Brazil’s anti-corruption law could strain Chinese FDI

Author: Zoe Thomas | Published: 23 Oct 2013
  • The relationship between Chinese companies and Brazil may be tested as both countries enforce new anti-corruptions regulations;
  • For many multinational companies implementation will not be an issue, but for Chinese employees who have not been exposed to the FCPA or UK Bribery Act, more training may be required;
  • Under the law, which takes effect early next year, intent need not be proven to commit corruption, and corporate entities can be liable for bribery;
  • Anti-corruption regimes launched elsewhere in Latin America may impose greater transparency requirements on Chinese companies investing and developing in those jurisdictions.

Brazil’s new anti-corruption law may place a strain on companies based in its biggest trading partner – China. Stricter enforcement in both countries is expected to force companies to implement more robust compliance programmes.