Brazilian Government Unveils New Whistleblower Protection Law Amidst Efforts Against Global Corruption
Until last year, Brazil was one of the few countries without a whistleblower protection legislative framework in place. However, this has changed with the introduction of Article 15 of Federal Law 13.964, 12.24.2019 (Anticrime Law), which provides a set of protections and incentives to whistleblowers reporting criminal activity and administrative misconduct.
Coverage of the New Law
The new law applies to whistleblowers reporting:
- General public corruption
- Fraud related to government procurement and contracts
- Government-owed companies
- Government-funded programs
- Criminal activities and administrative misconduct harming the “public interest”
Protections and Incentives for Whistleblowers
Whistleblowers under the new law are entitled to:
- A monetary reward of 5% of what the government recovers from fraud and corruption cases
- Four key protections:
- Confidentiality
- Protection against retaliation
- Immunity from civil and criminal liability
- Benefits outlined in the Brazilian Victim and Witness Protection Act (Federal Law 9.807/1999)
Confidentiality and Retaliation Protections
The law requires authorities to treat whistleblowers’ identities as confidential information, but it does not provide for anonymity and allows disclosure if relevant to the public interest or investigation.
Protection against retaliation is another crucial aspect of the new law, which offers examples of unfair treatment, such as:
- Dismissal
- Demotion
- Denial of benefits
Whistleblowers are entitled to double repayment for damages and punitive damages if retaliation occurs. However, these consequences may only be applied after a court order in a lengthy judicial proceeding.
Immunity from Liability and Benefits
The law provides immunity from civil liability, but it does not establish a specific framework for dealing with other legislation that requires confidentiality or data protection. Additionally, it does not explicitly prohibit employers from imposing nondisclosure or confidentiality clauses on employees to restrict their ability to report misconduct.
Whistleblowers are also protected against criminal liability, including charges of defamation or violation of secrecy provisions.
Victim and Witness Protection Act
The law applies the Victim and Witness Protection Act (Federal Law 9.807/1999), which provides for a range of benefits, including:
- Police escort
- Relocation
- Financial support
- Medical care
- Psychological assistance
The regulation will need to deal with these new potential users, and budget concerns are already being raised.
Conclusion
The introduction of this whistleblower protection law marks an important step in Brazil’s efforts against global corruption and fraud. As the country continues to strengthen its anti-corruption measures, it is crucial that whistleblowers are protected and empowered to come forward with information that can help bring corrupt individuals and organizations to justice.