Corporate Investigations Newsletter – October 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

CGU sets historic record with over 100 PARs initiated in 2025

CGU has surpassed the mark of 100 Administrative Accountability Proceedings (“PARs”) filed against companies in 2025, reaching a historic record of 106 proceedings.

Operation Dissímulo, which investigates fraud in public contracts with the use of front companies and simulated competition, was responsible for the launching of eight new investigations on October 13, 2025. Other relevant operations also contributed to the significant increase in proceedings, such as: Sem Desconto (40 PARs); Rolo Compressor (17 PARs); and Circuito Fechado (19 PARs).

By October 2025, 42 proceedings had been judged, resulting in BRL 1.19 billion in fines and BRL 26.1 million collected through 16 terms of commitment. Such increase reflects the strengthening of CGU’s role in holding legal entities accountable and protecting public assets.

For more information, please access the full article.

CGU and Brazilian Revenue Office take part in investigation into new stage of Operation Overclean

On October 31, 2025, the CGU and the Brazilian Federal Revenue Office took part in the 8th phase of Operation Overclean, conducted in collaboration with the Federal Police.

The measure was aimed at dismantling a criminal organization suspected of bid rigging, embezzlement of public funds, corruption, and money laundering.

The authorities carried out five search and seizure warrants as well as the seizure of illicit valuables in Brasília (DF), São Paulo (SP), Palmas, and Gurupi (TO), ordered by the Brazilian Federal Supreme Court (“STF”). The parties under investigation may face charges of active and passive corruption, embezzlement, bid-rigging, and money laundering.

The CGU has reinforced the role of the Brazilian Federal Ombudsman’s Office (“OGU”) as the official channel for complaints through the Fala.BR platform. This channel allows information to be submitted identifiably or anonymously, thus contributing to strengthening public integrity.

For more information, please access the full article.

CGU reinforces Brazil’s role in integrity by exposing whistleblower protection system at G20

During the 3rd Meeting of the G20 Anti-Corruption Working Group (ACWG), held throughout the last week in October 2025, in South Africa, the CGU presented the Brazilian model for protecting whistleblowers, through the case study “Integrity by Design”.

The presentation highlighted the Fala.BR platform as an international benchmark for bringing together features such as automatic anonymization, audit trails, encryption, ensuring security and confidentiality while handling complaints.

The Brazilian model was recognized in the G20’s Accountability Report 2025 as an example of good practice in public integrity and the ethical use of technology. The CGU also reinforced its international role by meeting with the Hong Kong Anti-Corruption Authority (“ICAC”), focusing on technical cooperation, training, and the foment of public ethics.

The CGU’s participation in the event emphasizes Brazil’s leading role in the global integrity agenda, in line with the commitments undertaken within the framework of the G20, of the United Nations Convention Against Corruption (UNCAC), and of the Organization for Economic Co-operation and Development (OECD).

For more information, please access the full article.

CGU and Federal Police launch joint operation to dismantle corruption scheme in inspections of products bound for Venezuela

On October 29, 2025, the CGU and the Brazilian Federal Police launched Operation Imperium Messis, with the aim of dismantling a corruption scheme involving public officials and businessmen from the food export sector on the border with Venezuela.

The investigation began with an anonymous report and uncovered evidence that public officials were receiving undue advantages to favor companies during the inspection of products intended for export.

The irregularities occurred within the Superintendence of the Ministry of Agriculture and Livestock (“MAPA”) in Roraima, where, since 2020, inspections had been carried out by a private company acting as a customs warehouse. A total of 11 search and seizure warrants were conducted in Roraima and Mato Grosso, as well as the blocking of up to BRL 1.8 million in assets of the parties under investigation. The identified crimes include active and passive corruption, money laundering, and criminal organization.

The operation reinforces the CGU’s commitment to public integrity and to fostering an ethical and competitive business environment.

For more information, please access the full article.

FEBRABAN self-regulation tightens rules for closing straw accounts, dormant accounts, and irregular betting operators

In support of measures taken by the Central Bank and the government, FEBRABAN’s Self-Regulation body has established new guidelines mandating that banks block suspicious transactions and immediately close straw accounts, dormant accounts, and accounts belonging to online betting operators without an operating license issued by the Ministry of Finance’s Secretariat of Prizes and Betting (SPA).

