Why international companies need a Brazilian lawyer

January 3, 2021
Due Diligence Services in Brazil
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Why choose a Brazilian Lawyer

Any major new law is going to be combed over from every angle to make sure it is fully understood. That is currently happening with the new anti-corruption legislation that was passed in Brazil and became effective last year.

The law establishes a comprehensive system of liability for individual and corporate acts of corruption against Brazilian and foreign public officials or governmental bodies. It will affect any organization that conducts business directly or indirectly in Brazil—whether through an employee, independent contractor, subsidiary or as part of a supply chain.

A recent article from Mondaq broke down the law and pulled out some important information that any international employer needs to know.

“The anti-corruption law applies to companies, regardless of their corporate or legal form, whether foreign or domiciled in Brazil, and whether the unlawful act is committed within or outside Brazilian territory,” the article reads. “Civil liability extends to the entity’s directors, officers, employees and agents who commit, participate, or aid in the commission of the unlawful act, whether the act is performed in Brazil or abroad.”

The piece added that any company that has or is looking to expand and have a global reach, whether it is direct sales or as part of a supply chain, would be wise to seek out Brazilian lawyers or international legal counsel. Once acquired, companies need to consider implementing a corporate compliance program that will take into account all major anti-corruption laws to ensure the business is compliant.

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