Brazil - OECD Anti-Bribery Convention Report

The OECD Released its Phase 4 Report on Brazil's implementtion of the Anit-Bribery Convention October 17. 

This report details Brazil's achievements and challenges in respect to implementation and enforcement of the OECD Anti-Bribery Convention, as well as progress made since the Phase 3 evaluation in 2014.

The OECD Phase 4 report describes Brazil's efforts to combat foreign bribery, indicating both areas of improvement and challenges that remain.

Enhancements and Strengths:

1. Legal Framework: The report commends Brazil for improving its legal structure, particularly through the adoption of leniency agreements, which allows companies to settle without trial in exchange for cooperating with investigations.

2. Regulatory Cooperation: Regulatory bodies CGU (Comptroller General's Office) and FPS (Federal Public Service) are highlighted for their international cooperation in tackling foreign bribery.

3. Case Resolutions: Brazil has been successful in resolving high-profile cases through leniency agreements, most notably the Odebrecht case, which has become a landmark in transnational corruption investigations.

4. International Engagement: Though not a member of the OECD, Brazil is a party to the Anti-Bribery Convention and has begun accession talks.

Challenges and Concerns:

1. Enforcement Inconsistency: Of the 60 allegations of foreign bribery, only 28 have been investigated, reflecting inconsistencies in the enforcement of antibribery laws.

2. Natural Persons: Despite corporate settlements, no convictions have been made against natural persons, an absence particularly highlighted in the long-pending first-ever criminal antibribery proceeding in Brazil.

3. Statute of Limitations: The current framework has been criticized for being inadequate, especially in light of the acquittal of eight out of nine defendants in an ongoing case due to limitations.

4. Whistleblower Protection: There are concerns about the inadequate provisions to protect whistleblowers, particularly in the private sector.

5. Law Enforcement Independence: Issues have been raised about the independence of the law enforcement agencies involved in investigating and prosecuting cases.

Recommendations:

The report offers a set of recommendations for Brazil, setting a two-year deadline for implementing changes in its anti-corruption measures.

Ongoing and Future Developments:

Brazil's Ministry of Foreign Affairs has acknowledged the OECD report, indicating alignment with the report's recommendations for improving antibribery legislation and practices. A follow-up report is anticipated in October 2025 to assess the implementation of all recommendations.

International Perspective:

Brazil's efforts to combat foreign bribery are situated within a broader international context, considering its potential future OECD membership, ongoing legal cases, and cooperation with other jurisdictions.

In summary, the report serves as a comprehensive evaluation of Brazil's initiatives against foreign bribery, offering critical insights and recommendations for fortifying its anti-corruption framework.