Brazil’s State-Owned Companies Face New Compliance Obligations
The Brazilian government has introduced new regulations requiring state-owned companies to implement internal programs and controls for compliance, auditing, risk management, and codes of conduct.
Strengthening Anti-Corruption Framework
The Law, enacted on August 14, 2018, imposes a duty on those who integrate these state-owned companies to carry out adequate risk management. As they are companies with state capital, they will be subject to rigorous supervision by authorities and regulatory agencies. This move comes as part of Brazil’s efforts to strengthen its anti-corruption framework, following the country’s largest-ever corruption scandal, Operation Car Wash.
New Compliance Obligations
The new regulations require state-owned companies to:
- Establish effective compliance programs
- Conduct regular audits
- Implement risk management strategies
These measures will ensure that these companies are better equipped to detect and prevent corruption, fraud, and other illicit activities.
International Cooperation
In addition, the government has been increasing international cooperation with foreign authorities, including the signing of innovative agreements with US authorities. This move reflects Brazil’s growing commitment to combating corruption and collaborating with other countries in this effort.
Impact on State-Owned Companies
The implementation of these new regulations is expected to have a significant impact on the way state-owned companies operate in Brazil. It will require them to adopt a more proactive approach to compliance, risk management, and ethical behavior, which will ultimately benefit the country as a whole.
Digital Transformation Framework
As part of its efforts to stay ahead of the curve, Brazil has also established a framework for digital transformation, covering areas such as machine learning, artificial intelligence, robots, and blockchain. This framework aims to promote innovation and growth in these sectors while ensuring that they are used responsibly and ethically.
Data Protection Law
The Data Protection Law, enacted on August 14, 2018, is another key development in Brazil’s efforts to regulate the digital economy. The law sets out guidelines for the processing and use of personal data, ensuring that individuals have greater control over their own information and that companies are held accountable for any breaches of privacy.
Key Developments of the Past Year
The past year has seen several key developments in Brazil’s anti-corruption landscape, including:
- The criminalisation of private corruption
- The extension of criminal liability to legal entities for environmental wrongdoing, public administration violations, and financial system crimes
- The signing of innovative agreements with US authorities
- The growth of international cooperation between Brazilian authorities and foreign enforcement agencies
- The increasing trend towards punitive penalties for companies found guilty of corrupt practices
Conclusion
Overall, Brazil’s efforts to strengthen its anti-corruption framework and promote digital transformation are crucial steps towards creating a more transparent and accountable business environment.