Corporate Investigations Newsletter – May 2026

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.

Enjoy reading!

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

US designates criminal organizations in Brazil as terrorists; move calls for increased vigilance from Brazilian companies

The US Department of State has designated Brazilian criminal organizations Comando Vermelho and Primeiro Comando da Capital (PCC) as Specially Designated Global Terrorists (SDGTs) and announced the intention to designate both groups as Foreign Terrorist Organizations (FTOs), effective June 5, 2026. The government’s press release argues that the influence of these violent organizations extends far beyond Brazil’s borders, which would warrant its inclusion in the United States’ fight against terrorism.

Grounded in the Immigration and Nationality Act and Executive Order 13224, this designation allows the US government to impose financial sanctions, freeze assets, and expand mechanisms to restrict funding flows.

New compliance opportunities

From a compliance perspective, designation as an FTO carries immediate legal consequences under US law, particularly regarding the liability of individuals and companies for “material support.” This broad concept refers to a strict set of statutes that make it a serious crime to provide financial aid, services, or commercial support to terrorist groups.

In practice, the measure increases compliance risks for Brazilian companies with exposure to the U.S. market, and has three significant effects:

• Stronger mechanisms for screening and monitoring counterparties to ensure compliance and avoid sanctions.
• Increased need for in-depth due diligence, especially in M&A transactions, financing, and investments in sensitive sectors or regions.
• Intensified scrutiny of supply chains, especially where these organizations have territorial influence.

The measure may also increase scrutiny by financial institutions and international business partners in transactions involving sectors, regions, or counterparties deemed high risk. This may lead to additional due diligence requirements, trade restrictions, or even the need to reassess certain business relationships.

Enforcement: greater exposure to criminal investigations

The measure also highlights the need to manage criminal sensitivity issues that may link legal entities and their representatives to money laundering or organized crime investigations. Although the designation does not change Brazil’s criminal code, it tends to increase foreign authorities’ heedfulness and strengthen international cooperation mechanisms, the sharing of financial intelligence, and regulatory scrutiny.

Especially when there is a connection to US authority – such as transactions in US dollars, financial institutions subject to US regulation, or corporate structures with an international presence – there may be a significant increase in the potential for sanctions, operational restrictions, and enforcement measures. This effect is even more pronounced for companies that conduct transactions in US dollars or operate within multinational structures that follow US regulatory standards, signaling a trend toward intensified regulatory and reputational monitoring.

Although the designation does not directly alter Brazil’s legal framework, it significantly increases companies’ exposure to US enforcement, transforming risks previously viewed as operational – such as indirect interactions with third parties or operations in certain locations – into potentially significant legal risks.

For more information, see the full press release.

CGU guide strengthens efforts against corporate corruption and organized crime

The Brazilian Office of the Comptroller-General (CGU) has announced an initiative to strengthen efforts to promote integrity and protect the business environment from organized crime: the Guide for Companies on Managing Risks Associated with Criminal Organizations – developed by the International Chamber of Commerce (ICC) Brazil, with support from the CGU.

The guide helps companies identify, prevent, and mitigate risks posed by criminal organizations such as PCC and Comando Vermelho across the economy, with a focus on integrity, governance, and risk management. The CGU emphasizes that keeping organized crime out of business operations protects competition, strengthens corporate reputation, and preserves the integrity of company structures.

The guide also notes that these groups now employ increasingly sophisticated methods to penetrate the formal economy, such as legitimate business structures and commercial relationships, making it more complex to detect and mitigate these risks. In this context, the initiative emphasizes the need for more structured and integrated risk management approaches that extend beyond traditional controls.

With growing national and international regulatory attention to this issue, the guide demonstrates that companies must take a proactive stance to identify and mitigate such risks, especially in supply chains and operations.

See the full article or the complete guide for more information.

