Legislation that aims to curb corruption, protect whistleblowers and introduce a new French deferred prosecution agreement (DPA), has been approved by French legislators.
The Sapin II bill creates a duty for presidents, managing directors, managers and economic board members to actively manage corruption risks for companies with a €100m+ turnover and at least 500 employees (or companies in a group meeting this requirement).
A national agency, charged with identifying and averting corruption, will be created; corruptly influencing a foreign public official will become an offence; and the ability of French authorities to punish bribery committed abroad will be widened.
A new sanction of up to two years in prison and a fine of up to €50,000 for individuals is proposed, with stiffer fines for legal entities convicted of corruption envisaged.
Companies suspected of corruption would be allowed to enter into a DPA and pay a fine, instead of being prosecuted.
Simmons & Simmons partner, Etienne Kowalski, said: “DPAs are reserved for corporate defendants and will not be available for individuals. Therefore, if a company enters into a DPA, criminal sanctions could still be imposed upon individuals, such as the senior executives of the company.”