Compliance and Investigations Newsletter – March 2024

O Boletim de Compliance e Investigações tem como objetivo trazer informações sobre as principais notícias, trends, casos e legislações relacionadas ao tema de compliance, no Brasil e exterior. Este material tem caráter informativo, e não deve ser utilizado para a tomada de decisões. Aconselhamento legal específico poderá ser prestado pelos nossos advogados.

Boa leitura!

Equipe de Compliance e Investigações

“Pacto Brasil”: Companies can now obtain seal of commitment to business integrity

“Pacto Brasil pela Integridade Empresarial” is an initiative that encourages companies operating in Brazil to voluntarily make a public commitment to business integrity.

In addition to combating corruption, the integrity guidelines of “Pacto Brasil” include  the implementation of measures to respect human rights and workers, as well as to preserve the environment.

On March 6, 2024, the Brazilian Office of the Comptroller-General (“CGU”) made available an electronic platform for companies to join “Pacto Brasil”. To apply, companies must  submit the signed Adhesion Agreement through the system and, subsequently, do the self-assessment of integrity measures within 180 days of signing the agreement.

For more information, access the CGU article, the Pacto Brasil page and the application page.

CGU and AGU enter into Cooperation Agreement

On March 21, 2023, the Federal Attorney General’s Office (“AGU”) and CGU signed a memorandum of understanding providing for cooperation between the two authorities to bolster the combat against corruption and improve asset recovery proceedings.

The memorandum provides for the exchange of information to support legal actions and administrative measures adopted by the institutions in cases involving acts of administrative improbity, damage to public assets, illicit acts resulting in damage to the federal treasury, illicit enrichment of public and private agents or violation of government principles.

According to the agreement, administrative proceedings initiated by the CGU may be the basis for legal actions brought by the AGU to seek compensation for damage to the treasury and hold the perpetrators of illegal acts legally responsible. On the other hand, information from the AGU’s legal actions may support CGU’s disciplinary or sanctioning procedures against government agents or private entities, and the exchange of information between them is only possible under the terms of a Confidentiality Agreement.

AGU will also cooperate regarding requests for the adoption of judicial measures necessary for CGU investigations, and the AGU will be responsible for submitting the request to the courts.

For more information, access the agreement in full.

Bill that criminalizes private corruption approved – Now pending before Constitutional and Judicial Commission

On March 12, 2024, a bill that criminalizes private corruption in Brazil was approved by the Public Security Commission (CSP).

Bill 4,436/2020, by Senator Marcos do Val (Podemos-ES), received a favorable opinion from Senator Styvenson Valentim (Podemos-RN), with an amendment replacing the original wording, and will move forward to the Constitutional and Judicial Commission (CCJ) for a final decision.

The bill amends the Penal Code to establish a penalty of 2 to 5 years of imprisonment and a fine for anyone who, as an employee or representative of a private company or institution, directly or indirectly demands, requests or receives an undue advantage for themselves or a third party, or accepts the promise of such advantage, in order to perform or refrain from performing an act inherent to their duties. In addition, anyone who offers, promises, gives or pays such an advantage, directly or indirectly, to an employee or representative of a private company or institution, will also be punished.

Access the full Senate press release.

DOJ announces Whistleblower Pilot Program

The U.S. Department of Justice (DOJ), through its U.S. Attorney Ismail Ramsey, announced the launch of new policies underlying the Northern District of California (NDCA) Whistleblower Pilot Program.

The recently announced NDCA Whistleblower Pilot Program aims to proactively uncover criminal conduct in the district.

U.S. Deputy Attorney-General Lisa Monaco announced the pilot program on March 7, 2024, during her keynote address at the American Bar Association’s 39th National Institute on White Collar Crime in San Francisco, California.

During her speech, Monaco noted that the program complements the DOJ’s Voluntary Self-Disclosure (VSD) programs, which encourage companies to take responsibility for misconduct within their organizations.

The pilot program is essentially a voluntary self-reporting program for individuals. Similarly to the VSD program, the new Whistleblower Pilot Program offers rewards for self-disclosure, including “offering non-prosecution agreements to certain categories of at-fault individuals who self-disclose wrongdoing”.

For more information, access the DOJ’s press release and the Pilot Program.