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The FCPA Blog - The FCPA Blog - Focus on Latin America: Brazil at a Crossroads (Part One)                                 ...
The FCPA Blog - The FCPA Blog - Focus on Latin America: Brazil at a Crossroads (Part One)     RECENT HEADLINES            ...
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The FCPA Blog - Focus on Latin America: Brazil at a crossroad


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The FCPA Blog - Focus on Latin America: Brazil at a crossroad

  1. 1. The FCPA Blog - The FCPA Blog - Focus on Latin America: Brazil at a Crossroads (Part One) ethiXbase Search Archive The Editors In the News Be A Sponsor Legal Benchmarking Survey The FCPA Blog News And Views About The United States Foreign Corrupt Practices Act « EXTRA CREDIT: CHINA SCHOOL SELLS BRAIN - BOOSTING IV SPONSORS DRIPS TO STUDENTS | MAIN | HOW BIG IS GRAND CORRUPTION ? » Focus on Latin America: Brazil at a Crossroads (Part One) Tuesday, May 15, 2012 At 12:28AM By Andy Spalding Wal-mart reporting has shone a spotlight on endemic corruption in Latin America. But although Mexico now dominates the headlines, that country is neither Latin America’s biggest economy nor its most urgent corruption story. The country that finds itself at truly critical moment in its anti- corruption effort is Brazil. So many of us have read, so many times, that although Brazil has never been a member of the OECD, it was among the original 1997 signatories to the OECD Convention on Combating Bribery. That’s true, but ETHIXBASE it’s misleading. Brazil’s implementing legislation of 2002 conspicuously Home lacked a legal principle that has elsewhere proven a cornerstone of anti-   bribery enforcement: corporate liability. Brazil at present only holds What is ethiXbase? natural persons liable; hardly surprising, then, that the statute lays Meet the Team   dormant. Law Firm Directory   Free Trial All of that might now change. And it might not. On March 23rd, a CONNECT special committee of Brazil’s lower legislative house is scheduled to vote on bill no. 6826/2010, the Clean Company Act. It’s an omnibus white- Twitter collar crime bill, but three provisions are especially critical to the Facebook international anti-bribery movement. First, it establishes the liability of legal persons for overseas bribery. Brazilian law traditionally doesn’t recognize criminal liability for corporations (just as common law countries historically did not), so the bill is limited to civil and administrative liability (which is fully consistent with the OECD The FCPA Blog delivered to your inbox. Convention). Second, the bill would create, for the first time, cooperation credit for voluntary disclosure. Though another Enter your email address: foundational piece of effective anti-bribery enforcement, voluntary disclosure is now almost unheard of in Brazil. Third, the Clean Company Act would establish a new policy of considering at the penalty phase of Subscribe enforcement whether a corporate defendant had a compliance program Delivered by FeedBurner in place. Supporters hope this provision could stimulate the growth of Brazil’s now-fledgling compliance industry.[15-05-2012 10:55:53]
  2. 2. The FCPA Blog - The FCPA Blog - Focus on Latin America: Brazil at a Crossroads (Part One) RECENT HEADLINES The devil is in the procedural details. The special committees Extra Credit: China School Sells Brain- affirmative vote would advance the bill to Brazil’s Senate, unless a small Boosting IV Drips to Students voting bloc is then able to force a plenary session of the lower house. Word on the street is that voting for a plenary session would be a stall Focus on Latin America: Brazil at a Crossroads (Part One) tactic, and a highly effective one; it could delay further consideration of the bill for many years, all but killing it. How Big Is Grand Corruption? SL Industries Gifts and Entertainment In this highly divisive political season, here’s an issue where both sides Disclosure can find true common ground. U.S. businesses should support the Brazilian bill because it helps put its South American competitors The Hunt For The Siemens 8 (against whom U.S. companies may sometimes struggle to compete in Foreign Offical Challenge On Appeal countries like Mexico) on a so-called “level playing field.” Just as obviously, corruption law advocates should likewise support this We Chat About China extension of meaningful anti-bribery law.   New China-Related Investigation Graft, Violence In China Hospitals But the May 23rd vote has implications well beyond Brazil, or Latin America, or even the Western Hemisphere. We’ll spend a couple posts To Mexico, from Nigeria, via Kazakhstan: discussing why. Stay tuned.  On the Trail of a Great Idea (Final Installment) __________________ What Is An Effective Compliance Andy Spalding is a contributing editor of the FCPA Blog. He teaches Program? international business law at the Chicago-Kent College of Law. Facilitation: A Jury Question Effective June 1, he’ll be an Assistant Professor at the University of Richmond School of Law. Noble Execs Fight SEC Charges There Are No Good Bribes The FCPA Blog | Post a Comment | Share Article Email Article Print Article Permalink In New Class Action Complaint, Sam tagged Andy Spalding, Brazil, Corporate Liability, Mexico, OECD, Walmart Walton Speaks BOOKS READER COMMENTS There are no comments for this journal entry. To create a new comment, use the form below. POST A NEW COMMENT Lessons Learned on Compliance and Ethics: The Best from the FCPA Enter your information below to add a new comment. Compliance and Ethics Blog by Thomas Fox My response is on my own website » Author:   Corruption, Crime and Compliance Author Email (optional): by Michael Volkov   Author URL (optional):     Be My Guest: Bylined Posts from the Post: ↓|↑   FCPA Blog   by Various Authors         Letters to a Young Lawyer, 100th   Anniversary Edition All HTML will be escaped. Hyperlinks will be created for URLs by Arthur M. Harris automatically.[15-05-2012 10:55:53]