LENIENCY AGREEMENTS IN BRAZIL
The Brazilian Anticorruption Law (BAC), besides other benefits, states that the relevant authorities may enter into agreements (leniency agreements) with legal entities which have practiced illicit acts and have effectively cooperated with the investigations and with the administrative proceedings.
In sum, a leniency agreement may be entered into by the investigated legal entity and the Office of Comptroller-General (CGU) so long as the cooperation results in the identification of other individuals or legal entities involved in the illicit conduct, and by the receiptby the authorities of information and documents proving the harmful act was committed.
Moreover, the legal entity must also express an interest in collaborating with the investigation of the harmful act, completely cease its involvement in the practice investigated as of the date of submission of the proposed agreement, admit its participation in the illicit act and finally cooperate fully, and on a permanent basis, with the investigation.
The CGU has the authority to execute leniency agreements within the scope of the Federal Executive Branch and in cases where harmful acts are committed against the foreign public administration.
The proposalhas to be made up to the end of the administrative proceeding, kept confidential and access to its contents must be restricted, with the exception of disclosure or sharing through the express authorisation of the proponent and consent of CGU.
Rejection of the proposed leniency agreement cannot result in recognition of the practice of the harmful act under investigation, in respect of which no disclosures may be made. The proposing legal entity may withdraw the proposed leniency agreement at any time prior to signing. If the agreement is not executed, the documents submitted will be returned to the proposing legal entity and such documents may not be used for purposes of assigning liability.
Jan-Mar 2016 Issue
KLA – Koury Lopes Advogados