The French Anti-Corruption Act (Sapin II): A Perspective After 7 Years in Force
December 12, 2023
The French anti-corruption act called Sapin II, number #1691/2016, is celebrating its anniversary this December 9th, after seven years of existence.
To understand the historical context, Sapin II has the number 2 because it was sanctioned 23 years after Sapin I, dated January 29, 1993. Sapin II has 169 articles and aims to prevent corruption and influence peddling, as well as guarantee transparency in economic life.
Sapin II must always be implemented with three focuses: (i) prevention, (ii) detection, and (iii) remediation. Furthermore, it establishes eight pillars, in its article 17, which must be observed in order for its principles not to be violated:
THE EIGHT PILLARS OF THE SAPIN II ACT
1. Code of Conduct
2. Internal Alert System (a.k.a. Speak Up Policy + Channel for Reporting Misconduct)
3. Risk Cartography (a.k.a. Risk Mapping)
4. Third Party Risk Assessment (a.k.a. Due Diligences)
5. Accounting Control
6. Staff and Exposed Employees Training
7. Disciplinary regime
8. Internal Control and Assessment
Another major innovation of Sapin II was the creation of French Anti-Corruption Agency (AFA). To ensure the implementation of the pillars above, the agency can adopt the penalties provided for in Sapin II, which differ depending on whether the target is a legal entity or an individual:
VIOLATION DESCRIPTION
LEGAL ENTITY
INDIVIDUAL
Corruption or influence peddling
Fine of up to 30% of the company's revenue,
Administrative fine of up to €1 million, Injunction
Agreement with Obligation to Submit (CJIP) to a
Compliance Program within a Maximum Period of Five Years
with Monitoring, Prohibition of Contracting with European
Governments for the Period of three years.
Up to ten Years in Prison, Fine of up to €200,000,
Prohibition from Exercising Public Function and Prohibition
from Exercising Professional Activity covered by Acts of
Corruption
Indeed, those who wish to delve deeper into Sapin II can access the guide which was prepared by AFA to help readers comprehend its extensive content.
In the first half of 2022, the Eurobarometer, a very efficient research tool used by the European Union, showed that 64% of French people considered corruption to be a widespread phenomenon in France, with 7% saying they had already been a victim of it.
Based on this research and after implementing the first multi-year plan from 2020 to 2022, which aimed to continuously improve the fight against corruption, AFA decided to focus on a second plan. This was done with the input of different levels of society and in accordance with the guidelines implemented by the Organisation for Economic Co-operation and Development (OECD), from Group of States against Corruption of the Council of Europe (GRECO) and United Nations Office on Drugs and Crime in the Fight against Corruption (UNODC).
The public consultation process that resulted in society's engagement took place on November 19, 2023, the content of which can serve as an excellent reference of good practices for other countries – among them, Brazil.
Here is the content of the public consultation questions:
FOCUS
QUESTIONS
1.
Knowing and detecting integrity violations
(compliance)
What additional measures could be implemented to
better understand and detect integrity violations?
2.Sanctioning integrity violations
In your opinion, do the penalties and measures
provided for by law make it possible to effectively
repress and prevent violations of integrity? If not,
what additional measures would better achieve this
objective?
3.Scope of the integrity violation prevention and
detection system
In your opinion, would it be appropriate to modify
the law to reinforce and explain the measures expected
from public actors? You can make distinctions in your
answer according to the category and size of the
public figures involved
.
4.Obligations of public agents and employees
Do you think other measures could strengthen the
prevention on risks of attacks on the integrity of
public agents and employees?
5.Supporting local authorities’ probity efforts
In addition to the elements mentioned in question 6,
in your opinion, what additional measures would
strengthen the fight against probity violations in
local authorities and the establishments that depend
on them? What measures would be suitable for smaller
local authorities?
6.Ensuring perfect compliance with probity rules in
public procurement
In your opinion, are other measures necessary to
reduce the risks of corruption in public contracts?
7.Geographic and sectoral priorities
In your opinion, which sectors of activity or
geographic sectors deserve special attention in terms of
preventing the risks of corruption and other
integrity violations? What measures do you consider
would be particularly appropriate for these sectors?
8.Raising awareness and communicating, especially
with younger people
What measures would be likely to better inform and
raise public awareness on the importance of transparency
and the need to combat breaches of integrity? More
specifically, what measures would help raise
awareness among young people in particular?
9.Protecting the economic sector
Under these conditions, which measures do you
consider could allow us to reinforce the robustness of
economic actors to face the risks of undermining
probity? Should we consider mechanisms to
professionalize and strengthen the anti-corruption
compliance function in large companies? Would
specific measures be appropriate to protect SMEs
(small and medium-sized enterprises) and small FTEs
(intermediate-sized enterprises)?
10.Promoting France's action at international level
In this context, how do you think we could best
promote France's role and influence at European and
international level in favor of the fight against
attacks on integrity? Do you consider that a strong
commitment to respecting probity rules constitutes a
factor of economic attractiveness at an international
level and, if so, how can it be promoted?
It can be seen that the above questions are very interesting and their contributions can bring an improvement to the anti-corruption program undertaken by AFA. The result of this public consultation will certainly be followed with great interest by the international community.
The French anti-corruption act called Sapin II, number #1691/2016, is celebrating its anniversary this December 9th, after seven years of existence.
To understand the historical context, Sapin II has the number 2 because it was sanctioned 23 years after Sapin I, dated January 29, 1993. Sapin II has 169 articles and aims to prevent corruption and influence peddling, as well as guarantee transparency in economic life.
