PARTICIPANTS’ PAPERSEFFECTIVE LEGAL AND PRACTICAL MEASURES FOR COMBATINGCORRUPTION: A CRIMINAL JUSTICE RESPONSE
Marco César dos Santos Sousa*

I. INTRODUCTION
This paper intends to analyse the current situation of the Federative Republic of Brazil regarding
corruption: its consequences; preventive and repressive measures; and the native legal system.
Corruption has existed since the birth of organized society and stands as an unwanted reality which
undermines the effectiveness of public policies and the economic growth of a country, in developed nations
as much as in those still developing.
Since the beginning of Brazil’s re-democratization, in the late 1970s, there was a progressive
densification of corruption indictments and also an increase in the feeling that it had spread desperately, as asocial metastasis. The increase in indictments was certainly a result of a truly socio-cultural and behaviouraltransformation of the Brazilian people, who woke up and faced the problem, trying to reach another level ofrelationship with their government, demanding transparency and ethical principles; fair punishment; and therecovery of the damages caused to society.
The Brazilian government, aware of the current need to provide a better response to people’s claims
regarding corruption, has designed policies to combat corruption systematically. Brazilian society has
witnessed the articulated and integrated way in which corruption is being tackled in the country today, withthe co-operation of all the state defence agencies in this endeavour. As a result, never before have so many
illicit schemes been uncovered and so many corrupt people been arrested.
In order to maximize the preventive and repressive measures against corruption and to follow
international development on this matter, the Brazilian government has been increasing and consolidating
its relationship with other countries, aiming for mutual co-operation and integration.

II. THE STRUCTURE OF THE GOVERNMENT OF
THE FEDERATIVE REPUBLIC OF BRAZILThe Federative Republic of Brazil, formed by the indissoluble union of States and Municipalities, as wellas the Federal District, is a Legal Democratic State and is found on sovereignty, citizenship, the dignity of
the individual, the social values of labour and free enterprise, and political pluralism.
The exercise of power within the structure of the Brazilian Federative Republic is attributed to distinct
and independent entities, each with its own particular function, with further provision for a control systemamong them, so as not to allow the possibility of procedures that are in disagreement with the Law or theConstitution. The executive, legislature and judiciary are the three branches of government.
The executive branch is exercised by the President of the Republic, assisted by the Ministers of State. It
is responsible for carrying out the aims of the State, by applying the policies and programmes towards thispurpose.
The federal legislative power is exercised by the bicameral body that is the National Congress, which has* Police Chief – Director of the Inspection Division, Department of Internal Affairs, Civil Police of the Federal District,Brasília, Brazil.

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two houses: the Chamber of Deputies and the Federal Senate. It is responsible for the elaboration of laws.
The Legislative Branch can also reckon upon the National Accounts Court’s aid for guidance in carrying out
inspection procedures of the national entities with regards to accounts, finance, budget, operations and assets.
The judiciary has its functional, administrative and financial autonomy guaranteed by the Constitution. It
is responsible for the solution of conflicts among citizens, entities and the State.
Every branch of government has its own internal control system to audit the accounts, finances, budgets,
operations and assets of the Union and of entities of direct and indirect public administration, to ensure
legality, legitimacy, economic efficiency, and accountability in the use of grants and in granting tax relief or
expanding tax incentives.
Based on these principles, the Federal Court of Accounts and the State Courts of Accounts, acting inconcert with legislative bodies, exercise external control of all branches and of all organs and agencies at
every level of Brazilian government.

BRAZILIAN ADMINISTRATIVE STRUCTURE

III. MATERIAL AND PROCEDURAL WARRANTIES ESTABLISHED BY THE
CURRENT FEDERAL CONSTITUTION
The Representatives of the Brazilian People, on 5 October 1988, convened in the National Constituent
Assembly to institute a democratic state for the purpose of ensuring the exercise of social and individual
rights, liberty, security, well-being, development, equality and justice as supreme values of a fraternal,
pluralist and unprejudiced society, founded on social harmony and committed, in the internal andinternational orders, to the peaceful settlement of disputes, and promulgated the country’s present Federal
Constitution.
The extensive fifth article of the Constitution establishes material and procedural warranties, entitledFundamental Rights and Guarantees – Individual and Collective Rights and Duties, some of which areimportant to quote:(i)

No one shall be obliged to do or refrain from doing something except by virtue of law (II);39

RESOURCE MATERIAL SERIES No.77(ii)

No one shall be submitted to torture or to inhuman or degrading treatment (III);(iii) The home is the inviolable refuge of the individual, and no one may enter therein without theconsent of the dweller, except in the event of “flagrante delicto” or disaster, or to provide help, or,during the day, by court order (XI);(iv)

The secrecy of correspondence and of telegraphic, data and telephone communications is inviolable,
except, in the latter case, by court order, in the cases and in the manner prescribed by law for the
purposes of criminal investigation or criminal procedural finding of facts (XII);(v)

There is no crime without a previous law to define it, nor a punishment without a previous legal
combination (XXXIX);(vi)

Penal law shall not be retroactive, except to benefit the defendant (XL);(vii) No punishment shall go beyond the person of the convict, and the obligation to compensate for thedamage, as well as the decreeing of loss of assets may, under the terms of the law, be extended to thesuccessors and executed against them, up to the limit of the value of the assets transferred (XLV);(viii) The law shall regulate the individualization of punishment and shall adopt the following, among
others (XLVI):a) deprivation or restriction of freedom;b) loss of assets;c) fine;d) alternative rendering of social service;e) suspension or deprivation of rights.
(ix)

No one shall undergo legal proceeding or sentencing save by the competent authority (LIII);(x)

Litigants, in judicial or administrative processes, as well as defendants in general, are ensured of
the adversary system and of full defense, with the means and resources inherent to it (LV);(xi)

Evidence obtained through illicit means are unacceptable in the process (LVI);(xii) No one shall be considered guilty before the issuing of a final and unappealable penal sentence (LVII);

IV. CORRUPTION IN THE FEDERATIVE REPUBLIC OF BRAZIL
The first records of corruption in Brazil date from the 16th Century, during the period of Portuguesecolonization. In those days, it was common, among public officials, who were responsible for the surveillanceof contraband and other misdemeanours, to illegally trade in Brazilian products, such as wood, spices, gold,
diamonds, etc.
In the new period of Brazilian history, when independence had been declared and the Republic
proclaimed, new forms of corruption were born.
One such form of corruption was related to the attainment of contracts from the government for public
work. The trading in influence resulted in easy illegal money for the corrupted public officials.
Another form of corruption was electoral corruption. To be part of politics represented a guaranteed way
to quick and easy enrichment, without, most of the time, any obligation towards promises made during the
campaign period. During that period, in the early years of the Republic, emerged the “halter vote”, or thevote forcefully imposed by the landlords on their employees and dependents. Creative forms of forcing thevotes were born, such as an unusual one in which voters received one shoe during the election process andthe other after the results.
From 1964 to 1985, Brazil was under a military dictatorship. In that period, there were many records ofadministrative misdemeanours, such as abuse of functions, trading in influence and embezzlement of public
property by public servants. The government established censure, which restricted the important role of thefree press in questioning and exposing the illegal activities of public servants.
With the end of the dictatorship in 1985 a re-democratization occurred, and civil society mobilized itself,
demanding immediate changes, one of which was a direct vote for president.

