Corporate Investigations Newsletter- August 2025

The Corporate Investigations Newsletter aims to provide information on the main media news, trends, cases, and legislation concerning compliance, white-collar crime, competition and international trade matters in Brazil and abroad. This newsletter is for informative purposes only, and should not be used for decision making. Specific legal counseling may be provided by our legal team.

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Compliance and Investigations, White-Collar Crime, Competition, and International Trade and Customs teams

Compliance And Investigations

Investigation into COP30 bidding fraud involves congressman, police officers, and high-value contracts

Justice Flavio Dino of the Brazilian Federal Supreme Court (“STF”) has authorized the launch of an investigation into a criminal organization suspected of defrauding a public procurement process related to the 30th Conference of the Parties to the United Nations Framework Convention on Climate Change (“COP30”), scheduled to take place in Belém. The investigation, led by the Brazilian Chief Prosecutor’s Office (“PGR”), indicates that the group allegedly orchestrated the involvement of companies connected to a federal congressman for the execution of a contract worth BRL 142 million. The bidding process was suspended following allegations of corruption, suspicious financial transactions, and signs of the misuse of funds for electoral purposes.

The consortium involved was formally qualified to carry out the work in September 2024. On the same day, a colonel of the Military Police (“PM”) – who served as the congressman’s personal security guard – withdrew BRL 6 million from a bank branch in Pará and attempted to meet with the state secretary of Public Works. Subsequently, he and one of the consortium partners were caught in the act while withdrawing nearly BRL 5 million, raising suspicions about the intended use of the funds. The PGR identified a network of PM officers who served as the congressman’s private security and carried out cash withdrawals on behalf of the companies, using lottery outlets and plastic bags to transport the money.

The Government of Pará stated that no payments were made to the companies under investigation and that the bidding process was formally revoked for technical reasons. Nevertheless, the PGR requested that the investigation be further expanded to determine whether the funds handled by the group may have originated from other public contracts. The inquiry remains under seal and involves, in addition to the congressman, the state secretary of Public Works and other public and private agents.

For more information, access the full article.

CGU and PF launch anti-fraud operation targeting federal contracts

On August 19, 2025, the Brazilian Office of the Comptroller-General (“CGU”) and the Federal Police (“PF”) launched Operation Kibali to investigate irregularities in the execution of two funding instruments between the former Ministry of Women, Family, and Human Rights and a third-sector organization. The agreements, totaling approximately BRL 3.8 million, were intended to provide professional training courses in computer science and graphic design. However, there was no evidence that the planned activities had been carried out, raising suspicions of misappropriation of public funds.

The investigation was initiated based on documentation submitted by the CGU and resulted in the issuance of search and seizure warrants in districts within Rio de Janeiro’s West Zone. The evidence points to crimes such as bid rigging, embezzlement, and criminal conspiracy. The case underscores the importance of coordinated efforts between oversight and investigative bodies, as well as the need for ongoing monitoring of the implementation of public policies funded with federal resources.

The lack of evidence regarding the contracted activities – along with signs of irregularities – reinforces the need to strengthen monitoring and accountability mechanisms in partnership with third-sector entities. Transparency in the management of these resources is essential to ensuring the effectiveness of social programs and maintaining public trust in government institutions.

For more information, access the full article.

STF reassigns inquiry into alleged fraud at INSS

On August 25, 2025, the STF reassigned, via drawing lots, the investigation report related to Operation “Sem Desconto” conducted by the PF, which investigates fraud involving associative discounts applied directly to the payroll of retirees and pensioners of the National Social Security Institute (“INSS”). Justice André Mendonça was selected as the new rapporteur of the case, replacing Justice Dias Toffoli, who had assumed the role of rapporteur without prior selection by lot.

The reassignment was ordered by the President of the STF, Justice Luís Roberto Barroso, following a submission by the Office of the PGR, which noted that Justice Dias Toffoli had not been formally assigned to the related inquiries, thereby lacking procedural prevention. The measure aims to ensure procedural legality and avoid the annulment of evidence already collected.

The investigations concern suspected operational irregularities by entities that granted discounts to associations and unions without clear authorization from the intended beneficiaries. The findings suggest the occurrence of crimes such as fraud, criminal association, and violations of the rights of insured individuals.

The case underscores the importance of proper procedural conduct and coordinated action among oversight and investigative bodies, particularly in matters involving the protection of the rights of retirees and pensioners. Transparency and respect for legal safeguards are essential to maintaining public trust in government institutions.

For more information, access the full article.

