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Anticorruption Enforcement In Brazil
Editor's Note: Last month, the authors discussed the rise in high-profile corruption investigations in Brazil, the most glaring example of which is the Petrobras scandal, which is currently sweeping up corporations and politicians alike in its wake. Considering this increased emphasis on rooting out corruption, the authors noted it would be wise for companies operating in Brazil to pay careful attention to their operations there, to ensure compliance with Brazilian and other countries laws. That discussion concludes herein.
Companies operating in Brazil, and their in-house and outside counsel, have been watching its anticorruption enforcement environment evolve ever since Brazil's new Clean Companies Act came into effect on Jan. 29, 2014. The Act brought with it a new wave of anticorruption implications for companies operating in one of the largest economies in the world, with potential for civil or administrative liability for a wide range of corrupt activities. That can include fines of up to 20% of a company's gross revenue for the fiscal year ending prior to the initiation of the investigation, forcing a company to relinquish any benefits received from the illegal conduct, limiting a company from participating in public bidding processes or even forcing dissolution.
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