Brazil’s New Clean Companies Act Continues Global Fight Against Corruption

After years of legislative limbo, and in response to growing social unrest, on Friday, August 2, 2013, President Dilma Rousseff signed into law the Clean Companies Act (the “Act”)—Brazil’s first sweeping anti-corruption law targeting corporations. The Act addresses both bribery of foreign government officials by Brazilian companies and bribery of local officials by any company. The law will take effect in 180 days. The Act is the latest development in the growing global trend of increasing legislation to combat corruption.

THE CLEAN COMPANIES ACT -

The Act establishes liability for companies that engage in bribery in Brazil or overseas. Prior to the new law, only individuals could be punished for corruption under Brazil law. The Act makes a company strictly liable for bribes paid on its behalf by its employees, without the need to establish: (1) the individual employee’s liability or (2) that the company’s management or directors had a corrupt intent. The Act follows Brazil’s long-held tradition of not recognizing criminal liability for corporate entities, imposing only civil and administrative liability.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×