CGU publishes second edition of the Report on the Analysis of Sanctioning Criteria in Administrative Liability Proceedings

On August 26, 2025, the CGU released the second edition of the Report on Sanctioning Criteria in Administrative Liability Proceedings (“PARs”), reaffirming its commitment to transparency while enforcing Law No. 12,846/2013 (the “Anti-Corruption Law”). The study examined 159 adjudicated cases, detailing the criteria used to calculate fines imposed on companies involved in harmful acts against the public administration. The initiative seeks to ensure that the adopted parameters are proportional, effective, and capable of stimulating more comprehensive business practices.

Among the report’s key highlights are the effects of Decree No. 11,129/2022, which revised the sentencing criteria by assigning greater weight to aggravating factors such as the combination of harmful acts and senior management endorsement, while also reinforcing the role of integrity programs as a mitigating factor. The analysis, based on data from 159 imposed fines, revealed that few companies have taken steps to compensate for damages or to return undue advantages, underscoring the need for stronger commitment to remedy the harm caused. Nevertheless, even integrity programs implemented at a minimal level led to significant reductions in sanctions, although, on average, these reductions amounted to less than half of the potential provided for by the legislation.

For more information, access the full article  and the Report on the Analysis of Sanctioning Criteria – 2nd edition (2025).

White-Collar Crime

STF halts legal proceedings based on COAF data obtained without court authorization

The Federal Supreme Court (“STF”) has ordered the nationwide suspension of judicial proceedings concerning the use of financial data obtained from the Financial Activities Control Council (“COAF”) without prior judicial authorization.

The decision was issued on August 20, 2025, within the context of Extraordinary Appeal No. 1,537,165 – which was recognized as having general repercussion (Precedent No. 1404) – and addresses the constitutional boundaries governing access to banking information by oversight authorities.

The suspension, proposed by the Federal Attorney General’s Office (“PGR”), takes immediate effect and applies exclusively to cases in which the Judiciary Branch has either annulled or imposed undue restrictions on the use of financial data in criminal investigations. Justice Alexandre de Moraes clarified that proceedings in which the reports have already been validated will follow their regular course.

The discussion centers on the admissibility of evidence derived from financial reports issued by COAF, requested by the Federal Prosecutor’s Office and police authorities without prior judicial authorization or the initiation of a formal investigation.

The merits of the case are still under review, and the final ruling may have nationwide implications for investigations and criminal proceedings – particularly those involving financial crimes and money laundering.

For more information, access the full report.

STJ affirms judges’ legitimacy to use defendants’ social media activity to justify preventive detention

In a unanimous decision issued on August 08, 2025, the Fifth Panel of the Superior Court of Justice (“STJ”) decided on the legality of accessing social media platforms and using publicly available posts as part of the reasoning for ordering preventive detention.

The decision was rendered within the context of an exception of suspicion filed by the defense against a judge who had accessed the defendant’s social media profiles to verify information used in the accusation.

The Panel decided that public content available on social media may be considered valid evidence, provided it is used in a proportional and well-reasoned manner. The rapporteur, Justice Joel Ilan Paciornik, rejected any illegality or partiality in the conduct of the trial court judge, noting that:

“Specifically regarding the fact that the magistrate personally conducted the consultation, the measure reflects procedural economy, given the ease of access to publicly available information on social media. Additionally, if the magistrate is empowered to order investigative measures, nothing prevents them from carrying it out directly, by analogy with the provision outlined in Article 212, sole paragraph, of the Brazilian Code of Criminal Procedure (CPP)“.

The decision reinforces the Court’s position that the digital environment may serve as a legitimate source of evidence in criminal proceedings, provided that constitutional and legal boundaries are duly observed.

For more information, access the full report.

Operations Hidden Carbon, Quasar, and Tank: Brazil’s largest crackdown on organized crime in the fuel, fintech, and investment fund sectors

On August 28, 2025, the São Paulo Public Prosecutor’s Office, in coordination with the Federal Police, the Brazilian Federal Revenue Office (“RFB”), and the Ministries of Justice and Finance, launched three simultaneous operations that uncovered the involvement of organized crime in fraud and money laundering schemes linked to fintechs, investment funds, and the fuel sector.

• Operation Hidden Carbon (“Operação Carbono Oculto”), coordinated by the São Paulo Public Prosecutor’s Office, targeted a network of fuel distributors and gas stations involved in fuel adulteration and tax evasion practices. The group is estimated to have transacted approximately BRL 52 billion, using fintechs as “parallel banks” to facilitate money laundering schemes.
• Operation Quasar, conducted by the Federal Police, investigated the fraudulent management of financial institutions linked to criminal organizations, resulting in the freezing of approximately BRL 1.2 billion in assets.
• Operation Tank, also conducted by the Federal Police, dismantled a money laundering scheme involving approximately BRL 23 billion, carried out through shell companies and gas stations in Paraná. The scheme included practices such as fuel adulteration and pump fraud.

