Brazil’s Federal Law 12,846/2013, which celebrated its tenth anniversary in August 2023, came to be during a turbulent period in the country, when citizens demanded more transparency from the government and effective prosecution of crimes involving corporations and businessmen.
The law introduced several new enforcement mechanisms, among them the possibility of its enforcement by federal, state and municipal entities; strict liability for corporations accused of illegal acts against national and foreign administrations; corporations’ liability for wrongful acts practiced on their behalf or interest; the possibility of extension of liability to entities pertaining to the same economic group; sanctioning in administrative and civil proceedings; leniency agreements; and compliance programs as a mitigator factor for sanctions imposed based on the law.
The law was largely enforced by federal law enforcement agencies after its first regulation in 2015 by Federal Decree 8,420/2015. Many of the corporations initially sanctioned were involved in the Car Wash Operation, the largest government investigation ever seen in Brazil, which ultimately drew in several politicians and corporations that had links with Petrobras. [1]
Anecdotally, 2023 also marked the end of the Car Wash Operation, after scandals involving leakage of confidential information, controversial investigation methods adopted by prosecutors and judges, and political changes that led to the termination of the task forces in charge of the operation.
The Car Wash case is now past, but its legacy remains alive. Read more