Operation Mare Liberum: Brazilian authorities dismantle billion-real corruption scheme in Rio de Janeiro

In April, Brazil’s Federal Revenue Service, Federal Public Prosecutor’s Office (MPF), and Federal Police (PF) launched Operation Mare Liberum to dismantle a billion-real corruption scheme involving customs inspections at the Port of Rio de Janeiro.

The investigation revealed a structured criminal group composed of public servants, customs brokers, and businesspeople who conspired to expedite the clearance of imported goods through systematic bribe payments. Authorities executed 45 search-and-seizure warrants and, by court order, suspended Federal Revenue Service employees.

Authorities explain that the group manipulated customs controls to release goods even when the cargo and the declared information did not match. Investigations indicate that approximately 17,000 import declarations may have been involved, corresponding to approximately BRL 86.6 billion in goods during the period under investigation.

This operation underscores the importance of vigilance when interacting with public officials in sensitive roles, especially when regulatory or operational approvals are involved. The probe also spotlights the role of third-party intermediaries in facilitating illicit schemes and how seemingly legitimate structures can manipulate public controls. The case draws attention to the importance of robust due diligence, continuous monitoring, and effective controls over critical processes.

See the full article for more information.

CGU enforces Clean Company Act to sanction organizations for corruption, fraud, and illegal acts

On May 1, 2026, the Brazilian Office of the Comptroller-General (CGU) published administrative sanctions against four companies and entities for corruption, fraud, and other illegal acts against the government under the Clean Company Act (Law No. 12,846/2013).

The penalties total more than BRL10 million, and the companies must also publish the most sanctioning decisions in widely circulated media outlets. These decisions result from CGU’s investigations into several matters, including irregularities in public works, fraud in compensation payments, and the misuse of confidential data.

For instance, Operation Meandros uncovered compensation fraud targeting fishers, while Operation Rolo Compressor exposed irregularities in public works procurement that included bribes to public officials. In another case, the CGU held entities accountable for issuing professional licenses irregularly, enabling improper access to public funds.

These decisions emphasize the CGU’s role in holding companies accountable for acts against the government and demonstrate the Clean Company Act’s effects across different sectors. These cases highlight recurring risks associated with improper interactions with public officials, the involvement of intermediary entities, and the use of seemingly legitimate structures to facilitate fraud, underscoring the need for robust controls over third parties, internal processes, and the use of public resources.

See the full article for more information.

COAF fines companies in the luxury and jewelry sectors more than BRL 6.4 million

The Council for Financial Activities Control (COAF) imposed fines totalling BRL 6.4 million on companies in the luxury goods sector and the jewelry, gemstones, and precious metals trade. The sanctions followed the adjudication of five Administrative Sanctioning Proceedings (PAS) on April 14, 2026.

These sectors fall directly under COAF’s actions for preventing money laundering, terrorism financing, and the proliferation of weapons of mass destruction (AML/CFT), in accordance with Article 9 of Law No. 9,613/1998, if there is no specific competent regulatory body.

The main violations identified include:

• Customer identification and recordkeeping issues;
• Non-existent transaction records or registration with COAF;
• Non-compliance with COAF requests;
• Failure to notify cash transactions that exceed legal limits;
• Failure to report suspicious transactions; and
• Flaws in AML/CFT internal policies and controls.

COAF imposed penalties on Gucci Brasil Importação e Exportação Ltda., Dolce & Gabbana do Brasil, and Localiza Rent a Car S.A., as well as their respective executives, under Article 12 of the Money Laundering Act.

This decision reinforces COAF’s enforcement competence and highlights that companies under the council’s direct supervision should enforce robust AML/CFT measures.

See the full COAF press release for more information.

Brazil’s STJ authorizes the sharing of civil evidence with criminal investigations even after the original case is dismissed

The Sixth Panel of Brazil’s Superior Court of Justice (STJ) ruled that investigators may share evidence lawfully gathered in a civil action for early discovery with a criminal probe, even when the original civil case ends without a merits ruling because the plaintiff lacks standing.