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In 1992 Brazilian history reached a watermark in corruption scandals with the “impeachment” ofPresident Fernando Collor. A young, popular and charismatic President, with innovative ideas, Fernando
Collor was caught in a massive scheme of misappropriation of money, based on blackmail and involving
resources of the Federal Administration.
In recent years, Brazilian society has lived with frequent corruption scandals, exposed by the media. The
government of Luis Inácio Lula Da Silva, our current President, was shaken by an enormous political crisis
created by the “Mensalão” scandal. This was a scheme in which some politicians were accused of receiving
money from the government to vote on projects according to the government’s interests.
Brazilian people have witnessed the strengthening of the “fourth power”, represented by the press,
nowadays responsible for the exposure of many cases of corruption via the Public Administration. The press
is assuming its natural social role, contributing to Brazil’s development. This role, nevertheless, is aconsequence of Brazil’s wake-up call, and its government has an important role in this new reality. The
effective work done by some institutions and state agencies in combating corruption has provided all theinformation contained in the scandals printed and broadcast by the press. The courageous initiative of thegovernment shows its disposition to change the course of history.
Repressive measures have been adopted with notable results in many areas. Large investments havebeen made in preventive measures, such as the creation of Control and Inspection Agencies, which areresponsible, among other things, for the inspection of the use of public property and assets, for the creationof methods that provide transparency of all public activities, and for encouraging public thirst for theacquisition of knowledge of government activities.
Discussion with civil society transformed corruption into the main theme of many types of manifestations,from professional seminars, in which are discussed technical issues on its combat, to academic theses,
advertisement campaigns, songs and movies.

V. BRAZIL’S FIGHT AGAINST CORRUPTION
The Brazilian government established an effective politics of systematic resistance to corruption, in
which initiatives of preventive character are privileged, and are used in conjunction with repressive actionsof dismantling of organized groups which have acted for such a long time in the Public Administration.
In order to confront the problem in an integrated and articulated form, the government encouraged theunion of all the defence organs of the State in this work. The result was the uncovering of many scandals ofillicit schemes that defrauded the Public Administration and effective arrest of corrupt public agents.
In the Executive, three institutions currently assume the leadership in the war against corruption: The
Public Prosecution Service, the Federal Police and the Office of the Controller General. In recent years, suchinstitutions have earned respect nationally and internationally, due to their effective work in the fight against
corruption, accomplished in an absolutely impersonal way, without any interference by political parties that
could compromise their performance.

A. Institutional Mechanisms
1. Public Prosecution
The Constitution of 1988 created the Public Prosecution Service, with the function of defending thejuridical order, the democratic regime, social and individual inalienable interests, and taking care of thefulfillment of the law. It is a permanent institution, essential for the jurisdictional function of the State, andholds functional, administrative and financial autonomy.
The Brazilian Constitution, in its Article 129, attributes to the Public Prosecution Service the following
functions: to promote, privately, the public penal action; to promote the civil inquiry and the public civil
action, for the protection of the social and public patrimony, of the environment and other collective anddiffuse interests; to send on the notifications on the administrative procedures of its competence, demanding
information and documents to inform it; and to perform external control of police activity.

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2. Federal Police Department
According to the Federal Constitution, in Article 144, first paragraph, and the Law No. 10,683, of 28 May
2003, in Article 27, seventh paragraph, it is attributed to the Federal Police Department: to forbid and verify
penal infractions against the social and political order or on detriment of assets, services and interests of theUnion or its autarchic entity and public companies, as well as other infractions which practice causeinterstate and international repercussions and demand uniform repression. It carries out, exclusively, thefunctions of Judiciary Police of the Union. On the use of its attributions, the Department that investigates,
looking for the repression and prevention of crimes, fulfills a strategic role in the fight against corruption allover Brazilian territory.
The Federal Police Department has been developing important and effective progress in the fight against
corruption. It is important to quote that since January 2003, more than a hundred Special Operations of theFederal Police were carried out with the specific aim of combating corruption. As a result, 2,097 people werearrested, among which 825 were public servants. More than 80 of these operations were on a large scale,focused at dismantling entire criminal groups, most of which had been operating for a long time prior to theformation of the current government.
The dismantled criminal organizations were specialized in crimes against the tax order, money laundering,
fraud in public procurement and embezzlement of public funds, with the participation of public servants of thethree branches, including social welfare tax auditors, which caused large losses to the state treasury.
As an example, Special Operation Hurricane, carried out by the Federal Police, was revealed on 13 April
2007, showing a new angle of Brazilian justice to its society. In this operation, in which 400 agents
participated, not only “Bicheiros” (owners of a kind of clandestine lottery in which names of animals aresubstituted for numbers) and lawyers accused of illegal gambling, but also civil and federal police officers;
judges and high court judges, who were suspected of selling sentences; and a member of the Federal Public
Prosecution, were arrested. This operation started when a judge from Rio de Janeiro authorized telephonicinterception. By the infiltration of some undercover agents, some important documents were photographedand information gathered on the investigation. The investigation resulted in 25 arrests, and in addition thecapture of two tons of documents, 19 weapons, more than 500 pieces of jewellery, 51 luxury cars and a few
million reals in cash.
The Federal Police has occupied a noticeable position in the government’s strategies, redeemingsociety’s credibility in the Public Administration, which was weakening progressively with the strengtheningof organized crime. By highlighting the spurious relationship between illicit actors and public servants, theFederal Police revives trust in the government’s repressive measures and spreads throughout the Public
Administration, preventively, the idea of punishment as consequence for corrupt acts.
Since 1997, many actions taken by the Federal Police have caused cuts in the institution’s own flesh,since many “bad cops” were uncovered in investigations related to organized crime. Between 2003 and2004, at least 110 federal police officers were formally accused.
During 2007 the Federal Police intensified its actions against tax order and financial crimes. As of June
2007, 166 special operations had been executed, resulting in the arrestments of 2,126 people, among whichwere contractors, currency dealers, smugglers and other suspects, including 220 public servants.
Most of these operations were attained by the Federal Police with the aid of the Brazilian Federal
Revenue Secretariat. At least 60% of the missions resulted in formal accusations against withholders
involved in money laundering and tax evasion schemes. This new strategy reveals that the institution,
besides scattering criminal organizations, many of which had ramifications in the Public Administration, also
became a strong way to enhance the Federal Treasury’s gathering, by recovering public money through legal
sanctions applied to the defrauder.
As of 10 December 2007, the Federal Police executed 179 Special Operations, resulting in 2,693 arrests,
among which 308 were public servants, including 14 federal police officers. Some of them are worth noting:42

138TH INTERNATIONAL SENIOR SEMINARPARTICIPANTS’ PAPERS(i) Operation ANANIASThe Federal Police, in association with the IBAMA – Brazilian Environmental Institute, on 2 March
unleashed this operation in order to arrest 30 members of a gang specialized in crimes against theenvironment, which acted near Altamira City. After seven months of intense investigation, a complex
scheme involving lumberjacks, auditors and public servants was scattered.
(ii) Operation CENTIPEDE
The Federal Police, on 20 April, executed this operation in order to break up a gang which had
committed, for more than 10 years, crimes such as notarial frauds, illegal occupancy of Federal property,
crimes against the financial system and corruption of public servants.
(iii) Operation HEAVENThe Federal Police, in association with the Norwegian Police, on 9 May executed this operation in order
to combat a Norwegian criminal gang, specialized in money laundering, using the real estate investment
market from Rio Grande do Norte State. Many arrests were made in the northeastern States of Rio Grande
do Norte and Paraíba, and also in Norway.
(iv) Operation FREUD
This operation was executed on 19 June and was developed by the Social Security Task Force, formed by
the Federal Police, the Federal Public Prosecution and the Social Security Ministry. Sixteen people werearrested, accused of participation in a gang responsible for defrauding the Social Security in Minas Gerais State.
Twenty-five court orders for search and seizure warrants of residences, offices and doctors’ offices were
executed in the metropolitan area of Belo Horizonte City. The gang was composed of National Health andSecurity Service servants, including expert doctors, auditors and counterfeiters who acted to obtain fraudulent
National Health and Security Service benefits. Most of the frauds involved psychiatric illnesses. During theinvestigations many auditors’ offices were identified. They were used to attract interested people to obtain
National Health and Security Service benefits – illness assistance and disability retirement – in a deceitful way.
(v) Operation MATAMENTO
This operation was executed on 27 June in the northern city of Marabá. It aimed to accomplish 18 arrests
and to execute 20 search and seizure warrants, sent off by the State Justice of Pará. Fifteen people werearrested, among which were six military policemen and a business-woman of that city. They seized about U$
90,000,00 (ninety thousand dollars) in cash, two kilos of cocaine and many weapons. The initialinvestigations showed the participation of military police officers in drug trafficking and in an exterminationgroup, which was responsible for at least 10 deaths in that year alone.

3. Office of the Controller General
The Office of the Controller General (CGU) was created by Law No. 10,683 on 28 May 2003, and acts inall the agencies and entities of the Federal Executive as the central agency for internal control and audit,
disciplinary action and ombudsman action. It also develops actions to promote transparency and prevent
corruption, which are at the core of the Federal Government’s proposed policy and basic target programme.
In addition to acting in all phases of control, the Office of the Controller General also focuses on theexecution of typical functions of an anti-corruption agency.

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The Office’s structure includes the Secretariat for Corruption Prevention and Strategic Information - the
SPCI - which concentrates actions towards corruption prevention and promotion of transparency within thescope of the Federal Government. This Secretariat is also responsible for the co-ordination of specificactivities to prevent corruption of foreign public officials in international business transactions, and for themonitoring of the implementation of the OECD, OAS and UN international conventions against corruption.
Also included in the office’s structure is the Federal Secretariat of Internal Control, responsible, among
other functions, for the monitoring and the evaluation of the execution of government actions, theapplication of budgetary allocations in the execution of such actions, and the administrative performance of
those public officials responsible for their implementation.
In order to stimulate the discussion and open it up to civil society, the office created the Council for
Public Transparency and Fight against Corruption. Composed of 20 members and an equal number ofrepresentatives of public authorities and of entities from civil society, among which associations of workers,
contractors, lawyers, journalists and churches, it is responsible for the discussion and suggestion of
measures for perfecting and reinforcing mechanisms and policies for transparency in public administrationand for fighting corruption.
One of the top priority actions of the Office of the Controller General is to ensure Brazilian society isaware of the importance of the participation of citizens in controlling the use of public resources. Many
programmes and activities were carried out in an attempt to incite such participation, in order to form avigilant and an active society, which worries and fights to maintain rectitude in public expenses.
Some of these main programmes and activities are worth noting:(i) Program of Auditing based on Randomized Public Selection
Every month, 60 municipal areas are selected in a random and impersonal way for an inspection of theutilization of their federal resources. More recently, this mechanism’s aim was amplified, in order to selectand inspect, randomly, larger federal programmes which are executed by State Governments.
(ii) Program for Training Public Officials
A broad programme was developed for training municipal administrative servants, in order to avoid
mistakes made as a result of lack of knowledge of the rules that govern the execution of public expenses.
This programme was initiated with many regional seminars and, in a short time, it intends to provide
distance training mechanisms, available throughout the entire Republic.
(iii) Mobilization of Civil Society
This programme is directed at community leaders and members of the various local councils in charge ofmonitoring and inspecting the execution of social programmes carried out by federal resources. It intends todevelop and perfect the inspection actions carried out by the councils and the community bodies.
(iv) “Keep a Sharp Eye on Public Money” Guide
Teaches citizens their civil rights; the responsibilities and duties of Municipal, State and Federal
Agencies and Offices; the destination of public funds; the ways to inspect use of funds; and other information
regarding the use of public money. It is available in print or on the Office’s webpage:
http://www.cgu.gov.br/olho_vivo/Recursos/Publicacoes/arquivos/cartillha_olhoVivo.pdf.
(v) Transparency Portal
This mechanism provides a list of all the Federal resources transferred throughout the country. The
portal is freely available for consultation by any interested citizen, at www.portaldatransparencia.gov.br, andall the information is presented in simple and accessible language, to guarantee comprehension.
(vi) Program for Qualification in Disciplinary Administrative Processes
Due to the lack of specialized public servants capable of detecting and investigating embezzlement andother transgressions in the public sector, this programme prepares public agents to carry out such tasks, inorder to reduce impunity.