The new rules have been in force since October 27, and require financial institutions to implement strict policies to identify and close accounts involved in fraud, scams, and money laundering, including mandatory reporting to the Central Bank and ongoing supervision by FEBRABAN. The initiative aims to prevent criminal organizations from exploiting the banking system and to improve the sector’s integrity.

Participating companies must provide internal policies, submit a statement of compliance drafted by an independent department (such as audit, compliance, or internal controls), and promote educational activities aimed at preventing fraud. Betting operators that fail to comply with these rules may face penalties ranging from a warning to exclusion from the self-regulation system.

See the full article for more information.

STJ reinforces judicial limits in criminal precautionary measures
The Fifth Panel of the Superior Court of Justice (STJ) decided, by a majority vote, that a judge cannot order preventive detention if the Public Prosecutor’s Office requests less severe precautionary measures.

The ruling emphasizes the importance of respecting the adversarial system and court impartiality.

The case in question involved a man caught red-handed for drug trafficking – 354.475 g of marijuana were seized. At the custody hearing, the Public Prosecutor’s Office of Goiás requested the defendant’s release pending trial, subject to the enforcement of alternative measures. Still, the court ruled for preventive detention based on the substantial weight of the drugs seized. The Court of Justice of Goiás upheld the decision, arguing that the Public Prosecutor’s request did not bind the judge.

Justice Ilan Paciornik, whose vote prevailed in the ruling, emphasized that preventive detention can only be ordered in response to provocation and cannot be imposed without due cause.

According to Paciornik, the ruling exceeded statutory limits by imposing a more severe measure without cause, compromising impartiality and the power balance between prosecution and defense. The justice emphasized that strict legality must be observed in any restriction on personal freedom, respecting the institutional functions of each party.

See the full article for more information.

STJ: Financial institutions must compensate victims of fake call center scams
On October 8, 2025, the Third Panel of the STJ ruled that banks and payment institutions must compensate clients who fall victim to social engineering scams related to flaws in data protection and suspicious transaction flagging.

The precedent was established under two special appeals in which consumers reported significant losses after falling victim to fake call center scams. In one case, the account holder lost BRL 143,000 due to fraudulent transactions, BRL 13,000 due to a loan, and BRL 11,000 due to the payment of a bank pay slip via credit card – all of which are incompatible with his consumer profile.

The rapporteur, Justice Ricardo Villas Bôas Cueva, emphasized that financial institutions are strictly liable for fraud committed by third parties, unless there is evidence that the institution had no defect or that the consumer was exclusively at fault, which was not the case.

Justice Cueva also emphasized that security systems must be capable of identifying atypical operations by monitoring factors such as transaction amounts, time, location, sequence, and means, in addition to the contracting of unusual loans right before suspicious transactions.

Finally, the STJ reiterated that this decision applies to both traditional financial institutions and payment institutions, as provided for in Law 12,865/2013.

See the full article for more information.

Ministry of Justice proposes anti-faction law to bolster the fight against organized crime

The Minister of Justice and Public Security, Ricardo Lewandowski, submitted an “Anti-faction” bill to Brazilian President Luiz Inácio Lula da Silva and the Chief of Staff’s Office, proposing stricter measures against criminal organizations.

The bill provides for the creation of the “aggravated criminal organization” crime, which would incur a penalty of up to 30 years in prison. His proposal also increases the penalty for a “simple criminal organization,” raising the current sentence from three to eight years to a new range of five to ten years.

Among the aggravating factors are the solicitation of minors, involvement of public officials, territorial or prison control by criminal factions, use of restricted or illegal firearms, and injury or death of public security officials. The new crime will be classified as heinous and, therefore, not eligible for bail.

The bill also proposes the implementation of a national database containing detailed information on members of criminal organizations, including names, aliases, documents, personal characteristics, and even DNA profiles. This database will be shared with all security forces in Brazil to support the tracking and investigation of criminal organizations.

Lewandowski emphasized that the bill seeks to update the Criminal Organizations Act (Law No. 12,850/2013) and that the government must be “more organized than crime,” which has become “increasingly sophisticated.” Although he acknowledges that increasing penalties is not a definitive solution, Lewandowski believes that the measure may deter low-ranking members of these factions from engaging in criminal activities.

