Corporate Investigations Newsletter – May 2025

The Corporate Investigations Newsletter aims to provide information on the main media news, trends, cases, and legislation concerning compliance, white-collar crime, and competition 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, and Competition teams

Compliance and Investigations

CGU reclaims over BRL 10 billion in leniency agreements

The Brazilian Office of the Comptroller-General (“CGU”) has reached a significant milestone by exceeding the mark of BRL 10 billion effectively reclaimed to the Brazilian National Treasury as a result of leniency agreements entered into with companies involved in corruption and other illicit practices. Since 2015, 32 agreements have been entered into, totaling more than BRL 19.3 billion in amounts to be returned, which reinforces CGU’s central role in holding companies accountable and reclaiming embezzled funds.

This progress is the result of the increasingly integrated action between the CGU, the Federal Office of the Attorney-General (“AGU”), and the Federal Public Prosecutor’s Office (“MPF”), which recently executed a cooperation agreement to align procedures and strengthen the enforcement of leniency agreements. The initiative provides more legal certainty and predictability for companies and the public sector itself, further encouraging a more reliable and transparent business environment.

The consolidation of leniency agreements has also driven the implementation of compliance practices in the private sector, thus encouraging companies to invest in mechanisms to curb, detect, and remedy irregularities – which contributes to a more ethical corporate culture.

For more information, access the full article.

Compliance progresses in the healthcare sector, reports Instituto Ética Saúde

The healthcare sector in Brazil has advanced significantly in terms of compliance practices, as demonstrated by an analysis of Instituto Ética Saúde (“IES”) on the development of member companies between 2017 and 2024.

Hospitals, clinics, as well as operating and supplying companies, are increasingly aware of the need to implement integrity programs, driven by regulatory requirements and the growing appreciation of ethics and transparency in the sector’s relations.

Among the main trends are the creation of whistleblowing channels, regular training on ethical conduct, policies to prevent conflicts of interest, and the implementation of risk monitoring systems. The initiative is reinforced by self-regulatory efforts and collaborations between public and private sectors, aiming to elevate governance standards and curb illicit activities such as fraud and corruption

These changes indicate a cultural transformation in this segment, which now perceives the compliance area not just as an obligation, but as a competitive differentiator and a fundamental pillar for the sustainability and reputation of healthcare institutions.

For more information, access the full article and the Corporate Integrity Maturity Report – Analysis of the results of the Annual Self-Assessment Questionnaire of Members of the Ethics Health Institute.

MPF joins investigations into unlawful INSS pension deductions

The MPF has intensified its investigations into irregular deductions from the National Social Security Institute (“INSS”) pension to protect pensioners from fraud and abusive practices. The strategy involves the collaboration of several MPF units, including oversight bodies, which allows those involved to be identified and held accountable rapidly.

The joint action has been fundamental for reclaiming the unlawful amounts deducted, thus reinforcing the rights of INSS pensioners. In addition, the MPF has recommended improvements in the monitoring and transparency systems of the operations carried out by financial institutions and partner agencies to curb further irregularities.

The MPF’s actions underscore its commitment to ethical governance and the protection of public interests, aiming to strengthen public trust in institutions and foment fairer interactions between the state, the financial sector, and society.

For more information, access the full article.

Ministry of Sport partners with sports entities to combat fraud in sports betting

The Ministry of Sport has entered into cooperation agreements with five international entities specializing in sports integrity – Sport Integrity Global Alliance (“SIGA”), International Betting Integrity Association (“IBIA”), Sportradar, Associação de Bets e Fantasy Sport (ABFS), and Genius Sports –, seeking to curb and combat match-fixing, fraud, and other practices that jeopardize the integrity of competitions. The initiative aims to align Brazil with the best global practices, fostering a fairer and safer environment for athletes, clubs, fans, and regulated betting operators.

These entities, which already operate in countries such as Canada, England, and Australia, will provide the Ministry of Sport with qualified information, methodologies, and technological support for monitoring the sports betting market. In addition, they will assist in training professionals responsible for monitoring any suspicious activity, thus reinforcing the Brazilian state’s ability to detect and curb irregularities.

According to the Minister of Sport, André Fufuca, the agreements represent a milestone in the fight against match-fixing in Brazil, strengthening values such as transparency and ethics. The national secretary for sports betting, Giovanni Rocco Neto, emphasized that the technology and expertise of the partner entities will be fundamental to ensuring trustworthy competitions and developing an effective national sports integrity policy.

