Leniency agreement is signed between the legal entity that committed an unlawful act against the public administration, national or foreign, but that is willing to assist in investigations that lead to the capture of others involved in the crime, in exchange for benefits for their sentence.
The literal meaning of the leniency agreement is to guarantee the "softening" of the punishment to the offender who participated in an activity unlawful, but which in turn starts to collaborate with the investigations with the intention of denouncing other offenders involved in the crime.
The leniency agreement definitions are set out in Law No. 12,846, of August 1, 2013, known as Anti-Corruption Law.
The leniency program is also part of the Brazilian Competition Defense System, as described in Law No. 12,529, of November 30, 2011.
In addition to the need to present evidence and information that is relevant to the investigations and capture of other offenders, companies that commit to the leniency agreement must implement internal mechanisms that improve the integrity of their organization (known as the
compliance), preventing the occurrence of new criminal acts that lack ethics and morals in public administration."IV - the legal entity undertakes to implement or improve the internal integrity mechanisms, audit, encouragement of whistleblowing and the effective application of a code of ethics and conduct" (Article 16. Law No. 12846/2013)
The body responsible for entering into leniency agreements within the scope of the Federal Executive Branch is the Federal Comptroller General (CGU). However, this benefit can also be granted by the Administrative Council for Economic Defense (CADE), as established by Law No. 12,529/11.
The incorporation of the leniency agreement program into the Brazilian legal system is the result of the observation of experiences lived in the United States, mainly from the beginning of the 1990s.
Learn more about the meaning of Leniency.
Leniency Agreement Benefits
As a "reward" for helping during investigations, in an attempt to redeem themselves for participating in the wrongful act, the violator under leniency agreement may have total exemption from the fine, or its reduction by up to 2/3 (two thirds) of the value total.
Other possible benefits may include: exemption from the ban on receiving Federal Government incentives, subsidies and loans; exemption from mandatory publication to punishment and exemption or attenuation of the prohibition of contracting with the Public Administration.
However, the leniency agreement does not exempt the company from repairing all damages caused as a result of its actions.
Leniency Agreement and Awarded Termination
Both consist of agreements signed between offenders and the respective bodies responsible for criminal investigation processes.
THE main difference between the leniency agreement and the winning declaration it is in the concession of both practices: the leniency agreement is signed by administrative bodies of the Executive Branch; the awarded declaration, in turn, is celebrated by the Judiciary, in partnership with the Public Ministry.
In both cases, the accused must commit to complying with the investigations of the criminal act in which he participated.
Find out more about the meaning of Winning Statement.