Overview
The Wall Street Journal’s Risk & Compliance blog quoted Lucinda Low in an April 16 article titled “Brazil Scandal Sends Multinationals Running to Attorneys.” The article discusses the growing bribery investigation known as “Operation Carwash” and how it is prompting multinationals with operations in Brazil to seek legal advice.
Ms. Low explains that if a company discovers it has business with a firm under investigation in Brazil, the next step is to learn the depth of the relationship. If the international firm is simply using an embattled Brazilian firm as a local vendor for “off the shelf” products, the risk is lower although the relationship may still require some auditing. But a deeper relationship, for example a joint venture, would require tougher questions and an assessment of whether it’s worth maintaining, considering the risks.
“Boards are asking these questions,” she says.
The full article can be read at The Wall Street Journal (subscription required).