For more information, access the full article.

White-Collar Crime

STJ vetoes direct access from Public Prosecutor’s Office to COAF reports

On May 14, 2025, the Third Section of the Superior Court of Justice (“STJ”) judged  Special Appeal (“RESP”) No. 2150571, Ordinary Appeal in Habeas Corpus (“RHC”) No. 196,150, and Interlocutory Appeal (“AGRG”) in RHC No. 174,173, to establish that law enforcement agencies cannot directly request Financial Intelligence Reports (“RIFs”) from the Council for Financial Activities Control (“COAF”) without prior judicial authorization.”

The thesis was established by Justice Messod Azulay Neto, to determine that “the direct request for financial intelligence reports by the Public Prosecutor’s Office to COAF, without judicial authorization, is forbidden. Subject 990 of the general repercussion does not authorize the direct request for financial data by criminal prosecution agencies without judicial authorization.”

Within the scope of Subject 990 of the general repercussion, the Federal Supreme Court (“STF”) had validated the submission of COAF reports without prior judicial authorization – whether issued spontaneously or at the request of agencies for criminal purposes –, on the condition that the confidentiality of the information is maintained.

Justice Messod Azulay Neto further distinguished the issues and argued that the STF has authorized COAF to share information without authorization – in contrast to the fact that criminal prosecution agencies can only request information from COAF by judicial decision. According to the justice: “It is clear that COAF does not have the authority to breach bank and tax secrecy. The agency uses the information provided to draft its reports and, if any irregularities are identified, COAF forwards them to the competent bodies for investigation,” he added.

In any case, the standardization adopted is valid and must be applied until the STF unanimously and irrevocably rules on Subject 990.

For more information, access the full article.

STJ invalidates evidence collected in search and seizure without a physical warrant

On May 22, 2025, the Fifth Panel of the STJ invalidated the evidence obtained during a police operation in Brumadinho, Minas Gerais, due to the failure to physically present the judicial search and seizure warrant during the operation, despite its existence. The Superior Court held that the physical presentation of the document – specifically in paper format – is essential to ensure the legality of the evidence, regardless of the existence of prior judicial authorization for the procedure.

In this particular case, which occurred in February 2024, two men were caught in the act and arrested for alleged drug trafficking and unlawful possession of a firearm. However, according to the case records, civil police officers entered the residence, conducted searches, seizures, and arrests without presenting the corresponding judicial warrant.

Initially, the lack of a physical warrant reversed the arrests at the custody hearing. After an appeal by the Public Prosecutor’s Office, the Minas Gerais Court of Justice (“TJ-MG”) ruled that the existence of judicial authorization for the search was sufficient to attest to its lawfulness. However, within the context of the Habeas Corpus (HC nº 965224/STJ) filed with the STJ, the Fifth Panel – presided over by the reporting officer, Justice Ribeiro Dantas – emphasized Article 241 of the Code of Criminal Procedure (“CPP”), restating the need for a physical warrant in order to comply with the principle of lawfulness:

“Consequently, the execution of the judicial order without a valid search and seizure warrant is deemed unlawful, as the warrant – though supported by prior investigations – was not formally issued. As a result, all evidence obtained during the procedure is considered inadmissible.”

For more information, access the full article.

STF upholds use of cell phone evidence seized without warrant at crime scene

On May 21, 2025, the STF upheld the conviction of a thief who had initially been acquitted due to the fact that the evidence gathered by the police – for identification purposes – was considered unlawful. The discussion was held in the Plenary, within the scope of Extraordinary Interlocutory Appeal (“ARE”) No. 1042075, and reported by Justice Dias Toffoli.

In the specific case, the defendant, after stealing a woman’s purse outside a bank in the city of Rio de Janeiro (RJ), dropped her cell phone during his escape. The police examined the device and managed to identify the perpetrator, which led to his conviction in the lower court. However, in the higher court, the Rio de Janeiro Court of Justice (TJ-RJ) acquitted him for considering that access to the phone book and phone calls without judicial authorization violated data and communication confidentiality. Subsequently, the Public Prosecutor’s Office appealed to the STF.

