GlobalAutoTV
Click to watch Dr. Juergen Weber -
Click to watch Dr. Juergen Weber -
euro resources


Need an office in Europe or Eastern Europe? Office suites, meeting rooms, virtual offices, network access




free downloads
EUROPE: "Planning your international transfer for Germany"

EUROPE: "Planning your international transfer for Germany". 17-page guide by KPMG International.

proceed to download
eJournals





back to index backEUROtalk June,  2017


France to Corrupt Multinationals: You Can Run, But You Can’t Hide

France recently passed a sweeping anti-corporate-corruption law that could have a significant impact on multinational companies worldwide. The new law hasn’t garnered much attention outside France and corporations inside and outside the country have been sluggish in complying.

Noncompliance could prove a costly mistake.

Dubbed Sapin II, the new law could ensnare many foreign firms. Like similar laws in the U.S. and UK, the law has an exceptionally broad reach. For example, French prosecutors can still target corruption under the law whether or not the acts are considered corruption abroad, as long as the perpetrator is a French national working for a foreign company, a foreign national established in France, or any large company that conducts at least some of its activities in France. The law also requires mid-sized and larger companies to develop a compliance program whether they are French firms or French subsidiaries of foreign companies.

France has strong ties to many developing nations where corruption is still a challenge, and companies many need to consider how they do business in these countries.

From Deductible to Illegal

Before Sapin II went into effect last December, French legislation forbidding a French businessperson from bribing a foreign official was considered ineffective. In fact, until the late 1990s, such bribes could be deducted as business expenses and only became illegal in 2000. The penalties were initially low and were increased in 2013 to 10 years in prison and a 1 million euro fine. However, beyond a handful of individuals convicted for minor infringements, France hasn’t yet convicted a single company for bribery of foreign officials. Meanwhile, since 2010, as the result of prosecutions under U.S. law, French companies have paid $1.6 billion to resolve anti-corruption actions.

Companies that discover illegal behavior in their ranks and are willing to “come clean” to prosecutors may be offered a settlement in lieu of criminal proceedings. The settlement may include a fine of up to 30 percent of global revenue, supervision of the firm’s compliance program, or compensation for victims.

The law is unique among national anti-corruption laws in that companies may also be fined (up to 1 million euros) if they fail to develop a robust compliance program. Companies with more than 500 employees and 100 million euros in annual revenue must develop a plan with the following eight elements: A code of conduct, a whistleblowing mechanism, risk assessments, due diligence procedures for third parties such as clients and suppliers, internal or external accounting controls, targeted trainings, a disciplinary framework and a control and assessment framework.

To read entire article, please click here.

Source: Brink News - GAI





previous page

go top
search our site


Loading

EUROtalk

Other articles from the same issue (June,  2017).

New EU car emissions tests slammed as 'paper tiger'
play read on

The digitalisation of the UK automotive industry
play read on

Europe: Automobile Industry Pocket Guide 2017 - 2018
play read on

Autos: Europe Demand Falls on Selling Day Shift; Underlying Demand Stable (May 2017)
play read on

Automobile industry reacts to EU mobility package
play read on

Europe (Germany) is a Major Global Factor in AutoTech
play read on

Turkey: Automotive Industry Monthly Report (1st 4 months of 2017)
play read on

France to Corrupt Multinationals: You Can Run, But You Can’t Hide
play read on

The Deloitte Global Chief Procurement Officer Survey 2017
play read on

EY's Attractiveness Survey report (Europe: May 2017)
play read on

The Future is Now at the Port of Rotterdam: 3-D Printing Case Study
play read on

Central and Eastern Europe trapped in low wage spiral
play read on

Why should European industry embrace the rise of IoT?
play read on

UK, European suppliers consider cutting ties due to Brexit
play read on

Boardrooom Brexit
play read on

Brexit opens Pandora’s box of legal issues for international companies
play read on

Brexit: the supply chain perspective
play read on

Key to Germany's Continued Manufacturing Success is Low Profile, Mid-Sized "Hidden Champions"
play read on

Netherlands to redefine scope of dividend withholding tax act
play read on

Economic Snapshot for Central & Eastern Europe
play read on

Poland: A new amount of relief for R&D works from 1 January 2017
play read on

German Tax Monthly June 2017
play read on

The largest European research initiative in the field of Industry 4.0
play read on

Top 10 EMS Providers in Europe – 2016
play read on

Consumer confidence improves
play read on

Overview of European supply chain events 2017
play read on

What the world can learn from Switzerland
play read on

Doing business in Russia (2017 Guide)
play read on

Europe's manufacturing growth hits 6-year high
play read on

UK economic outlook update
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120