Introduction

Matrix organization

Mergers by absorption

Risks related to the expansion of the scope of criminal liability of legal entities

Validity conditions

Proof of delegation

Exemption from individual liability of delegator

Attribution of offense to legal entity

Delegations of authority

Criminal risk management within business organizations

Complicity in crimes against humanity

Breaches of secrecy

Personal data breaches

Theft

Extortion

Blackmail

Fraud

Misappropriation

Receiving/concealment of unlawfully obtained property (recel)

Attacks on automated data processing systems

Money laundering

Misappropriation by public official (concussion)

Corruption and influence peddling

Unlawful acquisition of an interest

Favoritism

Forgery and use of forgeries

Violation of Criminal Code

Offenses under the Monetary and Financial Code

Offenses under the Commercial Code

Environmental Code violations

Offenses arising from other codes

Types of offenses

Offenses under the Criminal Code, the Commercial Code, or the Environmental Code, Criminal procedure

White Collar Crime (en cours)

Legal entities also incur the penalty under Article 131-39-2 of the Criminal Code, introduced by the Sapin II Law , which imposes the obligation to submit, for a maximum duration of five years, to a compliance program, the monitoring and implementation of which are entrusted to the French Anti-Corruption Agency (AFA). This penalty serves as a means to compel legal entities that have committed acts …

Compliance penalties

Legal entities also incur the penalty under Article 131-39-2 of the Criminal Code, introduced by the Sapin II Law , which imposes the obligation to submit, for a maximum duration of five years, to a compliance program, the monitoring and implementation of which are entrusted to the French Anti-Corruption Agency (AFA). This penalty serves as a means to compel legal entities that have committed acts of corruption to put in place internal mechanisms that prevent the recurrence of such acts.

The compliance penalty is intended to apply to legal entities under public or private law, regardless of their size, legal form, sector of activity, or nationality. Its scope is not limited to the framework of Article 17 of the Sapin II Law, meaning it is not restricted to companies with at least five hundred employees, or belonging to a group of companies whose parent company is headquartered in France and whose workforce includes at least five hundred employees, and whose turnover or consolidated turnover exceeds EUR 100 million. Unlike the compliance obligation prescribed by that article, it constitutes a penalty stricto sensu, pronounced by the criminal judge and punishing the commission of the offense of corruption.

The acts constituting active corruption of a French public official committed by individuals under Article 433-1 of the Criminal Code, active corruption of a foreign public official or an official of an international public organization under Article 435-3, and active and passive corruption of private individuals not exercising a public function under Articles 445-1 and 445-2 of the Criminal Code  are targeted.

While Article 131-39-2 of the Criminal Code caps the duration of the compliance order penalty at five years, a circular dated 31 January 2018  specifies that it is possible to terminate it early, by a reasoned decision of the judge responsible for the enforcement of sentences (juge d’application des peines), on the motion of the public prosecutor, when three cumulative conditions are met: the penalty has been enforced for at least one year, the reports submitted to the public prosecutor indicate that the convicted legal entity has implemented appropriate measures and procedures to prevent and detect acts of corruption, and finally, no further monitoring appears necessary.

Furthermore, the non-execution or improper execution of this compliance order penalty, which is assessed, when pronounced against a company falling within the scope of Article 17 of the Sapin II Law, in light of the measures and procedures already implemented pursuant to this law, constitutes a new offense, provided for in Article 434-43-1 of the Criminal Code, which penalizes both the convicted legal entity and its organs or representatives who are natural persons. According to this article, natural persons may face up to two years of imprisonment and a fine of EUR 50,000. Legal entities also face this fine, which may be increased to the amount of the fine incurred for the offense for which they were convicted and which led to the compliance order penalty, as well as all other penalties imposed. Both natural persons and legal entities are subject to the additional penalty of posting or dissemination of the decision.

Law No 2016-1691 of 9 December 2016 on transparency, the fight against corruption, and the modernization of economic life, known as the Sapin 2 Law, Art. 18.

Criminal Code, Art. 433-26, 435-15, and 445-4.

Circular from the Directorate of Criminal Affairs and Pardons regarding the presentation and implementation of the criminal provisions provided by Law No 2016-1691 of 9 December 2016 on transparency, the fight against corruption, and the modernization of economic life CRIM/2018-01/G3 of 31 January 2018.

White Collar Crime (en cours)

124. Compliance penalties

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Les notions juridiques connexes

124. Compliance penalties

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise