About compliance

In the business world, compliance can be defined as a set of corporate management tools for the development of internal risk control and mitigation processes.

Why has compliance become a priority for Brazilian companies?

With the enactment of Law 12846/13, effective from January 29, 2014, all Brazilian companies and its executives are now exposed to serious consequences, in the civil and administrative spheres, of unfair practices towards national or foreign governments, as well infringements committed in their interest or benefit, whether or not exclusive to consumers, customers, invested entities and other people. This defines what being "good for business" means.

Polícia Federal

But was not corruption already punished before that?

The liability was limited to those who took part in a wrongful act, as the agent or principal. Currently, companies are held accountable with strict liability in the civil and administrative spheres, even if they hadn't authorized the wrongful act or their officers were not aware of it.
art. 1º, §3º Managers or administrators will be held accountable to the extent of their culpability.

What are the legal penalties?

Fine of 0,1% to 20% of the company's revenues (if it is not possible to determine, the fine will be determined with a value from R$ 6.000 to R$ 60.000.000)

Suspension of activities

Compulsory dissolution

Publication of convictions
(newspapers and CNEP (National Register of Punished Companies))

How “compliance“ can help?

Protection of executives against guilty plea by omission. Reduced penalties applicable to the company.

Article 7 - It will be taken into account on the application of sanctions: (...) VII - The existence of internal mechanisms and procedures for integrity, auditing and encouraging whistleblowing and the effective application of codes of ethics and conduct within the scope of legal entity;” (emphasis added)

Meritum

How to build an effective compliance program?

Having internal rules and codes of conduct is not enough. There is no magic formula that applies to all companies.

In practical terms, a good compliance program should have at least:

What is your company to gain by using Meritum?

Better protection for executives

Reduced training costs

Low risk of misconduct

Reduction of sentences in case of conviction

Keeping employees and partners always trained and aligned with the company philosophy

Reduction of fines in case of conviction