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138TH INTERNATIONAL SENIOR SEMINARPARTICIPANTS’ PAPERS(vii) Auditing within the Federal Administration
During 2003 and 2004, the Office carried out 6,000 audits in Federal bodies and passed on to the Court of
Accounts over 2,500 Special Balance Sheets.
(viii) National Program of Capacity Building and Training for the Combating of Corruption and Money
Laundering
This programme was developed within the scope of the National Strategy to Combat Corruption andMoney Laundering. It is directed at public agents involved in combating corruption and money laundering,such as judges, police authorities, prosecutors and tax agents.
In order to perfect and improve the instruments and the techniques used in prevention and combat ofcorruption, the Office of the Controller General maintains convention and partnership with public offices,civil society and non-governmental organizations (NGOs), such as:(a) Project Fighting Corruption in Brazil
This is a convention between the Office of the Controller General and the Embassy of the United
Kingdom in Brazil, in order to perfect Brazilian auditors’ capacity to identify illegal practices andembezzlement of public resources.
(b) Technical Co-operation between CGU and Brazil Transparency (NGO)This is a convention of technical co-operation between the Office of the Controller General and Brazil
Transparency, an NGO, in order to provide technical aid regarding the definition of strategies andmechanisms to prevent corruption.
(c) UNODC Convention
This is a convention between the Office of the Controller General and the United Nations Office on
Drugs and Crime, in order to assist the Brazilian government in the realization of a Global Forum to combat
corruption (Brasília, June 2005), and in establishing mechanisms to enable public servants with auditing andinvestigation techniques to formulate a national integrity system and a national strategic plan against
corruption.
4. Department of Asset Recovery and International Legal Cooperation
The Department of Asset Recovery and International Cooperation, subordinated to the Ministry ofJustice, was created by Decree No. 4,991 on 18 February 2004. This department is responsible for
identifying threats, defining effective and efficient policies, and developing an anti-money laundering culture.
The main objective is to recover assets sent abroad illegally and the products of criminal activities, such as
those deriving from illegal drug trafficking, illegal weapon trafficking, corruption and misappropriation of
public funds, etc.
The DRCI is the competent agency to link, integrate and propose government actions and to co-ordinate
the Brazilian’s State’s action on combating money laundering, transnational organized crime, recovery ofassets and international legal co-operation; to negotiate agreements and co-ordinate the execution ofinternational legal co-operation; and to instruct, issue opinions on and co-ordinate the execution of active
and passive international legal co-operation, including international letters rogatory, etc.
5. Financial Activities Council Control
The Financial Activities Council Control (COAF), subordinated to the Ministry of Finance, was created by
Law No. 9,613 on 3 March 1998. This council is responsible for disciplining, enforcing administrative
penalties, and receiving, examining and identifying suspected illegal activities linked to money laundering.
6. Civil Police of the Federal District
According to the Federal Constitution, Article 144, fourth paragraph, it is attributed to the Civil Polices,
excepting the Union attributions, the functions of the Judicial Police and the investigation of penal
infractions, excluding military crimes. As the Federal Police Department, the Civil Polices are also
responsible for the investigation, repression and prevention of crimes. Each state, territory and the Federal
District has its own Civil Police, with precinct jurisdiction.

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The Federal District is the Capital of Brazil and, therefore, the political, judicial, legislative andadministrative centre of the country. In order to fulfill its role in the public security system, the Civil Policeof the Federal District has excelled at constant improving of investigative procedures, with emphasis on theintelligence and technical police fields. In 2008, the Institution celebrated its 200th anniversary, proud of its
unrestricted respect of fundamental rights, its full integration with society, its honesty, its impartiality, its
pro-activity, and its total engagement with the preservation of the public order and the safety of the citizens
and the endowment.
Through the last years, the Civil Police of the Federal District has played an important role in the battle
against corruption, unleashing many operations in order to dismantle organized groups of criminals responsible
for a great amount of losses to the State Treasury. Some of these operations are worth highlighting:(i) Operation AQUARELA
A Task Force, formed by the Civil Police of the Federal District and the Federal Public Prosecution,
executed this operation in order to arrest suspects of committing crimes against the Public Administration,embezzlement of public funds, money laundering, bidding fraud and criminal association. Among thesuspects was a former president of a State Bank. As a result, 20 people were arrested in Brasília and in otherstates of Brazil. During the operation, some weapons; 130 computers; 95 expensive watches; many precious
stones; 200,000 US dollars in cash; and hundreds of documents were seized. It is assumed thatapproximately 30 million US dollars were deviated.
(ii) Operation TENTACLESThe Civil Police of the Federal District, on 28 April 2005, executed this operation in order to arrest agang formed by tax auditors; retired tax auditors; accountants; lawyers; entrepreneurs; and some otherpublic servants from the State Treasury Agency, who were accused of crimes, among which money
laundering; criminal association; influence trafficking; active corruption; crimes against the tax order; andothers. As a result, 13 people were arrested and later accused in public criminal prosecutions. It is assumed
that approximately 25 million US dollars were deviated from the State Treasury.
(iii) Operation GALILEU
The Civil Police of the Federal District Police, on November 2004, initiated an investigation which led toa gang specialized in committing frauds on official examinations for government posts and for private
universities. The leading member was a public servant, who confessed to some of the frauds. The groupused to sell the answers to the examinations, the theme of the compositions and, sometimes, even the
inclusion of the lists of those who passed, charging the candidate from 25,000 to 35,000 US dollars. As aresult, 80 people were arrested, among whom were a military police officers and some public servants.

VI. BRAZIL’S CRIMINAL PROCEDURES
According to the Federal Constitution, in its Article 144, the investigation of criminal activities, excluding
military crimes, is attributed to the Federal and the Civil Polices, as explained above.
After the occurrence of a crime, once the Federal or the Civil Police, according to its attributions, isinformed, an inquiry is initiated by written orders of the competent police authority in order to gather
evidence. The inquiry may be initiated by the Chief of Police ex officio; at the request of victims; or at thedemand of the judge or the public prosecutor. After the investigation is completed, a report is made by the
Chief of Police in charge, including information of all the evidence gathered.
The inquiry with its final report is submitted to a public prosecutor, who can demand other investigative
actions, accept the evidence in order to formally accuse the suspect or the indicted one, or suggest theclosure of the case. If the public prosecutor agrees that the evidence gathered is enough to prosecute thesuspect or the indicted, a formal accusation is issued and the penal action is started. If the formal accusationis received by the competent judge, then the indicted is prosecuted and adjudicated.
The Federal Constitution establishes some prerogatives to Public Authorities, determining special
attributions to prosecute and adjudicate them.

