During the recent opening of the ordinary sessions of the
National Congress, President Macri promised substantial amendments
to criminal legislation, in particular the draft bill introduced to
Congress in October 2016, that establishes corporate criminal
liability on corruption crimes (the Draft Bill).
The Draft Bill establishes penalties for legal entities who have
participated in any offense against the public administration
and/or transnational corruption. Thus, the Draft Bill would finally
adapt our legal system to the international standards.
Furthermore, the Draft Bill intends to prevent cases of
corruption and accelerate the existing investigations on corruption
offenses, in order to improve effectiveness of punishment to those
responsible for such offenses.
In this sense, such Draft Bill also provides penalties that
includes fines of up to twenty percent (20%) of the annual gross
income of the year prior to the alleged offense for which the
company would be sanctioned.
As a general guideline for the penalties, judges shall take into
consideration, among other aspects, the level and consistency of
the measures taken to control and supervise any such corrupt
offense by an adequate compliance program (programa de integridad
If the Draft Bill becomes into Law, the decisions within the
company would consider the implementation of the adequate measures
to prevent, detect and alert the authorities of any criminal
offenses, such as the codes of ethics, periodic trainings,
hot-lines available, and any other procedure that would allow the
company to obtain information related to third parties' and/or
regular and/or occasional business partners.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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On May 26, 2016, the Brazilian Administrative Council for Economic Defense (CADE) launched Leniency Guidelines and amended the leniency provisions included in its Internal Rules...
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