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
Brazil’s CGU fines companies in Carf corruption scheme and upholds penalties in school transportation case
The Brazilian Office of the Comptroller-General (CGU) fined companies more than BRL 5 million for bribing public servants to influence rulings by the Federal Administrative Council of Tax Appeals (Carf). The measures were based on the Clean Company Act and originated in Operation Checkout, which investigated payments of bribes to avoid tax charges.
In addition, the CGU upheld fines totaling BRL 16 million against companies found to have misappropriated school transportation funds. The rulings reaffirm the CGU’s stance on the seriousness of these acts and illustrate the authority’s ongoing efforts to hold corporations accountable for harmful acts against the government.
These cases also highlight the importance of effective compliance mechanisms to prevent improper payments, identify transactions without a clear economic rationale, and mitigate risks associated with third-party activities – especially in sectors subject to greater regulatory scrutiny and interaction with public officials.
For more information, see the full CGU report.
CGU launches public consultation on piercing the corporate veil in corporate accountability proceedings
The Brazilian Office of the Comptroller-General (CGU) has opened a public consultation on regulations related to piercing the corporate veil within the scope of the Administrative Accountability Proceedings (PAR) contemplated by the Clean Company Act. The proposal seeks to increase certainty in the enforcement of this legal concept, which allows certain sanctions to be extended to individuals or legal entities linked to unlawful acts in situations provided for by the regulations.
The initiative follows a trend toward improving the corporate accountability regime in response to the growing complexity of corporate structures and the use of corporate mechanisms to evade liability. The regulation also aims to strengthen legal certainty by establishing clearer and more transparent criteria.
For companies, this issue warrants attention not only from a legal perspective but also from a corporate governance perspective. Transparent corporate structures, adequate asset segregation, and consistent internal controls are likely to become increasingly relevant in mitigating risks of administrative liability.
For more information, see the full CGU report.
CGU updates liability manual with guidelines on the Clean Company Act
The Brazilian Office of the Comptroller-General (CGU) has released the third edition of the Manual on the Liability of Private Entities, designed to inform the application of the Clean Company Act in investigations and sanctioning proceedings involving legal entities. The new edition replaces the 2022 edition and incorporates the authority’s experience enforcing the legislation during that period.
The main updates include more detailed guidance on the sentencing, criteria for assessing aggravating and mitigating circumstances, and the incorporation of more recent regulatory instruments, such as the Settlement Agreement. The manual also reflects interpretations consolidated by the CGU and administrative precedents published in recent years.
The publication serves as an important reference for companies and individuals working in compliance, corporate investigations, and integrity. By consolidating the government’s interpretations, the document helps increase certainty in liability proceedings and provides useful information on regulatory expectations regarding corporate integrity.
For more information, read the full CGU report.
CGU strengthens international cooperation with Hong Kong in the fight against corruption
The Brazilian Office of the Comptroller-General (CGU) has entered into a technical cooperation agreement with the Independent Commission Against Corruption (ICAC) – Hong Kong’s anti-corruption authority, which is internationally recognized for its efforts to prevent and combat corruption. The agreement includes initiatives to exchange experiences, strengthen investigations, and foster integrity in the private sector.
This partnership reinforces the vital role of international cooperation in tackling increasingly complex and often transnational crimes. Sharing methodologies, best practices, and experiences accumulated by different authorities can help improve strategies for preventing, detecting, and responding to corruption risks.
The initiative also reflects Brazil’s growing involvement in global forums and networks focused on corporate integrity. For the private sector, this development highlights the value of compliance programs that align with international standards and respond effectively to the challenges of an increasingly integrated business environment.
For more information, see the full CGU report.
STF rules that criminal acquittal does not automatically terminate administrative misconduct proceedings
Brazil’s Federal Supreme Court (STF) has ruled that a criminal acquittal does not, by itself, automatically terminate administrative misconduct (improbity) proceedings based on the same underlying facts.
The ruling was issued in the judgment of Direct Actions for the Declaration of Unconstitutionality (ADIs) No. 7,156 and 7,236, which challenged amendments introduced by Law No. 14,230/2021 to Brazil’s Administrative Misconduct Law.
According to the STF, a criminal acquittal affects related civil-administrative proceedings only in specific circumstances where the court recognizes:
- the non-existence of the fact;
- the denial of authorship; or
- the existence of a legal rationale for the conduct, such as self-defense, necessity, strict compliance with a legal duty, or the lawful exercise of a right.
