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On August 1, 2013, Brazil’s President Dilma Roussef approved the country’s new Anti-Bribery Law. Following Presidential approval, the new law (Law 12,846/2013) was published on the Official Gazette on August 2, 2013 and it will come into force in 180 days after that date. The main features of the new Anti-Bribery Law are described in our alert of July 5, 2013.
President Dilma Roussef vetoed three specific provisions of the bill: a) limitation of fines to the amount of the contract. This means that fines can reach as high as 20% of the previous year’s gross revenue of the legal entity. If that amount cannot be calculated, fines can reach up to R$ 60 million, approximately US$ 26 million. With this veto, fines are no longer capped by the amount of the contract; b) need for the government to show intent or fault in applying certain specific sanctions; and c) a feature that would give more favorable treatment to companies depending on the extent of participation of government officials in the wrongdoing. Companies should be alert to the impacts of the new law. While it has similarities with the FCPA and the UKBA, there are important differences that should be taken into account. These include the scope of the new law (subjected entities, prohibited acts) and the fact that it is based on a strict liability regime. Our alert of July 5, 2013 describes some of the key differences and outlines how companies should prepare for the new law. We offer our unofficial translation into English of the full text of Law 12,846/2013. The Compliance Team of Trench, Rossi e Watanabe Advogados is available to discuss any aspects of the Brazil Anti-bribery Law and to assist companies to prepare for when it comes into force. WARNING This Legal Alert is an informative publication of Trench, Rossi e Watanabe. Its purpose is to highlight relevant issues in the legal area and should not be considered as a legal opinion on any subject. For legal opinion and further information, please, do not hesitate to contact us. For further information, please contact: Esther Flesch Bruno Maeda Érica Sarubbi Carlos Ayres |
