Partners of MGI Worldwide with CPAAI firms in Brazil gather to discuss challenges of adapting to data protection laws
Over the last year, member firms in Brazil have shown a growing interest in working together to stimulate growth within their own firms, and strengthen the MGI Worldwide with CPAAI brand within the country. In this last year, despite restrictions, our Brazilian firms located in the cities of Belo Horizonte, Brasilia, Curitiba, Manaus, Porto Alegre and São Paulo have made concerted efforts to get together virtually to discuss ways in which they can support one another and collaborate.
General Law on Data Protection
An example of this has been the recent series of virtual meetings Partners have held, with the objective of analysing the challenges of the General Law on Data Protection. Inspired by the European General Data Protection Regulation (GDPR) law, the legislation was adopted in Brazilian territory with an aim to implement new guidelines for the protection of personal data that is, in many cases, captured directly by service providers and/or product providers without user authorisation.
Risks of not adapting to GDPR
• Fines can reach up to 2% of annual sales or, at most, R$50 million per infraction.
• Bad business practise - A company that does not comply with the law will undoubtedly encounter problems with trading partners and customers. Final consumers are increasingly discerning, distrusting corporations that do not have good internal practises. The impact with international contacts will be even more severe as many countries are already up to date with the data protection plan.
• Financial risks - As noted above, the most serious penalty for companies is the fine imposed for violating the law. But, even bearing the penalty, not complying with the GDPR can bring other financial risks, as it can negatively impact all sectors.
• Governance - If a company does not adapt its practises to what is required by law, its structure is shaken and can end up resulting in serious governance problems. An organisation that does comply can end up ruining its reputation and even risk bankruptcy.
The partners' initiative in Brazil aims to map the risks to which each office is exposed, identify actions and controls to mitigate such risks, and at the end, prepare a manual with good practises to be shared among all offices in Brazil and Latin America, promoting, integrating, and adding value to our network.
Karin Monchak, Partner at MGI Assurance Auditores Independentes in Curitiba and representative for MGI Worldwide with CPAAI firms in Brazil comments:
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For more information contact any of our Brazil-based members or email Andrea Pallas, MGI Latin America Regional Director at [email protected].
Audiger Auditores & Consultores S/S, Brasilia
COKINOS Auditores e Consultores, São Paulo
Quantrex, São Paulo
MGI Assurance Auditores Independentes S.S., Curitiba
MGI Controle Contabilidade, Manaus
MGI SengerWagner Auditores Independentes, São Paulo
Orplan Auditores Independentes, Belo Horizonte
MGI Worldwide with CPAAI is a top 20 ranked global accounting network and association with almost 10,000 professionals, accountants and tax experts in some 460 locations in almost 100 countries around the world.