The bill also outlines measures to curb the financial resources of criminal organizations swiftly. These actions are part of a broader strategy to combat organized crime, which includes initiatives to reclaim territories controlled by factions and reintroduce essential public services.

See the full article for more information.

MERCOSUR prosecution offices increase cooperation against transnational organized crime

On October 21, 2025, during the 38th Specialized Meeting of Prosecutors-Generals of Mercosur (REMPM), held in Belém do Pará, Brazil, the prosecutors-general of eight countries – Brazil, Bolivia, Chile, Colombia, Ecuador, Paraguay, Uruguay, and Suriname – ratified a joint declaration containing measures aimed at strengthening the fight against transnational organized crime.

The document highlights the commitment of these countries to using advanced technologies for better assessing complex information in criminal investigations. Among the main points of the declaration are the creation of specialized units, the integration of databases, and the secure sharing of technologies among signatory countries.

The declaration also reaffirms the importance of direct international cooperation, including the establishment of joint investigation teams that enable the rapid exchange of evidence and the development of common strategies without the need for mediation by central authorities.

Equally important is investing continuously in training members and staff of public prosecutors’ offices in criminal analysis techniques and technological tools. The goal is to combat crimes more effectively, such as drug, people, and natural resources trafficking, and money laundering.

Finally, the public prosecutors proposed that the upcoming Joint Communiqué of the MERCOSUR States Parties and Associated States address the need to expand the use of institutional criminal investigation technologies within regional strategies against organized crime.

See the full article for more information.

CADE approves, with restrictions, partial expansion of network sharing between TIM and Telefônica

On October 22, the Administrative Council for Economic Defense (“CADE”) approved, with restrictions, the expansion of the mobile network infrastructure sharing agreements between TIM and Telefônica.

The approval was conditional upon the signing of a Merger Control Agreement (“ACC”), which established measures to preserve competition in the sector. The transaction involved amendments to existing RAN sharing agreements, covering 2G, 3G, and 4G technologies in thousands of municipalities, especially those with fewer than 30,000 inhabitants.

The initial proposal called for the consolidation of networks in locations where both companies were already active, which could reduce rivalry and restrict the entry of new competitors. In addition, it provided for the future inclusion of municipalities without defining deadlines, which raised concerns about indefinite prior authorizations.

In view of these risks, the approval of the transaction was conditioned upon remedies, including:

• Limitation of the geographical scope of the transaction;
• Public disclosure of the list of municipalities covered;
• Ban on the reduction of coverage and quality of services;
• Creation of an independent unit to ensure governance and prevent the exchange of sensitive information; and
• Continuous monitoring by the authority, with technical support from the Brazilian National Telecommunications Agency (“ANATEL”).

Reporting commissioner Diogo Thomson conducted the analysis and negotiations, which were unanimously approved by CADE’s Tribunal.

For more information, please access: CADE approves network sharing expansion between TIM and Telefônica, including undertakings

CADE holds public hearing on merger between Petz and Cobasi

On October 17, CADE held a public hearing to discuss the potential competitive impacts of the merger between Petz and Cobasi, which is still under analysis by the authority.

The hearing gathered numerous entities and experts from the sector, with declarations both in favor of and against the deal.

The proponents of the merger highlighted its potential to promote market professionalization, raise product quality standards, and strengthen the companies’ social engagement – for example, through adoption fairs and animal protection projects –, which could scale up through joint efforts.

Conversely, concerns were raised about concentration risks, price increases, a reduction in product diversity, and potentially negative impacts on animal welfare, such as increased abandonment rates.

Within this context, the intervening third party – Petlove – argued that the two companies are close competitors in a sector with high entry barriers, which would require greater caution in the competitive analysis. Petz and Cobasi argued that the transaction aims to increase efficiency gains and reduce prices for consumers, indicating a combined market share of approximately 10%.

For more information, please access: Cobasi and Petz inform CADE that they have lost ground to marketplaces

CADE launches public consultation to create a Price Fixing Analysis Guide

On October 10, CADE launched a public consultation to examine the draft of the Guide for Analyzing Practices of Influencing Uniform Commercial Conduct Based on Price Lists and/or Other Similar Instruments.

The initiative, led by CADE’s General Superintendence, resulted from the activities of the Working Group on Price Fixing, created in 2024, with technical support from the United Nations Development Program (“UNDP”).

