Financial Crime World

Anti-Bribery and Corruption Laws in Brazil: Key Considerations

Brazil has implemented various measures to combat bribery and corruption, affecting both domestic and international businesses operating within its borders. This article addresses two critical aspects of anti-bribery and corruption laws in Brazil:

Due Diligence on Third Parties

Brazilian law requires companies to conduct thorough due diligence on third parties as part of their efforts to prevent bribery and corruption. The Brazilian Clean Companies Act (Lei Anticorrupção) outlines this requirement.

Key Aspects of Due Diligence:

  • Risk Assessments: Conducting risk assessments before engaging with a third party is essential.
  • Background Checks: Performing background checks, including reviews of financial records and previous involvement in corrupt activities, helps identify potential risks.
  • References and Recommendations: Seeking references and recommendations from credible sources can provide valuable insights into a third party’s reputation and reliability.
  • Anti-Corruption Commitment: Requiring third parties to demonstrate their commitment to complying with anti-corruption laws is crucial for ensuring they share your values.
  • Contractual Clauses: Including anti-corruption clauses in contracts with third parties can help prevent corrupt activities.
  • Ongoing Monitoring: Implementing ongoing monitoring mechanisms to assess continued compliance helps ensure that third parties remain committed to anti-corruption principles.

International Cooperation

Brazil actively engages in international cooperation on anti-bribery and corruption matters, participating in various notable treaties and agreements aimed at combating corruption globally.

Key International Instruments:

  1. United Nations Convention against Corruption (UNCAC): Brazil is a party to this convention, which aims to prevent and combat corruption.
  2. Organisation for Economic Co-operation and Development (OECD) Anti-Bribery Convention: Brazil has signed this convention, which seeks to eliminate bribery of foreign public officials in international business transactions.
  3. Mutual Legal Assistance Treaties (MLATs): Brazil has entered into MLATs with numerous countries, enabling the exchange of information and assistance for criminal investigations and proceedings.
  4. Extradition Treaties: Extradition treaties between Brazil and several countries facilitate the surrender of individuals wanted in connection with serious crimes, including corruption offenses.
  5. International Organizations: Brazil collaborates with international organizations such as the United Nations Office on Drugs and Crime (UNODC) and INTERPOL to combat corruption and related crimes.

By understanding these key aspects of anti-bribery and corruption laws in Brazil, companies can better navigate the complex regulatory landscape and ensure compliance with local and international requirements.