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Brazil Enacts Long-Pending Anti-Corruption Legislation
December 20, 2013
At the end of last month's installment, we began looking at Brazil's Clean Company Law, which imposes corporate civil and administrative liability for bribery of domestic and foreign public officials. We continue our discussion herein.
Covered Legal Entities
The Clean Company Law covers corporations, partnerships, and proprietorships, both for-profit and non-profit. It also subjects to its terms non-Brazilian legal entities that operate through an office, branch, or representation office in Brazil, even if only temporarily. Federal Law No. 12.846/2013, Art. 1. The extraterritorial reach of the law appears to be limited to the actions of Brazilian corporate entities abroad, thus leaving the actions of non-Brazilian entities acting outside of Brazil beyond the scope of the law, even if they have a representative office, branch, or subsidiary in Brazil. See id., Art. 28.
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