Financial Crime World

Brazil Strengthens Integrity Programmes with New Public Integrity System

In a major step to modernize its anti-corruption efforts, Brazil has established the Public Integrity System (SIPEF) through Decree 10756/2021. The new system further institutionalizes and strengthens integrity programmes, ensuring effective risk management across the Federal Executive Branch.

Defining Integrity Risks

The Office of the Comptroller General of the Union (CGU), responsible for co-ordinating the implementation of integrity programmes, has defined integrity risks as:

  • “Vulnerabilities that could favour or facilitate the occurrence of corruption, fraud, illicit acts and/or violations of standards of conduct.”
    • Revised definition under SIPEF: “The possibility of an event of corruption, fraud, irregularity or ethical or conduct deviation that may impact the achievement of objectives.”

Supporting Public Managers with Risk Management

To support public managers in identifying integrity risks, the CGU has developed a comprehensive guide on risk management. The guide shifts the focus from traditional compliance-based approaches to a context-dependent, behavioral, and risk-based approach. It provides practical steps for implementation and emphasizes the importance of promoting cultural change within organizations.

Key Features of the Guide

  • Offers flexibility for public entities to adapt the methodology to specific contexts
  • Improves risk assessment methodologies over time
  • Invites public managers to identify transversal integrity risks that may hinder organizational objectives

Real-World Example: Brazilian Federal Police

The Brazilian Federal Police has successfully used data from past disciplinary proceedings to identify integrity risks. Their analysis of 2,384 cases led to the identification of four main events:

  • Personal advantage
  • Leaking of information
  • Privileged services trading
  • Fraud

The Future of Anti-Corruption Efforts in Brazil

The establishment of SIPEF marks a significant milestone in Brazil’s efforts to strengthen its anti-corruption framework. The new system will help public entities proactively identify and mitigate integrity risks, promoting transparency, accountability, and good governance across the country.