The STF further held that this understanding applies not only to acquittals, but also to the dismissal of criminal charges or the closure of criminal investigations.
According to the majority of the justices, automatically extending the effects of a criminal acquittal to administrative misconduct proceedings would undermine the autonomy of the criminal and civil-administrative spheres and conflict with constitutional principles such as the right to a natural judge, judicial independence in evaluating evidence, and access to judicial review.
For more information, see the STF’s full announcement.
STJ’s Justice annuls investigation conducted by Gaeco and reinforces the natural prosecutor principle
In a decision issued in Habeas Corpus No. 1,082,515, Justice Reynaldo Soares da Fonseca of Brazil’s Superior Court of Justice (STJ) nullified an investigation conducted by the Pará State Public Prosecutor’s Office’s Special Task Force to Fight Organized Crime (Gaeco). The STJ found that the investigation violated the constitutional principle of the natural prosecutor, which determines which prosecutor is authorized to act in each case.
The case involved alleged public procurement fraud. The ruling argued the Criminal Investigative Proceeding (PIC) was initiated by Gaeco without following the Public Prosecutor’s Office’s internal case-allocation rules and in parallel with an ongoing investigation conducted by the prosecutor originally assigned to the matter.
In reviewing the case, Justice Reynaldo reaffirmed the STJ’s established position that specialized units, such as Gaeco, may participate in criminal investigations, provided they act in a supporting role to the natural prosecutor and obtain prior authorization or express consent. In this case, however, the STJ found that Gaeco effectively replaced the originally assigned prosecutor by launching a parallel investigation into the same facts, seeking precautionary measures before a different court, and filing criminal charges based on a more severe legal classification.
The justice concluded that the violation of the natural prosecutor principle constituted a fundamental procedural defect, making it unnecessary to demonstrate specific prejudice to the defense. As a result, the investigation and all evidence derived from it were declared null and void, with the ruling’s effects extended to the other individuals investigated in the case.
For more information, see the STJ’s full decision.
Coaf and Federal Police expand cooperation to strengthen anti-money laundering efforts
Brazil’s Financial Activities Control Council (Coaf) and the Federal Police (PF) have established a new cooperation framework to strengthen the fight against money laundering, terrorist financing, and other financial crimes.
The initiative includes measures to improve coordination between financial intelligence and criminal investigations, including information-sharing mechanisms, joint studies, staff training programs, and the development of tools to improve cooperation between the two institutions.
According to Federal Police Director-General Andrei Rodrigues, the partnership will address the growing sophistication of financial structures used by criminal organizations to conceal and integrate illicit proceeds into the formal economy. The initiative reinforces Brazil’s strategy to increase cooperation between intelligence and law enforcement authorities, with a focus on improving the prevention and prosecution of money laundering and other financial crimes.
For more information, see Coaf’s full announcement.
STJ rules that the continuing-crime doctrine does not apply to social security crimes
The Third Section of the Superior Court of Justice (STJ), ruling under the repetitive appeals procedure (Topic No. 1,353), held that the continuing-crime doctrine does not apply to the crimes of misappropriation of social security contributions (Article 168-A of the Brazilian Criminal Code) and evasion of social security contributions (Article 337-A), although both offenses relate to the collection of social security contributions.
The case centered on whether the two offenses constituted crimes of the same nature for the purposes of applying the continuing-crime doctrine under Article 71 of the Brazilian Criminal Code. The STJ concluded that the offenses have distinct legal elements and methods of execution, thus precluding their treatment as a continuing crime.
The court established that the misappropriation and evasion of social security contributions constitute distinct criminal offenses, despite both protecting interests related to Brazil’s social security system. As a result, situations involving both crimes must be assessed under the rules governing concurrent offenses, rather than benefiting from the sentencing treatment available under the continuing-crime doctrine.
For more information, see the STJ’s full decision.
Alexandre Barreto concludes his term as CADE’s General Superintendent
Alexandre Barreto has concluded his term as head of the General Superintendence of Brazil’s Administrative Council for Economic Defense (CADE).
Barreto assumed the position in April 2022 and was reappointed in June 2024, after having chaired the agency’s Administrative Tribunal from 2017 to 2021, totaling nearly nine years of service at CADE.
Felipe Leitão Valadares Roquete, previously the Deputy Superintendent, will serve as Interim Superintendent until a new head is appointed.