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According to Article 52, it is a private attribution of the Federal Senate to process and adjudicate thePresident and the Vice-President of the Republic, on responsibility crimes; and the State Ministers and theNavy, Army and Air Force commanders on the same crimes, connected to those. The Federal Senate is also
responsible for processing and adjudicating the Federal Supreme Court Ministers; the members of the
National Council of Justice and of the National Council of the Public Prosecution; the Chief of the Federal
Public Prosecution and the General Attorney of the Union, for responsibility crimes.
Congressmen and Senators can only be adjudicated by the Federal Supreme Court (Article 53). This
court has also the attribution to process and adjudicate the President and the Vice-President of the Republic;
the members of the National Congress; its own Ministers and the Chief of the Federal Public Prosecution,
for common penal infractions. The process and the adjudication of the State Ministers; the Navy, Army and
Air Force commanders; the members of the Superior Courts and of the Union Court of Accounts; and theChiefs of Diplomatic missions, with permanent nature, for common penal infractions and for responsibility
crimes, are also attributions of the Federal Supreme Court.
The Superior Court of Justice is responsible for processing and adjudicating the State and the Federal
District Governors, for common crimes; the Chief Judges of the State and of the Federal District Courts; themembers of the State and of the Federal District Courts of Accounts, the Federal Regional Courts, and theElectoral and Labor Regional Courts; the members of the Municipal Councils or Courts of Accounts and themembers of the Union Public Prosecution, who officiate on Courts, for common and responsibility crimes.
The Federal Regional Courts are responsible for the process and adjudication of Federal Judges andmembers of the Union Public Prosecution, excepting the attribution of the Electoral Justice.
The Federal Judges are responsible for the process and adjudication of all cases of interest to the Union,of an autarchic entity or to a federal public enterprise, as a defendant, a plaintiff or opponent, excluding thecases of bankruptcy; of labor accidents; and those attributed to the Electoral or Labor Courts. The same
responsibility works for political crimes and penal infractions which caused damage to the endowments,
services or interests of the Union or of its autarchic entities or public enterprises, excluding misdemeanours
and the responsibility of the Electoral and Labor Courts. In some cases specified by law, the process andadjudication of some crimes against the financial system and against the economic and financial order are
also the Federal Judges’ responsibility.
The Union Public Prosecution is composed of the Federal; the Labor; the Military; and the Federal
District and Territories Public Prosecution.
The Federal Public Prosecution performs its duties in cases in which the Federal Supreme Court, theSuperior Court of Justice, the Federal Regional Courts, the Federal Judges, and the Electoral Courts andJudges are responsible.
The other cases are processed and adjudicated by the Federal District and Territories and the State Judges.
The prosecution of these cases is performed by the Federal District and Territories Public Prosecution.

VII. BRAZIL’S PREVENTIVE MEASURES AGAINST CORRUPTION
The consequences of corruption on society are visible: the engagement of economic development and ofpolitical legitimacy, and the gradual weakening of democratic institutions, moral values, and the trust of thepeople in the public services, etc. Such factors contribute to the strengthening of organized crime and to theworsening of social problems.
Conscious of the necessity to improve constantly in the war against corruption, the government, hitting
the mark, is following the evolution of international society in treating the problem. For this reason, Brazil
has enlarged its relationship with other countries, aiming at integration and mutual co-operation.
It concerns the Office of the Controller General, through the Secretariat for Corruption Prevention andStrategic Information, to follow the implementation of the conventions and international commitment
assumed by Brazil which have the aim of preventing and fighting corruption.

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The main conventions signed and confirmed by Brazil are:(i) United Nations Convention against Corruption - UNCACThe United Nations Convention against Corruption was signed on 9 December 2003, in the city ofMérida, México, ratified on 15 June 2005, and promulgated by the Brazilian government by means of Decree
No. 5,687 on 31 January 2006. It had basically the aim of: promoting and fortifying the measures to preventand fight corruption more efficiently and effectively; promoting, facilitating and supporting international cooperation and technical assistance in preventing and fighting corruption, including the recovery of assets;promoting integrity; and the obligation of rendering accounts and the right conduct of matters and of public
assets. Legal mechanisms were established, for the first time, for the repatriation of assets and resources
sent to other countries, obtained by means of corrupt acts.
(ii) The Organization of the American States (OAS)
The Inter-American Convention against Corruption was signed on 29 March 1996, ratified on 10 July
2002, and promulgated by the Brazilian Government by means of Decree No. 4,410 on 7 October 2002. It has
the object of promoting and fortifying, in the signatory countries, the necessary mechanisms to help toprevent, detect and punish corruption, when proceeding in the public functions, as well as corrupt acts
specifically linked to such functions.
(iii) Organization for Economic Co-operation and Development - OECD
This convention was signed on 17 December 1997, ratified on 15 June 2000, and promulgated by theBrazilian government by means of Decree No. 3,678 on 30 November 2000. It works specifically on fighting
corruption of foreign public employees in international commercial transactions. It constitutes an instrumentthat defines the duties of Governments, companies, public accountants, lawyers and the civil society of thesignatory nations of the Treaty.

VIII. BRAZIL’S LEGAL REGIME FOR COMBATING CORRUPTION
A. The Federal Constitution
This important document, composed of 250 articles, with many paragraphs, sections and items; 55
amendments and six revision amendments, regulates the country’s entire legal system and guarantees thefree exercise of the executive, the judicial and the legislative branches, the public prosecution and theconstitutional powers of the units of the Federation.
The Federal Constitution shows an important concern for proper conduct by civil servants and theprobity of public affairs. That concern is reflected especially in Article 37, which sets forth the basic
principles of direct and indirect public administration in the branches of the government of the Union, thestates, the Federal District and the municipalities, which are: lawfulness, impersonality, morality, publicity
and the principle of efficiency.
The Constitution, in its Article 37, Item XXII, paragraph 4, stipulates that persons guilty of government
misconduct shall lose their political rights and public office. They will not be allowed to transfer personal
property and will be required to reimburse the Public Treasury in the manner and to the degree prescribedby law. They may also face criminal prosecution.
The Federal Constitution also holds public servants liable for damages caused to third parties when thosedamages were intentionally inflicted or caused by negligence.
It prohibits the use of any image, name or symbol that amounts to self promotion in advertising theactions, programmes, works, services and campaigns of public agencies.

B. Ordinary Laws applicable to Public Servants(i) Law No. 1,079, of 10 April 1950 and Decree-Law No. 201, of 27 February 1967
These legal mechanisms provide political-administrative penalties (loss of position and disqualificationfrom any government job or position for a period of up to five years) and criminal penalties (imprisonment
for up to 12 years) for public servants whose dishonest conduct is harmful to Government. The firstmechanism is applied to misconduct practiced by the President of the Republic, Ministers of State, Judges of48

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the Federal Supreme Court, the Attorney General of the Republic, and the Governors and Secretaries ofState. The second one is applied to misconduct and political-administrative violations practiced by mayors
and members of city/town councils.

