As highlighted here, in September 2018 Petrobras (a Brazilian state-owned and state-controlled energy company) entered into agreements with U.S. and Brazilian authorities “in connection with Petrobras’s role in facilitating payments to politicians and political parties in Brazil, as well as a related Brazilian investigation.”

After various credits and deductions for a related law enforcement action in Brazil, the net FCPA settlement was approximately $170 million ($85.3 million DOJ, $85.3 million SEC).

The DOJ action was resolved through a three year non-prosecution agreement pursuant to which Petrobras, among other things, committed to continue to enhance its compliance program and internal controls, including ensuring that its compliance program satisfied the minimum elements set forth in an attachment to the NPA.

Petrobras recently announced that it has “concluded the obligations” set forth in the NPA.

As stated by the company:

“The non-prosecution agreement, which related to Petrobras’ internal controls, accounting records, and financial statements during the period from 2003 to 2012, included certain obligations to be fulfilled by the company. Petrobras has fulfilled these obligations, including continuing to enhance its integrity program and self-reporting to DOJ during the agreement’s three-year term, and has fully complied with the agreement. Accordingly, the agreement is now completed.”

In the release, Salvador Dahan (Petrobras’ Executive Director of Governance and Compliance) stated:

“With the conclusion of the obligations foreseen in the agreement, Petrobras closes an important stage in its recovery trajectory. We have finally turned the page, and the end of the DOJ agreement proves that we are living in new times, with our compliance system being strengthened day by day. We now have a robust control system and anti-corruption measures that go beyond those required by law.”

The release further states:

“Since 2018, Petrobras has continued to improve the effectiveness of its internal controls and consolidate structural and governance changes by strengthening its culture of ethics, integrity, and transparency. The corporate compliance program includes, among other things, an independent Whistleblower Channel, mechanisms to combat fraud and corruption by the companies with which Petrobras does business (Due Diligence), and integrity analyses of all managers, administrators, and employees who work in critical processes (Integrity Background Check). In addition to these measures, the company invests in training on integrity-related topics for its employees, suppliers, and partners. As a result of its commitment to strengthening its governance and integrity practices, Petrobras successfully rejoined the Partnering Against Corruption Initiative (“PACI”), an initiative of the World Economic Forum (“WEF”) focused on anti-corruption and transparency issues.”

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