Billionaire growth in Trump's fortune reignites debate about conflict of interest; Compare US and Brazilian rules

Conflict of interest? Trump's companies have billion-dollar revenues by 2025
The growth in United States President Donald Trump's fortune during his second term has reignited the debate about public ethics and conflicts of interest involving heads of state. Just last year, after returning to the White House, Trump added more than US$2 billion (around R$10.3 billion) to his assets.
According to the financial statement released by the president himself, the expansion of wealth was driven by family businesses, especially in the areas of cryptocurrencies and brand licensing.
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The point is that part of this growth occurred while the Trump administration was promoting regulatory changes favorable to the digital asset market.
According to a report in "The New York Times", the president and his family expanded business in the sector at the same time that the government relaxed rules for the industry, which would constitute possible conflicts of interest.
Unlike previous presidents, Trump chose not to transfer his assets to a blind trust ("blind fund", in English), an option traditionally used to reduce the perception of problems between private interests and public decisions.
A blind trust is a mechanism in which a person transfers the administration of their assets and investments to an independent manager. During this period, the owner does not know how the assets are managed nor participates in decisions about them.
Critics interviewed by the newspaper, including representatives of the Project on Government Oversight and Transparency International in the USA, classified the situation as an unprecedented conflict of interest.
The White House rejects the criticism. In a statement to the Financial Times, spokeswoman Anna Kelly said Trump "implemented policies that made all Americans richer and more prosperous." According to her, private businesses are managed by the president's children.
Use of influence
Although the increase in the assets of a head of state, in itself, does not constitute an irregularity, it can raise questions when there is evidence that public decisions have benefited private interests.
For Michel Sancovski, partner in the Anti-Corruption & Compliance area at Tauil & Checker Advogados associated with Mayer Brown, "the central aspect is whether this increase resulted from the exercise of the position or situations that could compromise the impartiality of public decisions."
According to him, the analysis must also take into account whether government decisions favored or may have favored the enrichment of the ruler himself.
The debate about Trump's business also reached the US Congress. Entities that follow the topic defend the inclusion of an amendment in the Clarity Act, a project that regulates the digital assets market in the country.
The proposal would prohibit holders of elected positions and their closest family members from profiting from certain businesses linked to the sector during their term of office. The text has already been approved by the House of Representatives and awaits analysis by the Senate.
What the American law says
Project for a new US$250 dollar bill with the face of Donald Trump
Department of Engraving and Printing via Washington Post
Under American law, the president and vice president are exempt from the main federal law on conflicts of interest in the Executive Branch (18 U.S.C. § 208). In practice, this means that the president can maintain companies, investments and other assets during his term of office.
In general, the rule prevents authorities from making official decisions that could benefit their own financial interests. Therefore, it is considered one of the main instruments for preventing conflicts of interest and combating corruption in the federal government.
In return, the legislation requires the annual disclosure, in public reports, of detailed information about assets, income, debts and corporate interests.
In addition, the American Constitution determines that the president cannot receive gifts, payments or benefits from foreign governments without authorization from Congress. It also prohibits him from receiving additional compensation from the federal or state governments in addition to his salary.
As the legislation does not require the president to sell companies or transfer his assets to an independent fund, many occupants of the White House adopt these measures voluntarily to reduce the perception of conflicts of interest.
The Office of Government Ethics (OGE) monitors compliance with ethics rules in the federal government, but does not have the power to force the president to sell companies, investments or other assets.
The what Brazilian law says
In Brazil, there is no law aimed exclusively at the President of the Republic on situations of this type. However, the Conflict of Interest Law (Law No. 12,813/2013) also applies to the head of the federal Executive due to his status as a public agent.
The rule determines that the president must avoid situations in which private interests may interfere in the exercise of public functions and protect privileged information.
Under Brazilian law, a conflict of interest is any situation in which a private interest may improperly influence the performance of the public agent, even if there is no harm to public coffers or financial advantage.
According to Sancovski, Brazilian law adopts a preventive logic. "The law seeks to prevent private interests from interfering in the actions of public agents even before demonstrating an effective economic benefit or harm to public power", it states.
For this reason, during his term of office, the president cannot:
Use or disclose privileged information for his own benefit or that of third parties;
Perform private activities incompatible with his position;
Provide services or do business with people or companies interested in government decisions;
Make decisions that benefit companies of which he, the spouse or relatives up to the third degree participate;
Receive gifts from people or companies interested in decisions under their responsibility beyond the limits set out in regulations.
The prohibition on using privileged information remains valid even after the end of the mandate. On the other hand, the legislation also does not prevent the president from being a partner or shareholder in companies.
"What the legislation prohibits is that he acts in the management or administration of these businesses while he is in office or uses his public role to favor them", explains Sancovski.
According to him, the president also cannot participate in government decisions in which his private interests may influence his actions.
Inspection and transparency
Inspection of the president and other high-ranking authorities of the federal government is carried out by the Public Ethics Commission (CEP), linked to the Presidency of the Republic.
Obligations include the annual delivery of information on assets, shares in companies and economic activities, in addition to the daily publication of the official agenda of commitments.
The Commission can also be consulted to assess whether a given situation constitutes a conflict of interest.
If there is a violation of the law, the public agent may be held liable for administrative improbity. Punishments include loss of office, suspension of political rights, fine, compensation to the public authorities, when there is damage, and prohibition from contracting with the government or receiving tax benefits for three years.
The legislation makes it clear that a conflict of interests can exist even without harm to public coffers or financial gain for the public agent.
In Brazil, candidates for the Presidency of the Republic must declare their assets to the Electoral Court. After being elected, the President of the Republic must annually submit updated information to the Public Ethics Commission.

Source: G1