Sapin II must always be implemented with three focuses: (i) prevention, (ii) detection, and (iii) remediation. Furthermore, it establishes eight pillars, in its article 17, which must be observed in order for its principles not to be violated:
THE EIGHT PILLARS OF THE SAPIN II ACT
1. Code of Conduct
2. Internal Alert System (a.k.a. Speak Up Policy + Channel for Reporting Misconduct)
3. Risk Cartography (a.k.a. Risk Mapping)
4. Third Party Risk Assessment (a.k.a. Due Diligences)
5. Accounting Control
6. Staff and Exposed Employees Training
7. Disciplinary regime
8. Internal Control and Assessment
Another major innovation of Sapin II was the creation of French Anti-Corruption Agency (AFA). To ensure the implementation of the pillars above, the agency can adopt the penalties provided for in Sapin II, which differ depending on whether the target is a legal entity or an individual:
VIOLATION DESCRIPTION
LEGAL ENTITY
INDIVIDUAL
Corruption or influence peddling
Fine of up to 30% of the company's revenue,
Administrative fine of up to €1 million, Injunction
Agreement with Obligation to Submit (CJIP) to a
Compliance Program within a Maximum Period of Five Years
with Monitoring, Prohibition of Contracting with European
Governments for the Period of three years.
Up to ten Years in Prison, Fine of up to €200,000,
Prohibition from Exercising Public Function and Prohibition
from Exercising Professional Activity covered by Acts of
Corruption
Indeed, those who wish to delve deeper into Sapin II can access the guide which was prepared by AFA to help readers comprehend its extensive content.
In the first half of 2022, the Eurobarometer, a very efficient research tool used by the European Union, showed that 64% of French people considered corruption to be a widespread phenomenon in France, with 7% saying they had already been a victim of it.
Based on this research and after implementing the first multi-year plan from 2020 to 2022, which aimed to continuously improve the fight against corruption, AFA decided to focus on a second plan. This was done with the input of different levels of society and in accordance with the guidelines implemented by the Organisation for Economic Co-operation and Development (OECD), from Group of States against Corruption of the Council of Europe (GRECO) and United Nations Office on Drugs and Crime in the Fight against Corruption (UNODC).
The public consultation process that resulted in society's engagement took place on November 19, 2023, the content of which can serve as an excellent reference of good practices for other countries – among them, Brazil.
Here is the content of the public consultation questions:
FOCUS
QUESTIONS
1.
Knowing and detecting integrity violations
(compliance)
What additional measures could be implemented to
better understand and detect integrity violations?
2.Sanctioning integrity violations
In your opinion, do the penalties and measures
provided for by law make it possible to effectively
repress and prevent violations of integrity? If not,
what additional measures would better achieve this
objective?
3.Scope of the integrity violation prevention and
detection system
In your opinion, would it be appropriate to modify
the law to reinforce and explain the measures expected
from public actors? You can make distinctions in your
answer according to the category and size of the
public figures involved
.
4.Obligations of public agents and employees
Do you think other measures could strengthen the
prevention on risks of attacks on the integrity of
public agents and employees?
5.Supporting local authorities’ probity efforts
In addition to the elements mentioned in question 6,
in your opinion, what additional measures would
strengthen the fight against probity violations in
local authorities and the establishments that depend
on them? What measures would be suitable for smaller
local authorities?
6.Ensuring perfect compliance with probity rules in
public procurement
In your opinion, are other measures necessary to
reduce the risks of corruption in public contracts?
7.Geographic and sectoral priorities
In your opinion, which sectors of activity or
geographic sectors deserve special attention in terms of
preventing the risks of corruption and other
integrity violations? What measures do you consider
would be particularly appropriate for these sectors?
8.Raising awareness and communicating, especially
with younger people
What measures would be likely to better inform and
raise public awareness on the importance of transparency
and the need to combat breaches of integrity? More
specifically, what measures would help raise
awareness among young people in particular?
9.Protecting the economic sector
Under these conditions, which measures do you
consider could allow us to reinforce the robustness of
economic actors to face the risks of undermining
probity? Should we consider mechanisms to
professionalize and strengthen the anti-corruption
compliance function in large companies? Would
specific measures be appropriate to protect SMEs
(small and medium-sized enterprises) and small FTEs
(intermediate-sized enterprises)?
10.Promoting France's action at international level
In this context, how do you think we could best
promote France's role and influence at European and
international level in favor of the fight against
attacks on integrity? Do you consider that a strong
commitment to respecting probity rules constitutes a
factor of economic attractiveness at an international
level and, if so, how can it be promoted?
It can be seen that the above questions are very interesting and their contributions can bring an improvement to the anti-corruption program undertaken by AFA. The result of this public consultation will certainly be followed with great interest by the international community.
Share with
Related
No items found.
ABOUT US
Licks’ Blog provides regular and insightful updates on Brazil’s political and economic landscape. The posts are authored by our Government Affairs & International Relations group, which is composed of experienced professionals from different backgrounds with multiple policy perspectives.
Licks Attorneys is a top tier Brazilian law firm, speciallized in Intellectual Property and recognized for its success handling large and strategic projects in the country.
ABOUT US
Licks Attorneys Compliance’s Blog provides regular and insightful updates about Ethic and Compliance. The posts are authored by Alexandre Dalmasso, our partner. Licks Attorneys is a top tier Brazilian law firm, specialized in Intellectual Property and recognized for its success handling large and strategic projects in the country.
QUEM SOMOS
O blog Licks Attorneys Compliance fornece atualizações regulares e esclarecedoras sobre Ética e Compliance. As postagens são de autoria de Alexandre Dalmasso, sócio do escritório. O Licks Attorneys é um escritório de advocacia brasileiro renomado, especializado em Propriedade Intelectual e reconhecido por seu sucesso em lidar com grandes e estratégicos cases no país.
-min.jpg)
