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In recent years, the number of enforcement actions brought under the U.S. Foreign Corrupt Practices Act of 1977 (“FCPA”) has dramatically increased, especially in relation to non-U.S. companies. This is particularly relevant to companies and investors doing, or considering doing business, in countries perceived to present significant risk of public-sector corruption or that have experienced highly-publicized incidents of corruption. In this context and in light of its impressive recent economic development, Brazil’s case deserves a closer look. Indeed, Brazil has been one of the most dynamic business environments in the world over the last few years, achieving the distinction of being the sixth largest economy in the world. However, potential corruption continues to be perceived as a significant challenge.

Due to the heightened scrutiny related to FCPA enforcement activity, international investors doing business or investing in Brazil and elsewhere should be particularly mindful of the importance of FCPA compliance. Brazilian entrepreneurs should also be aware that the adoption of anti-corruption practices, with reliable internal controls and policies to prevent and punish illegal payments, may represent an attractive feature for international investors who are subject to FCPA enforcement, facilitating and adding value to a potential sale of shares or assets. Although this article does not purport to present a full guide for FCPA compliance, it provides an overview of relevant considerations in the Brazilian business environment and of general drivers of FCPA due diligence and compliance for companies doing business or considering investments in Brazil.