Companies Accountable for the Corrupt Acts of Third Parties

Brazil’s Clean Companies Act (CCA) holds companies liable for bribery and corruption in Brazil, as well as overseas. The CCA was enacted in 2014 to implement the OECD anti-bribery convention standards.

In addition to the anti-bribery and corruption provisions, the Act has a provision that requires companies to keep their books and records accurate and fairly reflect the transactions and dispositions of the assets of the company.

Unlike the FCPA or UKBA, the CCA imposes strict civil and administrative liability on companies doing business in Brazil for bribery of Brazilian or foreign public officials as well as fraud connected to public tenders and bid rigging, meaning they can be liable without being at fault. It also includes 16 guidelines on how a company’s compliance program will be assessed. One of the guidelines is a requirement to perform third-party due diligence and monitoring. Other guidelines include:

  • Commitment of senior management to the ABAC program
  • Documentation and communication of compliance policies
  • Periodic bribery and corruption risk assessments
  • Ongoing third party due diligence
  • Code-of-conduct training for employees, equity holders and third parties
  • Internal controls to ensure books and records are complete
  • Monitor, test and review program policies and procedures
  • Establish reporting channels and protect whistleblowers

 

Compliance Made Easy

Hiperos 3PM ABAC Accelerator helps companies simplify and streamline CCA compliance by centralizing third party information and workflows, automating and documenting due diligence, assessment and scoring of third parties, managing only third parties posing corruption risks and monitoring risk factors continuously with data directly from leading data providers. All material ABAC issues and actions taken are recorded in a central “book of record” with a verifiable audit trail. Learn more