The investigations reveal that fintechs have been used as “parallel banks” for asset concealment and shielding, taking advantage of regulatory gaps in the sector. The lack of normative rulings has hindered the ability to trace financial flows and to individually identify the amounts transacted by each client, thereby impairing the effectiveness of oversight and supervisory authorities.

Authorities also identified 40 investment funds used to conceal illicit assets, including sugar mills, trucks, luxury real estate, and a residence in Trancoso valued at approximately BRL 13 million.

Given the complexity of the scheme uncovered, the operations led to the identification of multiple criminal offenses, including money laundering, tax evasion, fraudulent management, and crimes against the economic order, particularly due to fuel adulteration practices.

For more information, access the article of the Federal Police and the Public Prosecutor’s Office in full.

New Federal Revenue regulation classifies fintechs as financial institutions

On August 29, 2025, the RFB issued RFB Normative Instruction No. 2,278/2025, following the launch of police operations that exposed the use of fintechs by criminal organizations for money laundering and asset concealment. The regulation equates payment institutions with traditional financial institutions within the National Financial System for the purpose of complying with the same reporting standards and ancillary obligations.

“Fintechs have been used for money laundering in major operations targeting organized crime due to a regulatory vacuum, as they are not subject to the same transparency and reporting obligations that have applied to financial institutions in Brazil for over two decades,” stated the RFB in a press release issued following the operations.

The measure, which seeks to strengthen oversight and combat financial crimes, entered into force immediately and comprises four articles focused on enhancing transparency and preventing offenses against the tax system – particularly those involving organized crime, such as money laundering, asset concealment, and fraud.

To the RFB, the measure strengthens control mechanisms and limits the use of digital financial structures for illicit purposes, making it more difficult to use digital financial structures for illegal purposes, which until now were not subject to transparency obligations and information disclosure.

For more information, access the Normative Instruction in full.

New decree establishes enhanced framework for combating cybercrime

On August 05, 2025, Decree No. 12,574 was published in the Federal Official Gazette, instituting the new National Cybersecurity Strategy (“E-Ciber”). The initiative seeks to enhance the protection of Brazil’s cyberspace and has direct implications for the prevention and suppression of digital crimes affecting companies, public entities, and individuals.

The decree sets forth guidelines for formulating public policies on information security, with an emphasis on system integrity and the mitigation of cyber risks.

E-Ciber marks a significant advancement in the structuring of preventive measures against offenses such as corporate system intrusions, theft of sensitive data, digital fraud, and ransomware attacks.

The strategy also underscores the importance of training criminal prosecution authorities and promoting coordinated action through cross-sectoral integration, aimed at preventing and combating offenses perpetrated in the digital environment. In addition, the new national policy seeks to promote a culture of information security within the private sector, encouraging companies to implement protocols for protection, auditing, and incident response.

For more information, access the full report.

Competition

CADE imposes preventive measure to suspend the “Soy Moratorium”

On August 18, 2025, the General Superintendence of the Administrative Council for Economic Defense (“CADE”) imposed a preventive measure against the Brazilian Association of Vegetable Oil Industries (ABIOVE) and more than 30 soybean exporting companies (trading companies), ordering the suspension of the agreement known as the “Soy Moratorium.”

Initially signed in 2006, the parties to the agreement committed not to trade soybeans sourced from deforested areas in the Legal Amazon forest after July 2008. The initiative was a response to pressure from civil society and the international market, particularly following Greenpeace’s report of expanded deforestation for soybean cultivation in the region.

According to CADE’s General Superintendence (the “GS”), there is evidence that the Soy Moratorium could result in anticompetitive effects by allegedly enabling the exchange of sensitive information among competitors, which would facilitate price coordination. As a result, the GS ordered the immediate suspension of any commercial data sharing among signatories regarding soybean purchases.

On August 25, 2025, however, the Federal Courts suspended the preventive measure. The 20th Federal Court of Brasília ruled that setting aside the Soy Moratorium without a thorough review by CADE’s Tribunal – not only by the GS – would be disproportionate and inappropriate, especially considering the environmental and social benefits associated with the agreement, such as fostering sustainable development in the Legal Amazon.

ABIOVE filed a voluntary appeal against the preventive measure, which is currently waiting for CADE’s Tribunal ruling.

