosecutorial road, the DOJ and the SEC appear poised to spring back into action on FCPA and related anti-corruption enforcement.  Other nations have also ramped up activity in this arena by fortifying their laws and enforcement outlooks, including by bringing “carbon copy” actions.  In a guest article, T. Markus Funk and Sambo “Bo” Dul, partner and associate, respectively, at Perkins Coie LLP, take a look at the major FCPA and anti-corruption developments of 2013, as well as what may be in store for 2014.  See also “A Perspective from the FCPA Defense Bar on Brockmeyer and Duross’ ‘Year In Review’: Interview with Danforth Newcomb, of Shearman & Sterling,” The FCPA Report, Vol. 3, No. 1 (Jan. 8, 2014); and “FCPA Corporate Settlements of 2013: Details, Trends and Compliance Takeaways,” The FCPA Report, Vol. 2, No. 25 (Dec. 18, 2013).

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  • From Vol. 3 No.1 (Jan. 8, 2014)

    Understanding and Acting on Brazil’s New Anti-Corruption Law

    At the end of January 2014, Brazil’s new anti-corruption legislation, aimed at combating bribery and bid-rigging, is set to take effect.  The law contains broad anti-corruption provisions, including strict liability for some misconduct, that have serious implications for companies that do business in Brazil, whether through subsidiaries, agents or joint ventures.  A recent program presented by international law firm Mayer Brown provided a comprehensive overview of the new law and insights on how anti-corruption compliance programs may be tailored to provide the greatest protection under that law.  This article provides the key takeaways from that program.  See also “The Essentials of the New Brazilian Anti-Corruption Legislation,” The FCPA Report, Vol. 2, No. 17 (Aug. 21, 2013); “How the New Brazilian Anti-Corruption Law Impacts U.S. Corporations,” The FCPA Report, Vol. 2, No. 21 (Oct. 23, 2013); and “The Changing Dynamics of Anti-Corruption Enforcement in Brazil,” The FCPA Report, Vol. 2, No. 23 (Nov. 20, 2013).

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  • From Vol. 2 No.23 (Nov. 20, 2013)

    The Changing Dynamics of Anti-Corruption Enforcement in Brazil

    The spotlight is shining brightly on Brazilian corruption: One of Brazil’s highest-profile companies, Embraer, is being investigated by both Brazilian and American authorities in connection with alleged bribes paid to officials in the Dominican Republic and Argentina in exchange for business.  This joint investigation, the Brazilian aspect of which was uncovered by Reuters and the Wall Street Journal earlier this month, coincides with the passage and enactment of the Brazilian Anti-Corruption Act of 2013.  Recently, Robert Di Cillo, a partner at Di Cillo Advogados in Sao Paolo, and Thad McBride, a partner at Sheppard Mullin in Washington, D.C., discussed the details of the new law and its potential ramifications at a webinar sponsored by the Practising Law Institute.  See also “How the New Brazilian Corruption Law Impacts U.S. Corporations,” The FCPA Report, Vol. 2, No. 21 (Oct. 23, 2013).

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  • From Vol. 2 No.21 (Oct. 23, 2013)

    How the New Brazilian Anti-Corruption Law Impacts U.S. Corporations

    Brazil is the world’s seventh largest economy, with a GDP of over $2 trillion.  The country is considered an emerging global market, has a large domestic consumer market and is attractive to foreign direct investments.  Alongside this enormous growth, however, is the problem of corruption.  A large body of regulation governs the interaction between the public and private sectors in Brazil.  As a result, doing business in regulated sectors means that business will fall within a complex regulatory regime marked by uncertainty and burdensome bureaucratic requirements.  See “A Seven-Step Process for Mitigating Corruption Risk When Engaging Third-Party Consultants in Brazil,” The FCPA Report, Vol. 1, No. 7 (Sep. 5, 2012).  Brazil has now responded to global demands that it play a more active role in combating corruption on a domestic level – as well as the demands of the Brazilian public who have protested the lack of anti-corruption laws – with the enactment of a groundbreaking anti-corruption law that is aimed at changing the business culture in Brazil.  In a guest article, Adriana Dantas and Luiz Eduardo Alcântara, attorneys at Barbosa, Müssnich & Aragão in São Paulo, Brazil, present an overview of the Brazilian Anti-Corruption Law and explore the potential impact on U.S. companies doing business in Brazil.  See also “The Essentials of the New Brazilian Anti-Corruption Legislation,” The FCPA Report, Vol. 2, No. 17 (Aug. 21, 2013).

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  • From Vol. 2 No.17 (Aug. 21, 2013)

    The Essentials of the New Brazilian Anti-Corruption Legislation

    Spurred on by international pressure and massive street protests against corruption, the President of Brazil has signed sweeping new anti-bribery legislation.  The law has been a long time in coming – Brazil has been a party to the Anti-Bribery Convention of the OECD since 2000 and the United Nations Convention against Corruption since 2005; and this legislation was proposed three years ago.  Brazil, the planned site of the 2016 Olympics and the 2014 World Cup, holds enormous business potential for global companies because of its wealth of natural resources, growing middle class, relatively stable currency and other pro-development economic dynamics.  However, the country has notoriously Byzantine tax and regulatory systems, and corruption is endemic, making the business environment there difficult to navigate.  See “A Seven-Step Process for Mitigating Corruption Risk When Engaging Third-Party Consultants in Brazil,” The FCPA Report, Vol. 1, No. 7 (Sep. 5, 2012).  How will this new law change the risk landscape there?  In an interview with The FCPA Report, Andrew M. Levine, a partner with Debevoise & Plimpton LLP, explained in detail the salient points of the new law and its implications for companies doing business in Brazil.

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  • From Vol. 2 No.17 (Aug. 21, 2013)

    Unforeseen Corruption Liability: How to Avoid a Post-Acquisition “Oh My!” Moment

    In the “Wizard of Oz,” when Dorothy, the Scarecrow and the Tin Man are already deep in the haunted forest, Dorothy asks her guides what dangers could be present.  “Oh my!” she exclaims when she is told of the perils around her.  It is too late to turn back.  Such is the plight of many public companies when they acquire or merge with entities doing business in countries with a high corruption risk.  Without proper anti-corruption guidance, many companies discover too late that they have placed themselves – and their shareholders – in great potential danger by effectively buying a target’s legal liability for past FCPA violations.  The legal liability extends well beyond the U.S., as many countries such as the U.K. and, recently, Brazil, have enacted their own anti-corruption laws.  In a guest article, John Carney and Christina Tsesmelis, partner and senior associate, respecitvely, at BakerHostetler LLP, discuss best practices for merger and acquisition due diligence in light of U.S. precedent and the newly-passed Brazilian law.

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  • From Vol. 2 No.7 (Apr. 3, 2013)

    Lessons from the Latest Anti-Corruption Developments in the U.K., Brazil and China

    A single-minded focus on the FCPA with a passing nod to other countries’ regulatory regimes is not enough to make a company’s compliance program first-in-class today; multinational companies must fully address an array of global anti-bribery laws in an environment of growing global enforcement and increased prosecutorial vigor.  Regulatory regimes in other countries may not be consistent with existing company compliance programs.  In a recent webinar, partners from Hogan Lovells shared their insight and experience on navigating the latest global developments in anti-bribery and corruption regulation and enforcement.  This article conveys the highlights from the discussion, focusing primarily on the anti-corruption regimes in China, the U.K. and Brazil.

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