Anti-corruption Law takes effect in Brazil in January, 2014

Anti-corruption Law takes effect in Brazil in January, 2014

The anti-corruption law (effective January 28, 2014), called the “Clean Company Act” (CCA), which specifically prohibits bribery of foreign government officials and prohibits fraud, manipulation and bribery in connection with public tenders.

The act applies to corporate entities that operate in Brazil, including an entity’s directors, officers, employees and agents. If an entity is determined to be a Brazilian company, the CCA applies to that entity’s business operations around the world.

Before this Law only individuals could be punished for bribery and corruption. Liability extends to a company’s directors, officers and employees involved in unlawful acts, whether in Brazil or abroad.

Companies that resort to bribes face fines of up to 20% of their Gross Annual Revenue or a maximum of 60 million reals (USD 25,000).

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