There is a lot of talk right now about whether Brazil can maintain the impressive growth it has experienced in recent years. On February 14th, a Financial Times headline read, “Brazil housing bubble fears as economy teeters,” while The Wall Street Journal reported, “Brazilian data released Friday suggest economic growth has weakened over the past two quarters, illustrating how far a country once considered the darling of emerging-market investors has fallen.” Similar reports are appearing each day.
If Brazil’s economy declines, it will be yet another example of a boom and bust cycle, which is common in Latin America. Not only do countries experience these cycles, the region on the whole is also known for periods of economic expansion followed by precipitous collapse. In the 1970s increased commodity prices led to economic growth that ended abruptly in the 1980s, triggering a sharp debt crisis. In the early 1990s, market-oriented reforms created a surge in short-term...Read more
The FCPA has two main provisions: (i) the anti-bribery provisions; and (ii) the books and records and internal control provisions. The second group is commonly referred to as the “accounting provisions.” (FCPAméricas provides a description of the basics of the FCPA in English, Spanish, and Portuguese.)
When people talk about the FCPA, however, what usually come to mind are just the anti-bribery provisions. While it may be obvious that paying a bribe to a foreign government official to obtain a public contract is a violation of the FCPA, one may not realize that falsifying or failing to keep sufficient records of a transaction may also violate the FCPA if the company is publicly listed in the United States – even if the underlying transaction is entirely legal. As a result, companies tend to overlook ...Read more
Latin America is a region of great diversity, from the food to the languages to the cultures and the people. This also means that the forms of bribery in the region can be extremely diverse too. Nonetheless, there are some common threats that FCPA practitioners in the region tend to confront time and time again.
Corruption risk in Latin America often arises from three sources: the police, regulatory uncertainty, and family-owned businesses. To learn more, watch this complimentary video from the TRACE Anti-Bribery Training Vignettes collection:
The complete collection of these high-level training videos is available through the member-only TRACE Resource Center, an online database of model compliance policies and procedures, local law resources for more than 130 countries, and various other informational documents. For more information on resources available in the TRACE Resource Center or to le...Read more