(ii) Law No. 6.880, of 9 December 1980
This law, the Statute of the Military Servants, introduced the principles of military ethics, some of which
are worth quoting: to love truth and the responsibility as the basis of personal dignity; to perform one’s
duties with authority, efficiency and integrity; to serve and to enforce the laws, regulations, instructions andorders received from the competent authorities; to maintain faultless public and private conduct; and torefrain from using position or the rank in order to obtain personal advantages of any kind, or in order toguide personal or private business.
(iii) Law No. 8,027, of 12 April 1990
This law contains the rules of conduct for Civil Public Servants of the Union, autonomous government
entities and public foundations. It spells out the duties of every civil public servant, such as reporting
violations of the law, omissions and abuse of power; penalties varying from warning, suspension for up to 90
days and dismissal, applied in cases of administrative wrongdoing by public civil servants; and the civil,
administrative and criminal liability incurred for irregularities in the exercise of functions and duties.
(iv) Law No. 8,112, of 11 December 1990
This law sets up the juridical regime governing civil servants employed by the Union, the autonomous
governing agencies and the federal public foundations. It regulates the filling of government positions, job
stability, prohibitions, rights and duties of public servants, such as: to be loyal to the institutions one must serve;
to observe the rules and regulations; to behave in a way compatible way with administrative morality; etc.
(v) Law No. 8,137, of 27 December 1990
This law establishes crimes against the tax order and the economic order and against the consumer
relationship. The third article defines as crimes conduct against the tax order, such as: to request, require,demand or obtain, for oneself or for anyone else, direct or indirectly, even if from outside of the public
position or before being invested with it, but because of it, improper advantage; to accept the promise ofsuch advantage, in order to omit to register or to charge tax or social dues, or to charge such partially; and tosupport, directly or indirectly, a private interest before the financial administration, using the benefits of the
public position.
(vi) Law No. 8,429, of 3 June 1992
This law establishes penalties for acts of government impropriety committed either by public servants or
private individuals and harmful to public property. Those acts are divided into three categories:a)illicit enrichment whereby one gains illicit assets by virtue of one’s office, mandate, function,
employment or government business (Art. 9);b)acts harmful to the public treasury whereby one causes a loss of assets, diverts funds, embezzles,
squanders or destroys public property or the effects of public entities (Art. 10); andc)acts that violate the duties of probity, impartiality, lawfulness and loyalty to public institutions (Art. 12).

(vii) Law No. 8,730, of 10 November 1993
This Law stipulates that disclosure of assets and income is mandatory for positions, employment andservice in the executive, legislative and judicial branches.
(viii) Decree No. 1,171, of 22 June 1994
This Decree approved the Code of Professional Ethics for Civil Public Servants in the Executive Branchof the Federal Government. It provides for:a)the creation of an Ethics Commission in all offices of the direct and indirect Federal Government;b)

the rules of professional responsibility and legal ethics;c)the public servant’s main duties, such as integrity, advising one’s superior of any and every act or

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fact against the public interest; refraining from engaging in any function or exercising any power orauthority, whose purpose diverges from the public interest;d)prohibitions on public servants, such as prohibiting the use of one’s position to obtain any kind ofadvantage or receive any kind of financial assistance in exchange for the performance of one’s official
functions.

(ix) Law No. 9,613, of 4 March 1998
The Law of Money Laundering Offenses established provisions on the criminal offence of laundering orconcealment of assets, rights and values, and also implemented the rules to criminalize bribery of foreign
public servants.
(x) Law No. 9.784, of 29 January 1999
This Law stipulates the rules applied to the Disciplinary Administrative Process, providing some principles
which are implicit in the Federal Constitution, such as proportionality, decency and reasoned judgment.
(xi) Supplementary Law No. 101, of 4 May 2000 (The Accountability Fiscal Act)
This supplementary law introduced rules regarding public funds, which aimed to achieve accountability infiscal management.
(xii) Decree No. 4.081, of 11 January 2002
This Decree approved the Code of Ethical Conduct for Public Servants serving in the Office of the
President and in the Office of the Vice President of the Republic.

C. Crimes against the Public Administration
Brazil’s Criminal Code, Federal Law No. 2,848 of December 1940, in its Title XI, defines conduct which cancharacterize crimes practiced by public agents against the Public Administration. This title is, originally, divided
into three chapters: crimes practiced by public servants against the administration in general; crimes practiced
by private individuals against the administration in general; and crimes against the administration of justice.
In order to accomplish the adaption of Brazilian law to the commitments assumed in the Convention on
Combating Corruption of Foreign Public Officials in International Business Transactions, Law No. 10,467 of
11 June 2002, was promulgated. This Law added Chapter II-A to the Title XI of Brazil’s Criminal Code,which defines the crimes practiced by private individuals against a foreign public administration.
It is worth outlining some of these crimes, such as those noted below.
1. Crimes Practiced by Public Servants against the Administration in General(i) Embezzlement of Public Money (Article 312)
To embezzle money, assets or any movable personal property, private or public, or to divert it, for himself
or anyone else, by the public servant who has its possession as a result of his or her official position.
Punishment is reclusion from two to 12 years and fine.
The same punishment will be applied, if the public servant, although not possessing the money, the asset
or the property, subtracts it or assists, in any way, the subtraction, for his or anyone else’s benefits, taking
advantage of the benefits provided by the public position.

(ii) Insertion of False Data in Information Systems (Article 313-A)
For the authorized employee to insert or to facilitate the insertion of false data, or to alter or to exclude,
improperly, correct data from the Public Administration computer systems or databases, in order to obtain
improper advantages for his or her or anyone else’s benefit or to divert it, for him or herself or anyone else,or to cause damage. Punishment is reclusion from two to 12 years and fine.
(iii) Irregular use of Public Revenues or Budgets (Art. 315)
This crime is to forward public revenues or budgets to a different destination from the one established bylaw. Punishment is confinement from one to three years or fine.

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138TH INTERNATIONAL SENIOR SEMINARPARTICIPANTS’ PAPERS(iv) Bribery (Art. 316)
To demand, for him or herself or for anyone else, direct or indirectly, even from outside of the public
position or before being invested with it, but because of it, improper advantage. Punishment is reclusionfrom two to eight years and fine.
The same article defines the Exaction as being the conduct of demanding a tribute or social tax by the
public servant who knows or should know it is improper, or when proper, uses serious or shameful means ofcollecting, unauthorized by law. Punishment is reclusion from three to eight years and fine.
Also, the conduct of diverting, for his or her or anyone else’s benefit, the result of an improper collection
due to the public treasury. Punishment is reclusion from two to 12 years and fine.

