Page 19 - CORRUPTION LATAM

MONTT GROUP MAGAZINE - 2024
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to Toffoli, then attorney general, as “my father’s friend’s friend,” that character being Lula, then President who appointed Toffoli to the Supreme Court in 2009. After the article was published, the Supreme Court considered it “fake news” and ordered it to be deleted from the Internet. Only public outcry forced the decision to be revoked. Thus, pessimism abounds about the application of anti-corruption measures in Brazil.
Sanctions for directors and executives
Although there is fear of a setback, especially in the business sphere, nevertheless, and despite these annulments of such an important case, Lava Jato created an anti-corruption conditions, as a secondary effect. What’s more, for some experts Lava Jato came to revolutionize the framework of Brazilian compliance that matured a lot in 10 years, to the point that today it has the best professionals in the Region.
In the current corporate scenario, compliance has become a central issue for companies operating in Brazil. The growing complexity of regulations and the intensification of oversight by government bodies require that organizations be increasingly attentive to compliance with standards and legislation. This is not only a legal obligation, but also a commitment to ethics and transparency, which are fundamental to building a solid and trustworthy reputation.
In Brazil, several laws outline the parameters of compliance and establish the responsibility of companies and their directors and executives. Among the most relevant legislations are Law no 12,846/2013 (Anti-Corruption Law), Law no. 6,404/1976 (Share Companies Law), and Law no 9,605/1998 (Environmental Crimes Law). Each of these laws brings a specific set of obligations and sanctions that seek to inhibit illicit practices and promote integrity in business operations.
The Anti-Corruption Law, for example, establishes the objective liability of legal entities for acts of corruption against the public administration, while the Joint Stock Companies Law defines corporate governance standards that seek to ensure transparency and responsibility in
business practices. In turn, the Environmental Crimes Law imposes rigorous sanctions for conduct that causes damage to the environment, reflecting the growing concern for sustainability and environmental responsibility.
In the current corporate situation, compliance has become a central issue for companies operating in Brazil. The growing complexity of regulations and the intensification of oversight by government bodies require that organizations be increasingly attentive to compliance with standards and legislation.
the role of compliance
Compliance refers to the set of practices and policies adopted by companies to ensure that their operations are in accordance with laws, regulations and internal standards. In Brazil, an effective compliance program must address several areas, including anti- corruption, corporate governance and environmentalprotection.
Law no 12,846/2013 (Anti-Corruption Law): This law establishes the objective responsibility of legal entities for acts of corruption against public administration, national or foreign. It introduces severe fines and other administrative sanctions for companies involved in corrupt practices, regardless of proof of individual guilt of their directors or employees. The Anti- Corruption Law also provides for the possibility of leniency agreements, which allow the collaborating company to obtain reductions in sanctions in exchange for information and collaboration with investigations.
Law no 6,404/1976 (Share Companies Law): Defines corporate governance standards for public limited companies, including the responsibility of administrators and the need for transparency and accountability. The Joint Stock Companies Law is essential to ensure investor confidence and the integrity of financial markets, requiring companies to maintain accurate records and disclose relevant information in a timely and accurate manner. Law no 9,605/1998 (Environmental Crimes Law): Provides for criminal and administrative
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