Brazil Gets Praise and a Push from OECD on Anti-Bribery Efforts

Brazil is getting both a pat on the back and a push forward from the Organisation for Economic Co-operation and Development regarding its recent anti-bribery efforts. Representatives of the multi-natioal coalition said this week that Brazil “must build on the positive momentum” started with its new Corporate Liability Law and its first bribery-related indictments.

The comments come with the release of a new a report on Brazil’s anti-corruption efforts by OECD’s Working Group on Bribery. Although noting the nation’s progress, that report expresses concern about Brazil’s "proactivity in detecting, investigating and prosecuting foreign bribery.” Foreign bribery investigations were opened in only five cases during the 14 years since Brazil joined the OECD. Of these investigations, only three are ongoing; two are far from reaching the prosecutorial stage. The report expresses concern  Concerns were also raised that Brazil’s enforcement efforts may be hampered by a statute of limitation which may result in the dismissal of lightly-sentenced foreign bribery cases and an absence of private-sector whistleblowers’ protection.

Among the recommendations made in the report:

That Brazil be more proactive in detecting, investigating and prosecuting foreign bribery;

That it clarify its new Corporate Liability Law, particularly in relation to the procedure to establish liability and impose sanctions;

 A follow-up on the “broadened arsenal” available to the Brazilian authorities to encourage self-reporting and uncover foreign bribery, including cooperative and leniency agreements with individuals and companies;

 Continuing to encourage companies, including small- and medium-sized enterprises, to develop and adopt adequate internal controls, ethics, and compliance systems, to prevent and detect foreign bribery;

 Adopting comprehensive whistleblower protection for private-sector employees to protect those who report foreign bribery.

The OECD’s Working Group on Bribery is comprised of its 34 member countries and Argentina, Brazil, Bulgaria, Colombia, Latvia, Russia and South Africa.