(v) Passive Corruption (Art. 317)
To request or receive, for him or herself or for anyone else, direct or indirectly, even from outside of the
public position or before being invested with it, but because of it, improper advantage, or to accept thepromise of this advantage. Punishment is reclusion from one to eight years and fine.
The punishment is increased to a third if, as a result of the advantage or of its promise, the PublicServant postpones or doesn’t practice any “ex officio” act or practices it violating his or her functional duty.
This crime includes the practice, omission of practice or delay of practice of an “ex officio” act, violating afunctional duty, yielding to someone else’s request or influence. Punishment is confinement from threemonths to one year or fine.

(vi) Facilitation of Contraband or Embezzlement (Art. 318)
This crime refers to conduct which facilitates, with the violation of a functional duty, the practice ofsmuggling contraband or the commission of embezzlement. Punishment is reclusion from three to eight
years and fine.
2. Crimes Practiced by Private Individuals against the Administration in General(i) Influence Trafficking (Art. 332)
To request, require, demand or obtain, for him or herself or for anyone else, advantage or the promise ofthis advantage, in order to influence a public servant in the performance of his or her duties. Punishment is
reclusion from two to five years and fine.
The punishment is increased by a half, if the agent declares or insinuates that the advantage is also
assigned to the public servant.

(ii) Active Corruption (Art. 333)
This is to offer or promise improper advantage to a public servant, in order to induce him or her topractice, omit or postpone an “ex officio” act. Punishment is reclusion from one to eight years and fine.
The punishment is increased by a third if, as a result of the advantage or of its promise, the public servant
postpones or omits an “ex officio” act, or practices it, violating a functional duty.
3. Crimes Practiced by Private Individuals against a Foreign Public Administration(i) Active Corruption in an International Business Transaction (Art. 337-B)
To promise, offer or give, direct or indirectly, improper advantage to a foreign public servant, or tosomeone else, in order to induce him or her to practice, omit or postpone an “ex officio” act related to aforeign business transaction. Punishment is reclusion from one to eight years and fine.
The punishment is increased by a third if, as a result of the advantage or of its promise, the public servant
postpones or omits the “ex officio” act, or practices it, violating a functional duty.

(ii) Influence Trafficking in an International Business Transaction (Art. 337-C)
To request, require, demand or obtain, for him or herself or for anyone else, directly or indirectly, an

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advantage or the promise of this advantage, in order to influence in a foreign public servant an act, related to
an international business transaction, in the performance of his or her duties. Punishment is reclusion fromtwo to five years and fine.
The punishment is increased by a half if the agent declares or insinuates that the advantage is also
assigned to the foreign public servant.

(iii) The Concept of Foreign Public Servant (Art. 337-D)
For penal purposes, a foreign public servant is a person who, even if temporarily or if not on a remunerated
basis, holds a position, job or plays a public role in state entities or in diplomatic representations of a foreigncountry.
It is equivalent to a foreign public servant, the person who holds a position, job or plays a public role incompanies controlled, directly or indirectly, by the State of a foreign country, or in international publicorganizations.

IX. MONEY LAUNDERINGThe crime of money laundering is global in character and an estimated 500 billion to 1.5 trillion US
dollars is laundered annually. In this process, in order to legitimate all the capital earned through criminal
acts, the money runs through countries’ financial and economic systems, compromising the security of its
financial and economic order, stimulating the practice of serious crimes such as terrorism, drug trafficking,weapons trafficking, extortion, corruption, etc.
In order to try to prevent and punish those who use the money laundering process to conceal or disguisethe nature, origin, localization, disposition or movement of assets, rights or properties derived, directly or
indirectly, from criminal acts, many countries have promulgated specific laws with the intention of
incriminating money laundering-related conduct.
In Brazil, Law No. 9,613, of 4 March 1998 was promulgated with the intention of defining a new special
type of crime; to prevent the use of the national financial system as an instrument for laundering; to institutea national financial intelligence agency (Financial Activities Council Control – COAF); and to create
administrative, penal and procedural rules to prevent and punish related crimes.
The first article defines the main types of criminal conduct, which are complemented by the antecedentcrimes, and which can generate a product or illicit gain that could be an object of capital laundering.
In its Article 4, the law establishes that the judge may order “ex officio” or by request of the publicprosecution or the police authority, the restraint or seizure of assets, rights and properties belonging to thedefendant or registered under his or her name, if there is evidence that they are the object of the related crimes.
According to Article 7, in case of conviction, these assets are declared to be forfeited in favour of the Union
safeguarding, however, the victim or a third party with good faith rights. Another consequence of the convictionis the suspension of the right to hold offices of any nature in the public service, or positions as directors,
members of management or administration councils of any of the legal persons referred to in Article 9 of theLaw, for a period corresponding to double the term of imprisonment stipulated by the judicial sentence.
It is worth pointing out that owing to the fact that there is material concurrence between the prior crime
and the crime of money laundering, the penalties applied to each of the crimes must be added up. Therefore,
in the case of conviction for both the prior and the money laundering crime, the sentence provided for thelatter shall be applied cumulatively with the sentence provided for in the Criminal Code for the former.
The Law also establishes that if there is an international treaty or convention and a request from acompetent foreign authority, the judge will order the restraint or seizure of assets, rights and properties
belonging to the defendant or registered under his or her name, if there is evidence that they are the objectof the related crimes, committed abroad. Even in the absence of international treaties or conventions, thisorder can be declared if the requesting government promises Brazil reciprocity.

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The creation of the Financial Activities Council Control, a national financial intelligence agency, was amajor step in combating corruption. This Council has the purpose of instructing and applying administrative
punishments; to receive, examine and identify the occurrence of suspected illicit activities defined in thisLaw; and to co-ordinate and propose co-operation and information exchanging mechanisms, which enable
fast and efficient actions on combating the concealment or disguising of assets, rights and properties.
The Council is authorized to demand banking and financial cadastral information from Public Administration
offices, regarding individuals involved in suspicious activities. This information will provide material analysis
regarding the growth of assets of individuals. According to the results, this information is sent to the
responsible organ, in order to start the legal administrative or criminal measures.
In the scope of the Federal Executive, if the individual investigated is a public servant, the Office of theController General initiates a confidential administrative inquiry which intends to verify whether the growth of
the assets is compatible with the declared income. If proved that it is not compatible, than the Office initiates a
Disciplinary Administrative Process, which can result in administrative punishments, such as dismissal.
The information gathered by the Council may help identify the author and co-author of the related
crimes; the localization of the laundered assets and properties; their condemnation and the consequentconfiscation of the profits, instruments and proceeds of the crimes.
The financial intelligence system that feeds the Council relies on the collaboration of the Federal
Prosecutor’s Office; the Office of the Controller General (CGU); the Federal Police Department; the Brazilian
Central Bank (BACEN); the Securities and Exchange Commission (CVM); and the Superintendence ofPrivate Insurance (SUSEP) and the Secretariat of Complementary Social Security (INSS) of the Social
Security Ministry, which regulate and supervise the sectors under their responsibility.
This co-operation travels back and forth, since the exchange of data can provide the organs who feed thesystem with the information necessary to trace, block and retrieve assets concealed or disguised; to identify
and block suspicious financial transactions; to initiate criminal investigation and, if the case, to propose theinstitution of prosecution.