In this case, an investment management firm filed a civil action alongside a Federal Police investigation into alleged market manipulation and unfair competition. As part of the civil action, a court authorized search-and-seizure warrants for electronic equipment. Subsequently, the Federal Police requested that the evidence be shared, with the consent of the Federal Public Prosecutor’s Office and judicial authorization; however, the TRF3 (Federal Appellate Court of the 3^rd Region) once again suspended the request after dismissing the civil action.

The STJ, in turn, overturned the lower court’s ruling, stressing that the evidence remains valid because the gathering process complied with legal standards and that the court had merely found the measure unnecessary for that specific civil proceeding.

Justice Sebastião Reis Júnior explained that evidence gathered lawfully can support other legal proceedings, including criminal cases, provided it complies with all legal and constitutional standards. Sebastião also stressed that sharing the evidence aligns with the principles of procedural economy, efficiency, and the search for proof beyond a reasonable doubt, and it confirms that the victim’s role is collaborative, as set out in Article 14 of the Code of Criminal Procedure.

See full STJ news release for more information.

CVM reports increase in reports of circumstantial evidence of crimes to the Federal Public Prosecutor’s Office in 2025

The Brazilian Securities and Exchange Commission’s (CVM) Enforcement Activity Report (Relatório de Atividade Sancionadora) highlighted a notable increase in reports of circumstantial evidence of criminal activity to the Public Prosecutor’s Office in 2025.

According to the report, the CVM submitted 95 official letters in 2025 (67 to the Federal Public Prosecutor’s Office and 28 to state public prosecutor’s offices), surpassing the previous year’s total of 70 reports. The highest volume was registered in the fourth quarter, when the CVM sent 32 official letters (25 to the MPF and 7 to state public prosecutor’s offices).

According to the CVM, the cases reported relate primarily to offenses such as fraudulent management of a financial institution, fraud, and irregular conduct in the capital markets.

In the fourth quarter, reports highlighted cases related to: improper exercise of office, profession, activity, or function (15 letters), fraud (10 letters), and fraudulent management (3 letters).

By emphasizing that submitting this information to the Public Prosecutor’s Office is the CVM’s legal obligation, the report highlights the link between the administrative enforcement sphere and criminal prosecution within the capital markets.

See the full CVM report for more information.

STJ rules that an assistant prosecutor can file an appeal when the Public Prosecutor’s Office fails to take action

The Fifth Panel of the Superior Court of Justice (STJ) ruled that an assistant prosecutor may appeal a decision that dismisses charges, even if only partially – especially when the Public Prosecutor’s Office (MP) fails to act.

In the reviewed case, the trial court accepted the charges for minor bodily injury but set aside the more serious torture charge. Because the Public Prosecutor’s Office did not appeal, the assistant prosecutor filed a strict appeal to include the crime of torture. The Court of Justice of the State of São Paulo, however, found that the assistant prosecutor lacked standing to file an appeal.

The STJ overturned this ruling, emphasizing that the list of powers set forth in Article 271 of the Code of Criminal Procedure should be read in an illustrative and systematic way. Therefore, the prosecuting assistant may also act at the appellate level, provided the appeal stays within the scope of the charges already filed.

According to the reporting justice, Maria Marluce Caldas, the assistant’s role reinforces the adversarial system and strengthens criminal prosecution, particularly by preserving judicial protection when the prosecuting authority does not act.

The decision also reinforces the understanding that the victim should be treated as a rights-holder, with the ability to influence the outcome of the prosecution, in line with the principles of democratic rule of law.

See the full STJ news release for more information.

STF authorizes Operation “Sem Refino” and suspends authorities in Rio de Janeiro

At the Brazilian Federal Police’s request, Federal Supreme Court Justice Alexandre de Moraes authorized Operation “Sem Refino,” which involves executing search and seizure warrants and suspending public officials in the state of Rio de Janeiro. Moraes also ordered the pretrial detention of Ricardo Magro, a businessman linked to Refit (formerly the Manguinhos Refinery).

