The will to continue the fight against institutional corruption in Brazil may be waning. From the perspective of The Man From FCPA, it appears that it is the beginning of the end for the seismic change which has come over the country starting with Operation Car Wash. Earlier this month, the Brazilian Federal Police announced they were shutting down the anti-corruption task force which has been at the center of Brazilโ€™s fight against bribery and corruption. In a statement, they said, the group that led the fight would be merged into the Federal Policeโ€™s current anticorruption division to more effectively โ€œfight against corruption and money laundering and facilitate the exchange of information.โ€ Of course, that is just bureaucrat-ese for โ€œwe are reigning you in.โ€

Reports note that the task force itself โ€œwarned the move could throttle investigations that have exposed systemic corruption among the countryโ€™s political and business elitesโ€ and called the move a โ€œclear setbackโ€ for their ongoing Car Wash and related investigations. Several factors led to the effectiveness of the task force before this move. One was its physical location away from the capital or other large city. A second and perhaps more important factor in its success was the โ€œremarkable degree of autonomyโ€ with which the task force operated allowing it to investigate both high-profile businesses and politicians in the country.

Thomas Fox has practiced law for over 40 years. Tom writes the daily award-winning blog, the FCPA Compliance and Ethics blog and founded the Compliance Podcast Network. Tom leads the discussion on AI in...