X. OPERATION TENTACLESThis investigation was initiated in 2004, with the initiation of an inquiry to verify criminal news
originating in a State Treasury Agency, according to which some treasury auditors were committing crimes
against the tax order, defined in Article 3, II, of Law No. 8,137 of 27 December 1990.
During the investigation, which involved over 80 suspects, among whom were tax auditors, retired tax
auditors, accountants, lawyers, entrepreneurs, and some other public servants from the State Treasury
Agency, telephone interception was authorized by a competent judge.
By this measure, the scheme elaborated by the leading characters of the group could be discovered, lighting
up the functions of each member. As the investigation improved, it was doubtless that the suspected groupformed a criminal organization, with the purpose of growing rich by the damage caused to the State Treasury.
The investigation defined many kinds of illicit conduct practiced by the participants of the criminalorganization. The two leading characters, tax auditors, framed tax assessments against companies, in orderto “negotiate” the value of the tax or the annulment of the tax assessments. The accountants involved were
responsible for persuading the entrepreneurs to accept the proposal of bribery, and for intervening in thetransaction.
The auditors prepared formal tax defences, based on tax assessments they had filed themselves, whichwere filed against the State Treasury by the lawyers for the criminal group. As a result, the companies whichgave the bribes were able to reduce or even cancel their public debts. One of the senior lawyers was thedaughter of one of the leading auditors involved.
All the money received as a bribe was divided among the members of the criminal organization and

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carefully laundered. Some of the members deposited the illicit money in relatives’ current banking accounts;
others acquired vehicles, companies and other properties, in all cases representing amounts incompatible
with their incomes. The telephone interception showed that one of the auditors acquired US$4,000 in cash,
proving his attempt to conceal illicit money.
The attempt to avoid the production of evidence was constant during the investigation, as the members
used deceits such as constantly changing their telephone lines and e-mail addresses; avoiding the use of real
names or details of operations on the telephone; and even hiring private investigators to find out aboutpublic official investigations occasionally initiated to uncover their activities.
After gathering all the primary evidence, the chief of police in charge of the investigation requested thecompetent judge for temporary and preventive custody; for search and seizure to be carried out in homes
and offices; for the breach of fiscal and banking secrecy; and for the freezing of assets of some of the leading
members of the criminal organization.
On 28 April 2005, Operation Tentacles was executed, resulting in the arrest of 13 people, who were lateraccused in public criminal prosecutions of many crimes, among which money laundering; criminal
association; influence trafficking; active corruption; crimes against the tax order; and others.
On 23 March 2006, after the due disciplinary administrative process, some of the leading members of theorganization were formally dismissed from the State Treasury Agency.
The estimated damage caused to the State Treasury was around US$25,000,000 (twenty five million
dollars) in deviated money.

A. Charts

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XI. BRAZILIAN STATISTICS
A. Federal Police Department Statistics 2005
Exchange of Criminal Information in 2005

Remarks• Exchange of criminal information with the 184 member countries of the International Criminal Police Organization(Interpol), units of the Federal Police Department (DPF), Ministry of Justice and bodies of justice.
• The exchanges of information comprise solicitations, diffusions, memoranda, administrative information, etc.

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Extraditions and Transfer of Prisoners

1. The Brazilian State requests the delivery of criminals to the foreign State.
2. The foreign State requests the delivery of criminals to Brazil.
3. By force of the treaty, the convicted criminal serves the sentence in his or her home country.

Police Inquiries
Financial Crimes and Money Laundering

B. Financial Activities Council Control (COAF) Statistics – 2005
Communications Received by the COAF

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Communications of Suspect Operations on the Financial System by Range of Values of theCommunications (2005)

Time between the Reception of the Last Communication and the Making of the Report(Ex Officio and Others 2005)

NOTES:
1. “Others” includes fax and memoranda.
2. SISPED – Sistema Eletrônico de Intercâmbio de Informações - Electronic System for the Exchange of Information –developed to bring more agility and security to the exchange of information, substituting the memoranda throughwhich the COAF receives information from competent authorities and shares its reports.

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Requests Received by the COAF

Requests Made by the COAF

C. Department of Asset Recovery and International Legal Cooperation (DRCI) Statistics – 2005
Statistics on Combating the Money Laundering Offence
Investigated and Accused58138TH INTERNATIONAL SENIOR SEMINARPARTICIPANTS’ PAPERS

Convicted

Inquiries

Penal Actions

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D. Securities and Exchange Commission (CVM) Statistics – 2005
Market Surveillance 2005

Inspection Numbers

SAP – Sanctionary Administrative Processes

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Proceeding Statistics 2005

Superintendence of On-Site Inspections – SFI
Inspections Made and Administrative Inquiries(*) Prediction

Superintendence of Accounting and Auditing Ruling – SNC
Auditors Registered

Follow-up of the Independent Auditors Performance (since 1978)

Auditors Involved in the External Quality Review Program 2005

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XII. CONCLUSION
Corruption represents a menace to society’s steadiness and security, since it weakens the institutions
and the values of democracy, ethics and justice. Like a cancer, it spreads throughout many sectors in society,compromising its development. If not treated properly, this cancer might control the whole state body,causing immeasurable damage and loss.
Brazilian society is opening its eyes to the problem and seeing the link between corruption and criminalorganizations and the enormous drain on resources sorely needed for education, health, security andinfrastructure, caused by it.
A heated debate on the issue has long invaded our daily lives. Corruption has become a theme of recent
jokes, songs, movies, and advertisement campaigns and many different layers of society are aware of its costs
to the country’s political and economic development. This participation, encouraged by the government, plays
a vital watchdog role, since the demand and urge for transparency; administrative, legal and social reforms;
and rectitude in the State actions, increase.
The Government has invested in this battle and has taken huge and serious steps in developing
preventive and repressive measures against corruption. The co-operation of all law enforcement
organizations, civil society, non-governmental organizations, and of course, all nations, uniting intention andaction against this cancer, can only be successful.

XIII. REMARKSThe statistics and some of the information used in this essay were provided by officials and directors of
the Office of the Controller General (CGU).

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