BRAZIL Trends and Developments Contributed by: Flávia Leardini, Paula Moreira Indalecio, Rogério Taffarello and Philippe Alves do Nascimento, Mattos Filho
Internationally, Brazil’s regulatory approach is being compared to those of the UK and the European Union, with ongoing dialogue about harmonising standards and sharing intelligence on cross-border betting fraud. Operators are advised to invest in advanced analytics, staff training, and third-party audits to meet evolving expectations. Capital Markets Integrity and Major Cases The integrity of Brazil’s capital markets remains a top enforcement priority. The ongoing investigation into the Americanas accounting scandal, which began in 2023, appears to have expanded to incorporate additional parties, including financial institutions, audi - tors, and executives. The Federal Police and CVM are working together to analyse complex financial trans - actions, and the case has prompted calls for stricter regulation of accounting practices, auditor independ - ence, and the liability of board members. The Ameri- canas case has also led to a broader review of disclo - sure obligations and the adequacy of internal controls within listed companies. The CVM’s efforts to rebuild its supervisory capacity have led to more referrals to prosecutors and greater use of data analytics to detect irregularities. In August 2024, there were only 89 police inquiries nation - wide targeting potential securities crimes, a number expected to rise as the CVM and Public Prosecutor’s Office increase their co-operation. Legislative propos - als are under consideration to create new offences related to accounting fraud, misleading investors, and to strengthen whistle-blower protections. The CVM has also launched a public consultation on the mod - ernisation of its enforcement toolkit, including the use of deferred prosecution agreements and the expan - sion of administrative sanctions. Companies listed on the stock exchange are under pressure to enhance their internal controls, ensure accurate disclosures, and respond promptly to regu - latory inquiries. The Americanas case has become a benchmark for the market, highlighting the importance of robust governance, transparent reporting, and a proactive approach to risk management. Market par - ticipants are increasingly expected to conduct regular internal audits, review their whistle-blower policies,
and ensure that their boards are equipped to oversee complex financial operations. Environmental Crime, ESG, and Illegal Mining Environmental enforcement has intensified, particu - larly in the extractive industries and sectors linked to Brazil’s global climate commitments. In 2025, authori - ties launched important investigations into allegations of corruption and other fraud within the National Min - ing Agency ( Agência Nacional de Mineração , ANM), resulting in the arrest of senior officials and the seizure of assets including mining equipment, vehicles, and cash. These probes have exposed systemic weak - nesses in licensing, monitoring, and enforcement, prompting calls for the digitalisation of environmen - tal permits and the integration of satellite monitoring systems. The focus has expanded to include not only tradi - tional environmental crimes (such as illegal defor - estation, pollution, and illegal mining) but also green - washing and fraudulent carbon credit schemes. The Greenwashing Operation ( Operação Greenwashing ), launched in June 2023, led to the arrest of individu - als involved in the irregular trading of carbon credits, with over BRL919 million (roughly USD170 million) seized. The Receita Federal and Federal Police have also launched joint operations to combat tax evasion and money laundering in the fuel and carbon sectors. Companies operating in these sectors face height - ened exposure relating to licensing, beneficial own - ership, carbon-related claims, and supply chain transparency. Robust ESG controls, verifiable carbon documentation, and third-party risk management are now baseline expectations. The expansion of the car - bon credit market, coupled with increased detection of fraudulent credits, has led to a surge in investiga - tions targeting greenwashing and related offences. Extractive industries, in particular, are under pressure to enhance transparency, ensure the integrity of their supply chains, and engage constructively with regula - tors and local communities. The adoption of interna - tional ESG standards, such as those set by the Task Force on Climate-related Financial Disclosures, is becoming a market expectation, and failure to com - ply can result in exclusion from financing and public procurement.
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