The investigation involves a criminal organization allegedly engaged in fraudulent management, money laundering, tax evasion, currency evasion, and economic crimes in the fuel sector, with probable cause that public officials engaged in corruption schemes.

In his ruling, Moraes highlighted evidence produced by the Federal Police that characterizes Ricardo Magro as a “habitual tax evader,” pointing to the deliberate structuring of corporate and financial mechanisms to conceal assets, disguise property ownership, launder illicit funds, and thwart tax enforcement efforts. The decision emphasizes that the gravity and ongoing nature of the conduct justify pretrial detention to stop the alleged criminal activity.

The court also ordered that Magro – who resides in the United States – be added to Interpol’s Red Notice list and that measures be adopted to facilitate his extradition to Brazil.

The operation builds on earlier decisions under ADPF 635 (action against the violation of a constitutional fundamental right), which directs investigations into crimes with interstate and international repercussions, including the activities of economic groups and their links with public officials.

See the full STF news release for more information.

CADE recommends denial of B3’s acquisition of a stake in CRDC

The General Superintendence (GS) of Brazil’s Administrative Council for Economic Defense (CADE) has submitted to CADE’s Tribunal a case involving B3’s proposed purchase of 60% stake in Central de Registro de Direitos Creditórios S.A. (CRDC), along with a partnership agreement signed between B3, the São Paulo Commercial Association (ACSP), and CRDC itself.

The GS’ analysis identified sources of competition concerns associated with the transaction, such as inorganic competitive advantages that may exacerbate asymmetries and concentrate the emergent market for electronic trade receivables, as well as the reinforcement of incentives to adopt anticompetitive practices, such as bundling, tying, and cross-subsidies aimed at leveraging market power.

The decision also highlights the exit of a competitor from already concentrated markets, the expansion of B3’s portfolio and market power across the financial sector, and the absence of proposed efficiencies or remedies. On this basis, the GS referred the case to CADE’s Tribunal, along with the recommendation that CADE’s Tribunal block the transaction.

For more information, see: Cade recomenda reprovação da compra da CRDC pela B3 e o Acordo de Parceria delas com ACSP

CADE recommends the blocking of Hospital Santa Catarina’s acquisition by Unimed Blumenau

CADE’s General Superintendence has referred the acquisition of Hospital Santa Catarina by Unimed Blumenau Cooperativa de Trabalho Médico to CADE’s Tribunal.

The parties completed the transaction in 2024, and CADE took notice of it following a complaint received that same year. At the time, CADE’s Tribunal ordered Unimed to file the transaction with CADE for review,  and simultaneously granted a preliminary injunction requiring the cooperative to maintain, on an equal and non-discriminatory basis, its accreditation and contracts with medical and hospital service providers in Blumenau.

The GS’ analysis flagged competition concerns stemming from the vertical integration between the health insurance plans offered by Unimed Blumenau, which serves more than 75% of medical-hospital health insurance beneficiaries in Blumenau, and the hospital services provided by Hospital Santa Catarina, the municipality’s leading general hospital. Upon reviewing the evidence, the authority found that the deal could still harm competition in both the health insurance and general hospital markets in Blumenau, for example, by partial foreclosure of the market to rivals.

Regarding remedies, the GS concluded that neither structural nor behavioral measures would be appropriate in this case, based on recent CADE case law in similar transactions. Therefore, the GS recommended that CADE’s Tribunal block the transaction.

For more information, see: Cade impugna operação de aquisição do Hospital Santa Catarina pela Unimed Blumenau

CADE launches an administrative inquiry with preventive measures to investigate the pediatric surgery sector in Campo Grande

CADE’s General Superintendence (GS) has launched an administrative inquiry against Secipe (Serviços Cirúrgicos Pediátricos/MS) to investigate a potential anticompetitive conduct in market for the hospital-based pediatric surgical services in the city of Campo Grande, Mato Grosso do Sul.

