Brazil Corruption laws-Corporate Liability

Monday, 5 August, 2013

Brail Corruption laws- corporate to be liable

According to a new law passed, very rapidly in response to ongoing demonstrations in Brazil, Corporates with employees found to have been involved in corruption (bribery etc) will be found liable to sanctions including:

20% of previous annually reported revenues capped at US$26.22m

Asset confiscation

Suspension of operations

Dissolution

Contract witholding

Blacklisting

Given the that this has legislation ahs been implemented to deal with massive frustration by general public it will be interesting to see if the first big cases (if any) are from recently privatised domestic indutries. Or will cross border investors be targetted as seen as being given preferential treatment over local firms?

http://en.mercopress.com/2013/08/03/brazil-passes-strict-law-on-bribing-extending-liability-to-staff-and-companies-involved

Courtesy of David Castillo Dominici at freedigitalphotos.net