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Legal Update

Brazilian Senate Approves Anti-Corruption Law

10 July 2013
Tauil & Chequer Legal Update

On July 4, 2013, the Brazilian Senate approved the Bill of Law 6.826/2010, which imposes civil and administrative liability on legal entities for corrupt practices. The Bill of Law is still subject to presidential sanction, and if approved, the companies operating in Brazil shall update their compliance policies to meet all the requirements of the new law.

The Bill of Law establishes (i) all corrupt practices and acts against domestic and foreign public administrations, such as the offer or promise of an undue advantage to a public official; to defraud a public bidding process or to finance illegal acts as provided in this Bill of Law; (ii) administrative fines varying from 0.1% to 20% of the gross revenue of the legal entity or between BRL 6,000.00 and BRL 60 million; and (iii) judicial penalties, which include, the disgorgement of assets, rights or values; suspension or prohibition of the activities of the legal entity; compulsory dissolution of the company and prohibition from obtaining incentives, subsidies, grants, donations or loans from public authorities. 

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