The probe originated from a complaint against Secipe for concentrating a major portion of pediatric surgeons in the region into a single structure for negotiations with hospitals and health insurers. The preliminary investigation showed that the company centralized the commercial activities of professionals who, in principle, should act independently. According to the GS, the evidence gathered so far suggests collective price-fixing of medical fees through the adoption of a fixed fee schedule, as well as the centralization of negotiations with healthcare sector agents.

Consequently, the GS adopted a preventive measure, ordering Secipe to refrain from preparing or publicizing medical fee schedules; from participating, directly or indirectly, in collective or individual negotiations regarding services provided by professionals affiliated with its corporate structure; and from preventing physicians, directly or indirectly, from negotiating freely with hospitals, health insurers, or other entities in the sector.

For more information, see CADE’s website.

CADE reviews transactions in artificial intelligence markets

CADE’s Tribunal reviewed a series of transactions in digital and artificial intelligence markets, addressing new forms of acquiring technology, talent, and competitive capabilities.

During the session, CADE requested the notification of the Microsoft/Inflection transaction. It simultaneously closed the Gun Jumping Investigations (APACs) related to the following mergers:

• Run:ai Labs Ltd./NVIDIA
• Microsoft/Mistral AI
• Google/Character.AI

Finally, the Tribunal ordered the initiation of two new APACs to investigate the transactions involving Google/Windsurf and Google/Hume AI.

On that occasion, Acting President Diogo Thomson He emphasized that transactions in digital and technology markets may result in significant transfers of assets, capabilities, intellectual property, and strategic personnel, even when the companies involved generate limited revenue in Brazil. According to Diogo, in such cases, CADE’s mechanisms serve as an exceptional tool to address shortcomings in the mandatory notification system. All Commissioners endorsed Diogo’s opinion.

Microsoft/Inflection transaction

Reporting Commissioner José Levi decided that the agreed-upon arrangements, such as technology licensing and the hiring of nearly all of Inflection’s former employees, follow the same economic logic as traditional acquisitions, even if in an unconventional manner. Although the parties’ revenues fell below the threshold set by Law No. 12,529/2011, Levi deemed it appropriate to order the filing of the transaction for CADE’s review.

Dismissed APACs

• In the NVIDIA/Run:ai case, the Tribunal found that the parties’ revenues in Brazil remained below the legal thresholds and identified no significant competitive effects in the domestic market.
• In the Microsoft/Mistral AI case, the reporting Commissioner José Levi concluded that Microsoft did not acquire control over Mistral AI and the transaction did not meet the criteria for mandatory notification.
• In the Google/Character.AI case, reporting Commissioner Camila Alves acknowledged that transactions involving technology licensing and the hiring of specialized teams may have competitive significance. In this case, however, she concluded that the factors of proportionality, legal certainty, and the existence of alternative courses of action made it appropriate to avoid issuing a file-for-review order. She did, however, order specific investigations into the Google/Windsurf and Google/Hume AI transactions.

For more information, see: Cade arquiva três Apacs, determina notificação da operação Microsoft/Inflection e apuração de duas novas operações envolvendo Google

CADE recommends partial conviction in an unprecedented case involving the exchange of automotive R&D information

CADE’s General Superintendence (GS) recommended a partial conviction in an administrative proceeding that investigated the sharing of competitively sensitive information in the international market for light passenger vehicles. This is the first Brazilian case in which competitors have been investigated for allegedly harming competition through the exchange of research and development data.

According to the GS, the investigation found evidence that the companies coordinated by exchanging sensitive information on R&D projects for components installed in automobile models, most of which target the premium segment. In the authority’s view, such conduct could reduce competitive uncertainty, compromise innovation incentives, and ultimately harm end consumers.