For more information, please access: SG/CADE opens administrative proceeding and imposes preventive measure against “Soy Moratorium”

CADE rejects Pirelli’s proposed minimum advertised price policy

On August 6, 2025, during its 252nd Ordinary Ruling  Session, CADE’s Tribunal reviewed a consultation submitted by Pirelli regarding a marketing plan that included a Minimum Advertised Price (“MAP”) policy, concluding for its unlawfulness.

The proposal conditioned the receipt of marketing funds by resellers on meeting qualitative targets and publishing minimum prices in advertisements.

Pirelli argued that the policy was unilateral, did not control actual resale prices, and aimed to preserve brand image by avoiding advertisements with “extremely low” prices. The company claimed that the policy prevented distortions in consumer perception of product value.

Reporting commissioner Diogo Thomson classified the practice as per se illegal, emphasizing that MAP policies interfere with price transparency and information availability, hindering comparisons and impairing consumer decision-making. The commissioner  also noted that this was the third time CADE reviewed a similar proposal in the tire sector, calling for greater clarity in case law on the matter and warning against authorizing, through consultation, practices already recognized as anticompetitive.

The other Tribunal members unanimously upheld the commissioner’s vote. CADE’s Acting President, Gustavo Augusto Freitas, dissented only regarding the burden of proof, arguing that CADE must demonstrate the anticompetitive effects.

For more information, access the 252nd Ordinary Trial Session broadcast on CADE’s YouTube channel.

Standard Essential Patents: CADE study examines antitrust implications across jurisdictions

On August 6, 2025, CADE’s Department of Economic Studies published a technical report on Standard Essential Patents (SEP), aiming to consolidate information on the topic and promote more in-depth antitrust reviews.

The document outlines essential concepts, details licensing practices and royalty pricing methods, and reviews national and international case law, with emphasis on “FRAND” commitments (fair, reasonable, and non-discriminatory). The study highlights divergences and convergences among jurisdictions regarding the interpretation of these commitments, the granting of injunctions, and the determination of patent essentiality.

It also indicates that certain SEP licensing practices may raise antitrust concerns for both patent holders and implementers. Among the risks are:

• Excessive royalty charges due to the inability to substitute standardized technology (hold-up);
• Unjustified refusal to pay for or negotiate licenses (hold-out);
• Royalty stacking from multiple patent holders; and
• Sham litigation.

The report also addresses issues such as patent thickets (excessive overlapping) and patent trolls (companies that file lawsuits without actually producing).

In Brazil, the study highlights two cases reviewed by CADE:

• TCT Mobile’s complaint against Ericsson (2014), involving alleged abuse in royalty charges for 3G technology; and
• Motorola and Lenovo’s complaint against Ericsson (2024), concerning alleged abuse of dominance in royalty charges for 5G technology.

For more information, please access CADE contributions: Essential patents.

CADE imposes provisional remedy against Unimed Blumenau for non-reported transaction

On August 27, 2025, CADE imposed a preventive measure against  Unimed Blumenau for acquiring Hospital Santa Catarina without previous filing to CADE.

The ruling requires Unimed Blumenau to maintain contracts with healthcare providers on an equal and non-discriminatory basis and to reinstate terminated accreditations following the transaction, except where there is legitimate commercial justification. Additionally, the operator must inform beneficiaries of all measures applied to comply with CADE’s decision, under penalty of a daily fine of BRL 50,000.

The GS launched the investigation in October 2024 after receiving a complaint through the “Clique Denúncia” channel (available on CADE’s website). The case is under review by CADE’s Tribunal, with commissioner Victor Oliveira Fernandes assigned as the reporting commissioner.

For more information, please access: CADE imposes provisional remedy against Unimed Blumenau for non-notified transaction

International Trade and Customs

New investigations into trade defense and matters of public interest

In August, the Brazilian Secretariat of Foreign Trade (“SECEX”) initiated new trade defense and public interest investigations, including an anti-dumping investigation, a review of anti-dumping duties, and a public interest assessment.

Original anti-dumping investigation into imports of glass fiber from China and Egypt

• Opening: Circular Letter No. 60, of August 05, 2025,
• Product: Glass fiber, Type E and/or E-CR, in slightly twisted filaments (roving), with a linear density of 100 g/km or more, commonly classified under subitem 7019.12.90 of the MERCOSUR Common Nomenclature (“NCM”).

Sunset Review of the anti-dumping duty applied to imports of PVC-S resin from China

• Opening: SECEX Circular Letter No. 63, of August 13, 2025
• Product: Polyvinyl chloride resins produced via suspension process (PVC-S), commonly classified under subitem 3904.10.10 of the MERCOSUR NCM.

Initiation of public interest investigation related to the anti-dumping duty applied to imports of GNO steel from Germany, China, South Korea, and Chinese Taipei. 

