The bill, which was first proposed in 2011, increases the minimum prison sentence for corruption from two to four years.
The maximum sentence stays the same at 12 years.
It will apply to government officials who take advantage of their job to demand favours and to those who embezzle public funds.
It will also apply to individuals or institutions who offer bribes to officials.
The bill will now be voted by the House of Representatives. If approved, it will go to President Dilma Rousseff for signing into law.
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