Its most relevant provisions for the corporate world come in three parts. First, corporate liability for failure of supervision or control, where someone in a leadership position enables a third party acting under their authority to commit a corruption offence for the benefit of the organization. Second, fines of up to 5% of annual global turnover for the most serious offences, with the possibility of additional sanctions such as exclusion from public tenders or temporary disqualification from business activities. Third, the formal recognition of compliance programs as a mitigating factor, with a clear caveat, courts may disregard programs implemented merely as window dressing.
The directive applies to all companies operating in the EU, regardless of size. Member states have 24 months to transpose it into national law. For multinational companies, the message is straightforward: review and strengthen anti-corruption compliance programs before the clock runs out.
