The Full Panel of The Federal Court of Accounts (TCU) approved a recommendation issued by one of its Ministers for the creation of a committee composed of members of the Federal Prosecutor's Office (MPF), the Ministry of Transparency, Inspection and Comptroller General of the Federal Government (CGU), Attorney-General's Office (AGU) and the Administrative Council for Economic Defense (CADE), in addition to TCU itself.

The TCU recognizes that the lack of coordination between the authorities in charge of Anti-Corruption enforcement creates uncertainties and compromises the effectiveness of the leniency agreements as per Law No. 12,846/2013 (Anti-Corruption Law) signed with each competent authority individually.

The discussion sends an important message from the TCU about the indispensability of coordinated participation of all interested parties in the negotiation and execution of leniency agreements.

Anti-Corruption enforcement may trigger the TCU's participation in regard to compensation of any damages suffered by the Federal Treasury and debarment of individuals and entities in violation of the Law.

Observations in this update about Brazilian law are by Tauil & Chequer Advogados and are not intended to provide legal advice. Any entity considering the possibility of a transaction must seek advice tailored to its particular circumstances.