The Lain American Lawyer: March 2018 Latam_March 2018 | Page 10

News
Corruption and bribery remain biggest compliance-related risks in Brazil
Corporate investigations leading to increased workload for firms as local authorities implement
compulsory compliance rules
The majority of companies in Brazil
are adopting, or planning to adopt,
stringent compliance policies as
the country becomes less tolerant
of corruption, according to new
research by The Latin American
Lawyer.
The move is more evident in the
wake of new legal requirements
for companies doing business with
certain Brazilian local governments
to have a compliance policy. This,
in turn, is generating opportunities
for law firms as well as specialist
compliance advisors.
Both the state government in Rio
de Janeiro and the Federal District
authorities have implemented laws
to make mandatory for companies
that wish to enter into contracts
with the public administration
to have a compliance program in
place. This is expected to create
more demand for legal services
covering risks assessments,
compliance implementation, and
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adoption of global compliance rules
as well as corporate investigations.
According to André I. Fonseca,
a partner at Felsberg in São Paulo,
international clients should be
aware of the local regulations and
adapt their global policies if and
when necessary. He believes there
are opportunities for law firms to
assist in internal investigations
and potential legal measures to be
adopted in case of breach of the code
of conduct and internal rules of the
company.
Renata Muzzi Gomes de Almeida,
a partner at TozziniFreire, adds
that clients in Brazil should start
by conducting a risk assessment
in order to understand the specific
needs of their compliance plan.
Brazilian lawyers participating
in the research note an increase in
demand from foreign clients with
over 60% of them now requiring
law firms to certify anti-corruption
compliance, including FCPA
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compliance.
Education must play a key part,
says Isabel Franco, a partner at
KLA - Koury Lopes Advogados.
Isabel Franco, KLA - Koury Lopes
Advogados
She cautions that there is still a lack
of understanding of compliance
issues both by companies and some
lawyers with an increasing need to
raise awareness in Brazil.
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• THE LATIN AMERICAN LAWYER • March 2018
www.thelatinamericanlawyer.com