The guide aims to systematize CADE’s approach to practices involving the adoption of price lists, reference values, and similar instruments, which are often used by associations, unions, cooperatives, and professional councils. These practices can pose serious competition concerns by encouraging uniform commercial conduct between competitors.

In 2024, among the 23 cases of anticompetitive conduct ruled by CADE’s Tribunal, five involved uniform commercial conduct. Of these, four resulted in convictions, with fines totaling approximately BRL 42 million.

In addition to the pecuniary sanctions provided for in the legislation, the draft guide provides for non-pecuniary penalties, such as obligations to cease the practice, changes to statutes and codes of ethics, and the implementation of competition compliance programs.

For more information, please access the public consultation:  Guide for Analyzing Practices of Influencing Uniform Commercial Conduct Based on Price Lists and/or Other Similar Instruments.

CADE holds seminar on regulatory and competition challenges in the betting market

On October 30, CADE held the seminar “Betting market: challenges and competitive perspectives”, which gathered authorities from the Ministries of Finance and Sports to debate the regulatory and competitive impacts of the fixed-odds betting sector – the so-called “bets”, in Portuguese.

Since its legalization, in 2018, and its effectiveness, starting in 2023, the sector has been growing rapidly. Despite the expectation of an increase in cases at CADE, only the transaction between NSX and Flutter has been notified so far (registered under No. 08700.007230/2024-08), whose relevant market definition was based on European case law. In this case, CADE considered that the relevant market definition could be left open due to the lack of competitive concerns and analyzed the operation under three perspectives: 

• Online sports betting;
• Online games; and
• Online games of chance, including sports betting and other types of games.

Among the main topics covered at the seminar, the following are worth highlighting:

• Definition of the relevant market based on an analysis of the betting production chain, including operators, technology developers, and means of payment, based on European case law.
• Irregular operators and the impact on competitiveness and regulatory compliance in the sector.
• Federative pact and geographical delimitation, considering the controversies over the competence of states and municipalities to regulate and license betting – an issue already under analysis by the Brazilian Federal Supreme Court (“STF”).
• Competition between physical and digital lottery products and the challenges of regulatory harmonization and competition between traditional and virtual models.
• Legal uncertainty regarding the effects of the lack of regulatory definition on investments, aggravated by federal disputes and changes in federal legislation.
• Monitoring and combating illegal conduct, including a presentation of the measures adopted by the Department of Prizes and Betting to address unauthorized operators.
• Institutional cooperation, with an emphasis on the dialog between CADE, the Ministry of Finance and the Ministry of Sports, as an instrument to improve both the regulation and the competition analysis in the sector.

CADE’s president, Gustavo Augusto, closed the event and stressed the importance of the discussions raised to guide the authority’s analysis in future contacts involving the betting market.

CADE investigates football leagues for potential gun jumping

CADE is investigating whether the constitutions of the Brazilian Football League (“LIBRA”) and Liga Forte União (“LFU”) constituted gun jumping – an infraction that occurs when agents implement notifiable corporate operations before the approval of the competition body.

The investigations began in 2023, through two Administrative Procedures for the Investigation of Concentration Acts (“APACs”), based on complaints involving the collective negotiation of commercial rights and the broadcasting of national championships through the associations and leagues formed by the clubs.

On October 03, 2025, reporting commissioner Victor Oliveira Fernandes ordered that the clubs involved be summoned. He further requested detailed documents on the corporate structure, governance, and contracts governing the leagues. The investigation assesses whether the shared management of commercial rights between clubs, through the leagues, could constitute a joint venture – a model that requires mandatory notification to the body.

According to CADE, the main indication of gun jumping regards the significant changes to the statutory structures and contractual arrangements of the leagues after they were set up – a measure that was carried out without any notification to the authority. Additionally, the recent rapprochement between LIBRA and LFU, with discussions about a potential merger, was also highlighted as a factor that would reinforce the need to deepen the analysis.

SECEX launches trade defense and public interest investigations and closes cases

In October 2025, the Brazilian Foreign Trade Secretariat (“SECEX”) launched three new anti-dumping investigations, closed two investigations, and resumed a public interest assessment.

Original anti-dumping investigation against exports to Brazil of high-carbon steel wires from Egypt, Spain, and Malaysia

• Opening: SECEX Circular Letter No. 79, of October 09, 2025
• Product: High-carbon, high-strength steel wire, circular in cross-section, cold drawn, with a smooth or notched surface, of low or normal relaxation, classified in sub-items 7217.10.19 and 7217.10.90 of the MERCOSUR Common Nomenclature (“NCM”).

