Whistleblowing in Brazil
As we welcome Renata Schmerling to WislPort Compliance as our partner for Brazil, it's worth understanding a little about the laws and protections in this region.
Whilst Brazilian Law 12.846/13 (“Anticorruption Law”) and Decree No. 11.129/22, (amendment to the Anticorruption Law), don’t have mandatory requirements for companies to create and maintain internal whistleblowing systems, companies that provide services or are in any sort of commercial relationship with the Public Administration, or that are listed in the 9th?Article of the Law 9.613/1998, are required to install a proper system for whistleblowers.?
In case of proven crimes related to corruption in any of its forms, Brazilian legislation takes into consideration the establishment of such whistleblower programmes as means to reduce the sanctions imposed to the violator, as per the investigation procedures detailed in Decree No. 11.129/22. So whilst not not mandatory for all private sector companies, it is highly recommended to adopt effective internal whistleblowing systems.
Not only though can it reduce sanctions, effective whistleblowing can prevent the wrongdoing that leads to the sanctions in the first place and builds trust with global marketplaces, supply chains, customers, business partners and regulators that they will not be directly or indirectly exposed. Effective whistleblowing programmes in Brazil are a direct competitive advantage in todays global marketplace.
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