Business Corruption in Brazil

Corruption represents a constraint to business in Brazil. Corruption is especially likely in the tax administration, public procurement and natural resource sectors. A recent large-scale corruption scandal holds the state-run oil company Petrobras at the center. The Clean Companies Act is one of the toughest anti-corruption laws in the world, but its enforcement is inconsistent. Under the Act, bid rigging and fraud in public procurement, direct and indirect acts of bribery, and attempted bribery of Brazilian public officials and of foreign public officials are illegal. The Act holds companies responsible for the corrupt acts of their employees and introduces strict liability for those offences, meaning a company can be liable without finding of fault. Brazilian law makes no distinction for facilitation payments , meaning companies could be at risk for engaging in such practices. Giving gifts is illegal and not necessary when doing business and establishing relationships. Businesses are advised to consider the Portal's compliance guide for Brazilian laws.

Clean Companies Act Summary
Compliance Guide

November 2015
GAN Integrity Solutions