THE PETROBRAS CORRUPTION SCANDAL: COULD THE COMPANY BE PUNISHED BY FCPA ANTI-BRIBERY PROVISIONS?
Recent news are broadcasting one of Brazil’s greatest corruption scandal involving the oil giant Petrobras, along with various other Brazilian and foreign companies. Petrobras’ case turned corporate compliance into a common topic among Brazilian business players in the past year. As most Brazilian companies still take first steps towards entering foreign markets, the ongoing investigations of U.S. Government against Petrobras have raised general awareness on the importance of complying with foreign jurisdictions.Among various legislations that must be observed by foreign companies investing in the United States, the Foreign Corrupt Practices Act is undoubtedly one of the most important. The FCPA has a broad scope of application, as the concept of corrupt practices is very extensive and many foreign companies with business in the U.S. are subjected to its provisions. Furthermore, it encompasses a dangerous combination of high penalties and Government’s rather aggressive prosecution.It is with that in mind that we shall analyze the complex corruption case within Petrobras and its implications in regard of the FCPA. This Article (i) provides an overview of the Petrobras corruption scandal and the principal FCPA anti-bribery provisions, elements and requisites and (ii) analyzes Petrobras’ peculiarities and if it may be considered punishable within the scope of FCPA anti-bribery provisions.