Corporate Crime, Fraud, and Investigations in Brazil

Bribery and Corruption

Bribery and corruption are serious offenses in Brazil, with strict laws and regulations in place to deter such practices.

• Fines: Law 12.846/13 establishes fines ranging from 0.1% to 20% of the company’s annual gross revenue.
• Criminal Charges: Individuals can face imprisonment (1-8 years) and fines for active corruption in international commercial transactions.

Insider Dealing and Market Abuse

The Brazilian securities market is regulated by Law 6.385/76, which criminalizes insider trading and market manipulation.

• Market Manipulation: Article 27-C of the law prohibits market manipulation.
• Insider Trading: Article 27-D of the law makes insider trading a crime.
• Investigation and Enforcement: The Brazilian Securities Exchange Commission (CVM) investigates and enforces administrative infractions related to the securities market.

General Information

It is essential to note that there are no exemptions for paying unlawful benefits to public officers in relation to their duties. Associated persons and agents can also be liable if they commit main criminal conducts or instigate or materially aid the perpetrator.

• Regulators’ Powers: Regulators have powers of investigation, enforcement, and prosecution similar to those for corporate fraud.
• Civil Suits: Civil suits may impose sanctions on companies, including:
  • Asset forfeiture
  • Suspension or interdiction of activities
  • Winding up
  • Prohibition from receiving subsidies and loans