• Opening: SECEX Circular Letter No. 67, of August 26, 2025
• Product: Flat-rolled silicon steel, commonly referred to as non-oriented magnetic steel (“GNO”), classified under NCM subitems No. 7225.19.00 and No. 7226.19.00

United States initiates anti-dumping and countervailing duty investigations into imports of high-purity dissolving cellulose from Brazil and Norway

On August 15, 2025, the United States International Trade Commission (USITC) initiated the preliminary phase of anti-dumping (AD) and countervailing duty (CVD) investigations – No. 701-TA-777 and No. 731-TA-1762-63 – to determine whether imports of high-purity dissolving pulp (HPDP), commonly classified under subitem 4702.00.00 of the Harmonized Tariff Schedule of the United States (HTSUS), are being unfairly subsidized or dumped by Brazil and Norway. The petition was filed on August 12, 2025, by U.S. producer Rayonier Advanced Materials, Inc. and the United Steelworkers union. The investigation may lead to the imposition of anti-dumping and countervailing measures on Brazilian exports of the product.

Access the article in full.

Section 301: Brazilian Government submits its defense and challenges potential U.S. trade sanctions

On August 18, 2025, the Government of Brazil forwarded to the Office of the U.S. Trade Representative (USTR) its official comments in the framework of the investigation conducted by the U.S. government under Section 301 of the Trade Act, which evaluates Brazilian trade practices.

On September 03, 2025, a hearing was held during which the parties were given the opportunity to present their statements.

Following the hearing, the proceeding moves forward to the next steps outlined under Section 301 of the Trade Act. Brazil’s submission and the arguments presented by the parties will be taken into consideration by the USTR, which is expected to assess the evidence gathered before issuing any decision on the case.

Access the article in full.

Brazil initiates WTO consultations against the United States over tariffs imposed on Brazilian products

On August 05, 2025, Brazil formally requested the initiation of consultations with the United States at the World Trade Organization (“WTO”) to address the additional tariffs imposed on Brazilian products. These tariffs, which may reach up to 50%, were justified by the United States as a response to an alleged national emergency and perceived threats to its security.

The United States accepted Brazil’s request for consultations but reaffirmed the rationale behind the imposition of the tariffs, maintaining that matters related to national security fall outside the scope of resolution by the WTO’s Dispute Settlement System. The request for consultations marks the formal initiation of the dispute settlement process. During the consultations, Brazil may present additional information and arguments in an effort to reach a resolution or to establish a significant precedent for future international disputes. If no agreement is reached within 60 days, Brazil may request the establishment of a panel to adjudicate the trade dispute, in accordance with the rules provided for in multilateral agreements.

Access the article in full.

Federal Government launches Brasil Soberano to shield exporters and workers from U.S. trade tariffs

In August 2025, the Brazilian Government announced the Brazil Sovereign Plan (Brasil Soberano), a package of emergency measures aimed at mitigating the impact of the 50% tariffs imposed by the United States on Brazilian products.  The initiative, formalized through Provisional Measure No. 1,309/2025, encompasses financial, tax, and diplomatic support measures aimed at preserving the competitiveness of Brazilian exports, safeguarding jobs, and strengthening Brazil’s international positioning within the current geoeconomic context. 

The Brazil Sovereign Plan is structured around three main pillars:

1. Support for the productive sector

• BRL 30 billion from the Export Guarantee Fund (“FGE”) will be allocated to credit lines with affordable rates, prioritizing companies most affected by the tariffs. 
• Exceptional extension of the drawback period, granting exporters additional time to fulfill their commitments without incurring penalties. 
• Deferral of federal taxes for affected companies, allowing the postponement of tax payments. 
• Extension of the Special Regime for the Reintegra Program (Tax Reimbursement for Exporting Companies), with increased tax reimbursement rates for exporters impacted by the surcharges. 

2. Worker protection

• Establishment of the National Employment Monitoring Chamber to oversee and safeguard jobs across the productive chains of the affected sectors. 
• Measures related to collective bargaining, conflict mediation, and the implementation of emergency mechanisms – such as lay-off and temporary suspension of employment contracts – in compliance with the applicable legislation. 

3. Commercial diplomacy and multilateral engagement

• Intensification of negotiations aimed at opening new markets and reducing Brazil’s export dependence on the United States. 
• Advancement of trade agreements with the European Union, the European Free Trade Association (EFTA), the United Arab Emirates, Canada, India, and Vietnam. 

Access the article in full:

Government launches Brazil Sovereign Plan to protect exporters and workers from US surcharges — Presidency of Brazil

Provisional Measure No. 1,309, of August 13, 2025