Legislation that can impact you
Financial crime and fraud can appear with many faces and there is currently no exclusive civil or regulatory requirement that directly regulates this. Financial crime and fraud is subject to regulation by the penal code and forms part of many key laws governing the public and the business sector.
However corruption has become globally one of the focus areas of legal regulation and in particular via international legislation that is imposing extraterritorial reach.
Luxembourg
Law of 15 January 2001 - Implementing the OECD convention
- Up to 7.5 Mio EUR fine and up to 10 years imprisonment for bribing public officials;
- Up to 5 Mio EUR and up to 5 years imprisonment for persons requesting/receiving bribes.
Law of 23 May 2005 - Implementing EU anti-bribery treaty
- Direct/indirect corruption; forbids acceptance and giving of benefits from or to national and foreign officials;
- "Managers and representatives of companies shall not require, accept or make an offer, promise or advantage of any kind, directly or indirectly to prevent from performing or to perform their duties without approval of supervisory board or their employer";
- 5 years of imprisonment in case of infringement.
Law of 1 August 2007 - Implementing UN convention against corruption
- Specific bookkeeping requirements.
Law of 13 February 2011 - Reinforcement of the fight against corruption
- Modifications of the labour law, law of public official, Code Penal and Code d’Instruction Criminelle; eg. Whistle-blower protection.
International legislations with extraterritorial reach
UK Bribery Act
The UK Bribery Act 2010 is currently the most stringent legislation fighting bribery and corruption. Key features of this new legislation include strong extraterritorial reach as well as introducing the corporate offence of failing to prevent bribery. In order to defend companies against this offence, it become crucial to demonstrate adequate procedures to avoid significant consequences for the company and the acting individuals. After several rounds of consultation it will become effective in July 2011.
US FCPA
The Foreign Corrupt Practices Act (FCPA) dates back to the 1977s bur is still the most important international and extraterritorial applicable law against bribery and corruption.
Contact us
Michael Weis
Advisory Partner, Forensics & Anti-Financial Crime Leader, PwC Luxembourg
Tel: +352 49 48 48 4153