Although the interactions under investigation occurred abroad, the GS found that the technologies discussed by the group of companies were also incorporated into vehicles sold or manufactured in Brazil. As a result, the GS recommended that Audi, BMW, Porsche, and Volkswagen be convicted and fined, as well as the individuals associated with these companies. Regarding Mercedes-Benz and the individuals associated with it, however, the GS recommended dismissing the case.

For more information, see: Cade recomenda condenação em processo sobre troca de informações no mercado internacional de veículos automotores leves

SECEX: New investigations and reviews of antidumping in Brazil

In May 2026, Brazil’s Secretariat of Foreign Trade (SECEX) initiated a sunset review and an anti-circumvention review, while the Executive Management Committee (Gecex) of the Foreign Trade Chamber (Camex) re-determined antidumping duties.

• Sunset review of the antidumping duty applied to imports of offset printing plates originating in China, Chinese Taipei, the US, the EU, and the UK

Initiation: SECEX CIRCULAR LETTER No. 36, DATED MAY 5, 2026

Product: pre-sensitized aluminum plates for offset printing, commonly classified under NCM subheadings 3701.30.21 and 3701.30.31.

• Anti-circumvention review of the antidumping duty applied to imports of frozen potatoes originating in Germany, Belgium, and the Netherlands

Initiation: SECEX CIRCULAR LETTER No. 37, DATED MAY 7, 2026

Product: lightly seasoned frozen potatoes, classified under NCM subheading 2004.10.00.

• • Re-determination of the antidumping duty applied to imports of metallic magnesium originating in China

Conclusion: GECEX RESOLUTION No. 892, DATED MAY 7, 2026

Product: metallic magnesium in raw forms, commonly classified under NCM subheadings 8104.11.00 and 8104.19.00.

European Commission publishes CBAM carbon pricing report

The European Commission published a report compiling contributions on the Carbon Border Adjustment Mechanism (CBAM) implementing act concerning carbon prices in third countries. The Synopsis Report on Calls for Evidence on the implementing act on the carbon price paid in third countries for the definitive phase of the CBAM consolidated 158 contributions received in public consultations launched in August 2025, with participation from stakeholders in the European Union (54%) and in third countries (46%), such as China, Turkey, and the United Kingdom.

The public consultations focused on three central pillars of the implementing act for the Carbon Border Adjustment Mechanism (CBAM): emissions calculation methodology, free allocation, and carbon pricing, with special emphasis on the criteria for deducting amounts paid in third countries.

Main topics addressed in the contributions:

• Eligibility of carbon pricing instruments: there was support for the addition of robust systems from third countries, such as the UK ETS and China’s ETS, alongside requests for clear equivalence criteria and the exclusion of taxes.
• Refunds, offsets, and effective price: there was consensus that refunds should not undermine the CBAM’s objectives, despite differing positions between the EU (more restrictive) and third countries (broader).
• Proof of payment: the adoption of practical, standardized documentation (government receipts) and the use of digital solutions were recommended.
• Currency conversion: the need for a transparent, standardized methodology was highlighted, with a clear definition of the applicable exchange rates and reference periods.
• Accreditation and independence: there was support for adopting international standards, mutual recognition agreements, and technical references such as ISO and the GHG Protocol.
• Recognition of national systems: the risk of restricting accreditation to the EU was highlighted, including potential trade barriers and higher costs for producers in third countries.
• Administrative simplicity and digital integration: there was demand for streamlined processes and digital-based compliance mechanisms.

WTO records new safeguard investigation initiations

In May 2026, Kazakhstan, the Kyrgyz Republic, the United States, and Russia notified the World Trade Organization (WTO) of the initiation of the following safeguard investigations:

• Kazakhstan: specific passenger car tires (notification)
• United States: quartz surface products (notification)
• Kyrgyz Republic: specific passenger car tires (notification)
• Russia: specific passenger car tires (notification)