Justice Dias Toffoli, the reporting officer, voted in favor of reinstating the criminal conviction and his position was supported by the other justices. However, Justice Cristiano Zanin emphasized that such understanding was only possible because the expert analysis in the specific case took place before Constitutional Amendment (“EC”) No. 115 and the Internet Framework, which recognize the safeguard of personal data as a fundamental right.

Finally, it is worth mentioning that, due to the complexity of the topic – that is, the validity of evidence gathered through examination without judicial authorization –, it was not possible to establish a decision for the purposes of general repercussion, as the analysis must be carried out on a case-by-case basis.

For more information, please access the full article.

Brazilian Progressive Party appeals to the STF against increase in sentence for public servant offense

On May 27, 2025, the STF Plenary heard the arguments of parties and interested third parties in cases addressing crimes involving public officials. Within this context, it is worth highlighting the discussion held on increased penalties for crimes against honor committed against public officials.

This is due to the fact that the Progressive Party (“PP”) has challenged the rule established in the Penal Code that provides for a one-third increase in the penalty for crimes against honor (libel, slander and defamation) if the offense is committed against a public official in the course of their duties or against the presidents of the Federal Senate, the House of Representatives, or the STF. According to José Rollemberg Leite, attorney for PP, “there’s no need to increase the penalties when the STF itself understands that citizens have the right to criticize public figures”.

It is worth mentioning that the Brazilian Federal Public Defender’s Office (“DPU”) itself supports this argument, as there is no reason for an automatic increase in the sentence due to the public office held.

The STF will schedule the corresponding judgment on the merits in due course.

For more information, please access the full article.

Competition

CADE analyzes more operations in the first quarter of 2025

The Administrative Council for Economic Defense (“CADE”) registered a 25% increase in the number of transactions analyzed during the first quarter of the year, compared to the same period in 2024. This growth mirrors a significant increase in economic activity and in the number of mergers and acquisitions submitted to the agency for clearance.

Among the sectors that notified the most operations to CADE in the same period were Power (30), Industry (26), and Agribusiness (15).

Considering the first quarter of 2025, the average time taken to analyze mergers has been 22 days in general, with around 15 days for transactions submitted under the fast-track proceeding, and 93 days under the regular proceeding.

CADE’s analysis of transactions is crucial to maintaining a sound competitive environment while curbing practices that could harm free competition. The increased number of transactions analyzed can be interpreted as an indication of a more dynamic and competitive market.

Source: The number of operations notified to CADE grows by 25% in the first quarter

CADE enters into settlement agreements on information exchange in human resources departments

On May 15, 2025, CADE’s General Superintendence (“GS”) suspended investigations against six defendants in three administrative proceedings on the exchange of competitively sensitive information between human resources departments, due to the approval of requests for settlement agreements.

Five of these settlement agreements were entered into as part of two proceedings initiated in 2024: (i) the first one investigates the involvement of companies integrating the consumer sector in the Consumer Companies Group (“GECON”); and (ii) the second investigates the involvement of multinational companies in Executive Salary Groups (“GES”) and Executive Group of Benefit Administrators (“GEAB”).

The other agreement refers to a proceeding opened in 2021, which was CADE’s first investigation into healthcare companies’ involvement in the information exchange group MedTech. In 2022, CADE had already entered into six settlement agreements as part of the investigation into the MedTech group. In 2024, CADE rejected the approval of the seventh agreement filed in the same case due to a lack of cooperation with the investigations.

The settlement amounts under these six new agreements amount to approximately BRL 115 million.

Preventive measure confirmed against the Brazilian Union of Music Publishers

 During the 247th Ordinary Judgment Session, CADE’s Tribunal ruled the voluntary appeal filed by the Brazilian Union of Music Publishers (“UBEM”) against the GS’ decision imposing a preventive measure on said entity.

The investigation began after the Brazilian Television System (“SBT”), represented by Demarest, filed a complaint accusing UBEM of collective bargaining and price fixing for synchronization rights. In response to the claims, CADE opened the administrative proceeding No. 08700.008710/2024-88 in February 2025.

As a preventive measure, the authority has determined that UBEM must, in addition to other obligations:

1. refrain from collectively negotiating contract amounts and conditions on behalf of its associates for synchronization rights involving audiovisual works;
2. refrain from using or imposing price lists for negotiating any synchronization rights; and
3. refrain from encouraging or favoring the adoption of uniform commercial conduct between publishers or copyright holders in such a way as to interfere with negotiations on contract amounts or conditions.

The GS is currently investigating the case.