For more information, see: Alexandre Barreto se despede do Cade após quase nove anos de atuação na autarquia
CADE fines Denso Corporation over BRL 100 million for international cartel in the wiring harnesses and automotive components market
The Tribunal of the Administrative Council for Economic Defense (CADE) fined Denso Corporation BRL 100.78 million for its participation in an international cartel in the wiring harnesses and electrical and electronic automotive components market. The sanction resulted from administrative proceedings initiated by CADE’s General Superintendence in 2015, originally targeting 22 companies and 89 individuals, in connection with practices that occurred between 2000 and 2009.
According to reporting commissioner Carlos Jacques, the cartel sought financial gain by raising the prices of automotive parts, ultimately affecting consumers who purchased vehicles at a higher overall cost. Certain investigated parties signed settlement agreements (TCCs), while the remaining parties’ cases were dismissed due to insufficient evidence.
For more information, see:
CADE’s General Superintendence reports abuse of dominant position by B3 in financial system infrastructure markets
The General Superintendence of the Administrative Council for Economic Defense (CADE) recommended that B3 (Brazil’s Stock Exchange) be found guilty of antitrust violations in an administrative proceeding launched in August 2025 following a complaint filed by CSD BR (Central de Serviços de Registro e Depósito aos Mercados Financeiro e de Capitais S.A.), which reported anti-competitive practices in the provision of asset registration and custody services in the financial and capital markets.
B3 allegedly adopted commercial policies that tied discounts and other benefits to the concentration of registration and custody volumes within its infrastructure, while also implementing customer-retention strategies and creating obstacles to interoperability with competing platforms. These practices allegedly increased customer migration costs and reinforced barriers to entry and expansion for rivals, ultimately harming competition in markets essential to Brazil’s financial system.
The investigation included the markets for financial asset registration, securities registration, insurance transaction registration, and related centralized custody services. The General Superintendence’s investigation found that B3 holds a dominant position and that some of its commercial and operational practices could close off the market, hindering competitors’ ability to operate. The case was referred to CADE’s Administrative Tribunal for a final ruling.
For more information, see:
CADE’s General Superintendence recommends sanctions against a cartel that affected bids in the railway engineering sector
The General Superintendence of the Administrative Council for Economic Defense (CADE) recommended that 34 companies and 17 individuals be found guilty of antitrust violations for participating in a cartel in the railway engineering sector. The anticompetitive conduct allegedly affected at least seven public bidding processes conducted by Valec– Engenharia, Construções e Ferrovias S.A. between 2000 and 2014 for the construction of the North-South Railway and the West-East Integration Railway, totaling approximately BRL 9.7 billion.
According to the investigation, the collusion occurred through the prior coordination of prices, conditions, and incentives among competitors; the coordinated withdrawal from bidding processes; the division of the market through the formation of consortia among rivals; the suppression of bids; the submission of cover bids; and the exchange of competitively sensitive information, all to undermine the competitive nature of the bids organized by Valec.
The illegal agreement reportedly became more complex over time, as new participants joined the scheme to divide up the lots for major construction projects. The case was referred to CADE’s Administrative Tribunal for a final ruling.
For more information, see:
Cade recomenda condenação por cartel na construção das ferrovias Norte-Sul e Oeste-Leste
Brazil’s SECEX launches public consultation on the Mercosur-Japan free trade agreement
Brazil’s Foreign Trade Secretariat (SECEX) has launched a public consultation concerning the negotiations of a free trade agreement between MERCOSUR and Japan, through SECEX Circular No. 50/2026.
Contributions to the consultation will help shape Brazil’s official stance in the negotiations led by MERCOSUR. They must be submitted by August 15, 2026, using the online form available on the Brasil Participativo website.
Brazil and Paraguay ratify MERCOSUR-EFTA free trade agreement
Brazil has deposited the instrument of ratification with the Paraguayan government for the Free Trade Agreement between MERCOSUR and the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland. The agreement will be forwarded to the Norwegian government, the depositary of the agreement, and provides for a bilateral entry-into-force mechanism, which will take effect on the first day of the third month following the deposit of the instrument of ratification by the member states of MERCOSUR and EFTA that have already completed this process, as is the case with Iceland.
Learn more in our Client Alert: Mercosur-EFTA Free Trade Agreement Promulgated
New safeguard investigations notified to the wto
In June 2026, South Africa and Armenia notified the World Trade Organization (WTO) of the initiation of the following safeguard investigations:
The imposition of safeguard measures could affect Brazilian exports of the products under investigation to those markets.
