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Brazil's new Clean Company Law, which establishes penalties for legal entities that engage in corruption or commit fraud in relation to public tenders and government contracts, was enacted to help fulfill Brazil's obligations under the Organisation for Economic Co-operation and Development (OECD) Convention on Combating Bribery of Foreign Public Officials in International Transactions (OECD Anti-Bribery Convention). As discussed in Part Two of this article, violation of the law may result in administrative proceedings being brought against a corporate entity, but another method of enforcement is also authorized.
Civil Judicial Enforcement
The existence of an administrative proceeding against a corporate entity does not preclude the bringing of judicial proceedings against the same entity based on the same alleged illegal conduct. Federal Law No. 12.846/2013, Art. 18. Judicial proceedings must be commenced by the Public Attorney's Office of the relevant level of government harmed by the illegal conduct (i.e., the federal, state or municipal governments) in accordance with the rules of Brazilian civil procedure. Id., Arts. 19 & 20; see also Brazilian Code of Civil Procedure Law No. 7.347 of July 24, 1985.
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