Lex Mundi Global Anti-Corruption Compliance Guide |
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Czech Republic |
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| (Europe) Firm PRK Partners Updated 01 Feb 2022 | |
| What is the key anti-bribery and corruption legislation in your jurisdiction? | Although there is no specific legislation similar to UK anti-bribery law, bribery has been subject to criminal prosecution since 1950 to some extent. Currently the Criminal Code 40/2009 Coll. sets out the criminal offenses in cases of:
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| Has there been a specific anti-bribery and corruption law enacted in your jurisdiction in the last ten years? | As specified under "What is the key anti-bribery and corruption legislation in your jurisdiction?", there is no specific anti-bribery legislation. Nonetheless, bribe taking and giving has been prosecuted under criminal law:
There is also Act no. 169/2006 Coll. on conflict of interests of public officials, containing specific rules for acceptability and transparency of gifts and remuneration by some public officials. |
| Is a bribe payment to domestic government officials prohibited by the legislation? | Yes, this would fall in the category of bribery related to the conducting matters in general interest. If there is a public official involved in the crime, it is automatically considered as a more serious crime, which means higher sanctions for both the bribe giver and bribe receiving official. |
| Is a bribe payment to foreign government officials prohibited by the legislation? | Yes, this would also fall in the category of bribery related to the conducting matters in general interest. Czech criminal law specifically includes foreign public officials (legislators, judiciary officials and public authority officials of third countries and international and multinational bodies) in the definition of a public official. If there is a public official involved in the crime, it is automatically considered as a more serious crime, which means higher sanctions for both the bribe giver and bribe receiving official. |
| Is requesting or accepting a bribe prohibited by the legislation? | Yes, both requesting and accepting a bribe are prohibited by criminal law, as described in "What is the key anti-bribery and corruption legislation in your jurisdiction?". |
| Who is subject to the legislation? | The Czech criminal law (and, accordingly, the prosecution of criminal offenses described in it) applies to:
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| Is there criminal liability for corporate entities who have either paid or accepted a bribe payment? | Yes, there is criminal liability for corporate entities for all of the offenses listed under "What is the key anti-bribery and corruption legislation in your jurisdiction?", also, the corporate entities may be prosecuted. |
| What is the penalty for individuals violating the law? | It depends on the seriousness and other circumstances of the crime, but the penalties under criminal law may range up to:
Financial penalty may range from CZK two thousand to CZK 36.5 million, forfeiture of the property, the confiscation of the item. |
| Assuming corporate entities are liable for violating the legislation, what is the penalty for corporate entities violating the law? | A company liable for a criminal offense may be liable for a monetary penalty ranging from CZK 20 thousand to the maximum penalty CZK 1.46 billion and may be punished by dissolution of the entity, forfeiture of the entity’s property, confiscation of an item or a different property value, banning from carrying out its activities or from receiving subventions, and by publication of the judgment. |
| Assuming corporate entities are liable for violating the legislation, does having a compliance program designed to prevent bribery constitute a defense? | A legal entity may not be liable if it can prove that it made every effort justifiably required to prevent the perpetration of an offense. Functional and effective compliance program consisting of reasonable rules, as well as enforcement and control environment, may qualify as the effective measure to prevent or avoid the criminal offense, which may exculpate the corporate entity entirely in case of excessive unauthorized behavior of the employees. However, no compliance program will help in cases that the criminal offense is committed by:
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| Assuming corporate entities are liable for violating the anticorruption law, is it possible for a corporate entity to reach a deferred prosecution agreement or leniency agreement with the enforcement authorities? | Deferred prosecution agreements and leniency agreements are not available for corporate entities. While corporate entities can generally avoid prosecution for criminal offenses if they voluntarily desist and either prevent the crime or remedy the consequence, such “effective regret” leniency is not applicable to bribery offenses. |
Lex Mundi Global Anti-Corruption Compliance Guide
Although there is no specific legislation similar to UK anti-bribery law, bribery has been subject to criminal prosecution since 1950 to some extent. Currently the Criminal Code 40/2009 Coll. sets out the criminal offenses in cases of:
- bribe receiving or giving, where the bribery is related to the conducting matters in general interest (especially public interest and public administration);
- bribe receiving or giving, related to business activities of the bribe giver or bribe receiver;
- indirect bribery (accepting or offering a bribe in order to act as an influence on a public official); and
- bribery between competitors aimed to distort competition.
As specified under "What is the key anti-bribery and corruption legislation in your jurisdiction?", there is no specific anti-bribery legislation. Nonetheless, bribe taking and giving has been prosecuted under criminal law:
- since 1950 in case of bribery related to conducting matters in general interest; and
- since 2010 in case of bribery related to business activities.
There is also Act no. 169/2006 Coll. on conflict of interests of public officials, containing specific rules for acceptability and transparency of gifts and remuneration by some public officials.
Yes, this would fall in the category of bribery related to the conducting matters in general interest.
If there is a public official involved in the crime, it is automatically considered as a more serious crime, which means higher sanctions for both the bribe giver and bribe receiving official.
Yes, this would also fall in the category of bribery related to the conducting matters in general interest. Czech criminal law specifically includes foreign public officials (legislators, judiciary officials and public authority officials of third countries and international and multinational bodies) in the definition of a public official.
If there is a public official involved in the crime, it is automatically considered as a more serious crime, which means higher sanctions for both the bribe giver and bribe receiving official.
Yes, both requesting and accepting a bribe are prohibited by criminal law, as described in "What is the key anti-bribery and corruption legislation in your jurisdiction?".
The Czech criminal law (and, accordingly, the prosecution of criminal offenses described in it) applies to:
- anyone, who commits a criminal offense in the Czech Republic (including those committed on board of vessels registered in the Czech Republic), and
- criminal offenses committed anywhere in the world by Czech nationals as well as people without any nationality having their permanent residency in the Czech Republic.
Yes, there is criminal liability for corporate entities for all of the offenses listed under "What is the key anti-bribery and corruption legislation in your jurisdiction?", also, the corporate entities may be prosecuted.
It depends on the seriousness and other circumstances of the crime, but the penalties under criminal law may range up to:
- 12 years for bribe-taking or requesting;
- six years for bribe offering;
- three years for indirect bribe-taking or requesting;
- two years for indirect bribe offering; and
- eight years for bribery between competitors.
Financial penalty may range from CZK two thousand to CZK 36.5 million, forfeiture of the property, the confiscation of the item.
A company liable for a criminal offense may be liable for a monetary penalty ranging from CZK 20 thousand to the maximum penalty CZK 1.46 billion and may be punished by dissolution of the entity, forfeiture of the entity’s property, confiscation of an item or a different property value, banning from carrying out its activities or from receiving subventions, and by publication of the judgment.
A legal entity may not be liable if it can prove that it made every effort justifiably required to prevent the perpetration of an offense.
Functional and effective compliance program consisting of reasonable rules, as well as enforcement and control environment, may qualify as the effective measure to prevent or avoid the criminal offense, which may exculpate the corporate entity entirely in case of excessive unauthorized behavior of the employees.
However, no compliance program will help in cases that the criminal offense is committed by:
- a statutory organ member, senior officer or other person authorized to act on behalf of the corporate entity;
- a person with a decisive influence on the corporate entity; or
- an employee acting upon order, instruction or approval of abovementioned persons.
Deferred prosecution agreements and leniency agreements are not available for corporate entities. While corporate entities can generally avoid prosecution for criminal offenses if they voluntarily desist and either prevent the crime or remedy the consequence, such “effective regret” leniency is not applicable to bribery offenses.