Below, we highlight the main acts published by the competent Brazilian authorities concerning antidumping, with information on the procedures, the products involved, and their respective origins.
Secretariat of Foreign Trade (Secex)
- Antidumping investigation concerning exports of plasticizer esters from South Korea, Chile, and Colombia to Brazil
- Initiation: CIRCULAR No. 49, DATED JUNE 29, 2026
- Product: plasticizer esters of the following types: Di-2-ethylhexyl phthalate, CAS (Chemical Abstract Service) Number 117-81-7 (DOP); Di-2-ethylhexyl terephthalate, CAS Number 6422-86-2 (DOTP); and di-isononyl phthalate, CAS Number 28553-12-0 (DINP), classified under subheadings 2917.32.00, 2917.33.00, and 2917.39.31 of the Mercosur Common Nomenclature (NCM).
- Antidumping investigation concerning exports of lactic acid and its salts from China to Brazil
- Initiation: CIRCULAR No. 48, DATED JUNE 25, 2026
- Product: lactic acid and its salts, classified under subheading 2918.11.00 of the NCM.
- Antidumping investigation concerning exports of tableware made of glass from China and Egypt to Brazil
- Initiation: CIRCULAR No. 42, DATED JUNE 18, 2026
- Product: tableware made of glass, classified under NCM subheadings 7013.28.00, 7013.37.00, and 7013.49.00.
- Sunset review of the antidumping duty applied to Brazilian imports of elastomeric rubber tubes originating in Germany, the United Arab Emirates, and Italy
- Initiation: CIRCULAR No. 44, DATED JUNE 19, 2026
- Product: elastomeric rubber tubes, commonly classified under NCM subheading 4009.11.00.
- Sunset review of the antidumping duty applied to Brazilian imports of disposable general-purpose syringes originating in China
- Initiation: CIRCULAR No. 45, DATED JUNE 19, 2026
- Product: disposable general-purpose plastic syringes with a capacity of 1 ml, 3 ml, 5 ml, 10 ml, or 20 ml, with or without needles, commonly classified under NCM subheadings 9018.31.11 and 9018.31.19.
- Sunset review of the antidumping duty applied to Brazilian imports of PET resin originating in China
- Initiation: CIRCULAR No. 41, DATED JUNE 15, 2026
- Product: PET resin, with an intrinsic viscosity between 0.7 dl/g and 0.88 dl/g, commonly classified under NCM subheadings 3907.61.00 and 3907.69.00.
- Redetermination of the antidumping duty applicable to the Chinese producer Shandong Ensign Industry Co., Ltd., regarding Brazilian imports of citric acid and certain salts and esters of citric acid originating in China
- Initiation: CIRCULAR No. 43, DATED JUNE 18, 2026
- Product: citric acid and certain salts and esters of citric acid, commonly classified under NCM subheadings 2918.14.00 and 2918.15.00.
- Termination of the sunset review without extension of the antidumping duty due to the lack of evidence that dumping and injury would likely continue or recur in exports of sodium acid pyrophosphate (SAPP) from the People’s Republic of China
- Termination: CIRCULAR No. 40, DATED JUNE 8, 2026
- Product: sodium acid pyrophosphate (SAPP), commonly classified under NCM item 2835.39.20.
Executive Management Committee (Gecex) of the Foreign Trade Chamber (Camex)
- Extension of the definitive antidumping duty on Brazilian imports of sodium acid pyrophosphate (SAPP) originating in Canada and the United States
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- Extension: Gecex Resolution No. 903, of June 3, 2026
- Product: sodium acid pyrophosphate (SAPP), commonly classified under NCM subheading 2835.39.20.
- Extension of the definitive antidumping duty on Brazilian imports of glass components for refrigeration appliances originating in China
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- Extension: Gecex Resolution No. 921, dated June 23, 2026
- Product: glass components for refrigeration appliances, commonly classified under NCM subheading 7007.19.00.
- Extension of the definitive antidumping duty on Brazilian imports of ceramic filters originating in China
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- Extension: Gecex Resolution No. 920, dated June 23, 2026
- Product: silicon carbide-based ceramic filters, commonly classified under NCM subheadings 6903.90.91 and 6903.90.99.
- Imposition of a definitive antidumping duty on Brazilian imports of lysine originating in China
- Measure: Gecex Resolution No. 923, dated June 24, 2026
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- Product: feed-grade lysine, commonly classified under NCM subheadings 2309.90.90, 2922.41.10, and 2922.41.90.
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