Matteson Ellis Discusses the Corruption Outlook and the FCPA in Brazil and Mexico in Latinvex
"Brazil Corruption: Lula Return Raises Concern"
Matteson Ellis discussed what Luiz Inacio Lula da Silva's return to Brazil's presidency means for corruption risk in the country. "The fact that Lula da Silva, someone who was so centrally implicated in Lava Jato, is President once again could signal more corruption risk for companies doing business in the country going forward," Ellis noted, adding that " [t]his will lead to greater FCPA compliance risks at play when doing business in the country. When local enforcement no longer creates a strong deterrent effect, companies can expect more frequent bribe requests locally." Only one U.S. Foreign Corrupt Practices Act (FCPA) case in 2022 involved conduct in Mexico. Ellis suspects that part of the drop might be attributable to less evidence sharing and other types of investigative cooperation between U.S. authorities and the Andrés Manuel López Obrador (AMLO) Administration, resulting in fewer cases. "At the same time, corruption risk in Mexico remains pronounced. International companies operating under heavy regulatory regimes locally might feel squeezed by officials giving rise to corruption risk," Ellis said.