Original anti-dumping investigation against exports to Brazil  of disposable syringes from India and Paraguay

• Opening: SECEX Circular Letter No. 77, of October 10, 2025
• Product: Disposable syringes, classified under sub-items 9018.31.11 and 9018.31.19 of the NCM.

Original anti-dumping investigation against exports to Brazil  of non-woven fabrics from China, Egypt, and Israel

• Opening: SECEX Circular Letter No. 86, of October 24, 2025
• Product: Non-woven fabrics, whether or not impregnated, coated, covered or laminated, of synthetic or artificial filaments, weighing between 7g/m² and 150g/m², with or without additives, with or without coloring, for subsequent industrial processing or final consumption, classified in sub-items 5603.11.20, 5603.11.30, 5603.11.40, 5603.11.90, 5603.12.30, 5603.12.40, 5603.12.50, 5603.12.90, 5603.13.30, 5603.13.40, 5603.13.50, 5603.13.90, 5603.91.10, 5603.91.20, 5603.91.30, 5603.91.90, 5603.92.20, 5603.92.30, 5603.92.40, 5603.92.90, 5603.93.20, 5603.93.30, 5603.93.40 and 5603.93.90 of the NCM.

Closure of the sunset review of the anti-dumping duty applied to Brazilian imports of heavy plates originating in South Africa

• Closing: SECEX Circular Letter No. 76, of September 30, 2025
• Product: Low-carbon and low-alloy flat-rolled products from traditional or continuous casting, which may be processed by traditional or controlled rolling and heat treatment, with a thickness of 4.75 mm or more, which may vary depending on strength, and a width of 600 mm or more, regardless of length (thick plates), commonly classified in sub-items 7208.51.00, 7208.52.00 and 7308.90.10 of the NCM.

Closure of original antidumping investigation against exports to Brazil of steel tire cord from China

• Closing: SECEX Circular Letter No. 80, of October 13, 2025
• Product: Steel cord for tires, classified under sub-item 7312.10.10 of the NCM.

Resumption of the public interest assessment regarding the anti-dumping measure applied to Brazilian imports of gloves for non-surgical procedures, originating in China, Malaysia, and Thailand

• Closing: SECEX Circular Letter No. 85, of October 23, 2025
• Product: Gloves for non-surgical procedures, commonly classified under sub-items 3926.20.00, 4015.12.00, and 4015.19.00 of the NCM.

Brazil signs investment facilitation agreement with India

On October 13, 2025, Decree No. 12,666 was published, enacting the Investment Cooperation and Facilitation Agreement (“ACFI”) between Brazil and India, entered into in New Delhi on January 25, 2020.

The agreement, which was approved by the Brazilian Congress in September and will enter into force for Brazil on December 21, 2025, establishes rules for bilateral investments, including mechanisms for the free transfer of funds, non-discriminatory treatment, protection against expropriation without adequate compensation, and regulatory transparency, with the aim of creating a safe and predictable environment for investors.

Read the full decree.

WTO publishes report on dispute involving US countervailing measures against Chinese products

On October 22, 2025, the World Trade Organization (“WTO”) released the panel report regarding case DS591, which addresses the countervailing measures applied by the United States to specific products originating in China.

The panel concluded that part of the US practices violated provisions of the Agreement on Subsidies and Countervailing Measures (“ASMC”) and the 1994 General Agreement on Tariffs and Trade (“GATT 1994”), especially with regard to the methodology for calculating benefits and the lack of transparency in the procedures. The parties can appeal to the appellate body within 60 days if they wish to challenge the findings.

Read the Panel’s conclusions in full.

China requests WTO consultations on EU anti-dumping measures

On October 20, 2025, China submitted a formal request for consultations to the European Union within the framework of the WTO Dispute Settlement Understanding (DSU), challenging anti-dumping measures applied to rolled aluminum products.

Case DS642 questions the methodology used by the EU to calculate dumping margins and the alleged violation of provisions of the Anti-dumping Agreement and GATT 1994. The procedure marks the beginning of the mandatory consultation phase, which can evolve into the formation of a panel if the parties fail to reach an agreement.

Read the full note.