Lex Mundi Global Anti-Corruption Compliance Guide |
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Luxembourg |
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| (Europe) Firm Arendt & Medernach Updated 01 Feb 2022 | |
| What is the key anti-bribery and corruption legislation in your jurisdiction? | The Law of January 15, 2001 (the Law) which repealed articles of the Penal Code and introduced anti-corruption provisions and the Law dated February 13, 2011, related to corruption. The Law dated November 2, 2012, which approves the agreement for the establishment of the International Anti-Corruption Academy (IACA) as an international organization (this agreement ratified on December 11, 2012, was enforced on February 9, 2013). |
| Has there been a specific anti-bribery and corruption law enacted in your jurisdiction in the last ten years? | The Law dated February 13, 2011, related to corruption, of which provisions are available in the Penal Code (Arts. 246-250 and 253/Arts. 310 and 310-1). The Law dated 12 March 2020 (Memorial A n°153, 16th March 2020) amending the Penal Code and transposing the Directive (EU) 2017/1371 of the European Parliament and the Council dated 5th July 2017 regarding the fight against fraud affecting the European Union’s financial interests entered into force on March 20, 2020. This text implements the principles and the aims of the convention based on Art. K3 of the European Union Treaty on the fight against corruption involving officials of the European Communities or officials of the Member States of the European Union. |
| Is a bribe payment to domestic government officials prohibited by the legislation? | Yes:
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| Is a bribe payment to foreign government officials prohibited by the legislation? | The Criminal Code makes no difference between citizens of Luxembourg and residents of other nationalities with regard to bribery and corruption. All officials, be it citizens, foreigners, EU officials and institution employees fall within the scope of bribery offenses (Art. 252 of the Criminal Code). |
| Is requesting or accepting a bribe prohibited by the legislation? | Yes, the Penal Code forbids active and passive corruption, so both the paying and receiving of a bribe is prohibited (Arts. 246-251 of the Penal Code). |
| Who is subject to the legislation? | Corporate bodies and individuals can be prosecuted for the commission of a crime or offense and be held liable for bribery. According to Art. 37 of the Criminal Code, the legal liability of an entity can be recognized in cases of active and passive bribery, as well as private bribery. |
| Is there criminal liability for corporate entities who have either paid or accepted a bribe payment? | A company/corporate entity is liable for offenses committed in its name and interest by one of its legal organs or by one or more members of its legal organs. Criminal liability does not exclude natural persons who are perpetrators of or accomplices to the same act. (Art. 34-38 of the Penal Code). |
| What is the penalty for individuals violating the law? | Individuals may be sentenced to jail and to a fine (Art. 246 to 251 and 310-1 of the Criminal Code). The confiscation called “confiscation spéciale” is applicable to individuals who have committed a misdemeanor (Art. 14 of the Criminal Code) or a crime (Art. 7 of the Criminal Code). Additional penalties may be passed: loss of civil rights, disqualification from public procurement, prohibition from practicing certain professions. |
| Assuming corporate entities are liable for violating the legislation, what is the penalty for corporate entities violating the law? | Corporate entities may be sentenced to jail and to a fine. (Art. 246 to 251 of the Criminal Code). Companies/corporate entities are now also subject to criminal liability, and specific sanctions for felonies and misdemeanors incurred by legal persons include:
The confiscation is called “confiscation spéciale”. It applies to corporate bodies which have committed a misdemeanor or a crime (Art. 35 of the Criminal Code). The confiscation applies to any asset which is directly or indirectly the subject or the result of an infringement, which constitutes corruption offenses. |
| Assuming corporate entities are liable for violating the legislation, does having a compliance program designed to prevent bribery constitute a defense? | There exists no such specific mention under the laws of Luxembourg. Internal procedures such as the Code of Conduct and/or internal controls or any other practice of transparency and control implemented in the company may help prevent/detect the occurrence of a crime but in no way mitigates the liability of a company in the eventual occurrence of a crime. |
| 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? | No, it does not exist in Luxembourg. |
Lex Mundi Global Anti-Corruption Compliance Guide
The Law of January 15, 2001 (the Law) which repealed articles of the Penal Code and introduced anti-corruption provisions and the Law dated February 13, 2011, related to corruption.
The Law dated November 2, 2012, which approves the agreement for the establishment of the International Anti-Corruption Academy (IACA) as an international organization (this agreement ratified on December 11, 2012, was enforced on February 9, 2013).
The Law dated February 13, 2011, related to corruption, of which provisions are available in the Penal Code (Arts. 246-250 and 253/Arts. 310 and 310-1).
The Law dated 12 March 2020 (Memorial A n°153, 16th March 2020) amending the Penal Code and transposing the Directive (EU) 2017/1371 of the European Parliament and the Council dated 5th July 2017 regarding the fight against fraud affecting the European Union’s financial interests entered into force on March 20, 2020. This text implements the principles and the aims of the convention based on Art. K3 of the European Union Treaty on the fight against corruption involving officials of the European Communities or officials of the Member States of the European Union.
Yes:
- Anti-bribery provisions of the Criminal Code prohibit the acceptance of gifts or hospitality by government officials and/or public servants (Arts 248 al.1 and 249 al.1 of the Criminal Code: anyone who accepts gifts or hospitality with no legal right will be punished)
- Anti-bribery provisions of the Criminal Code prohibit the acceptance of other advantages like donations to government officials and/or public servants, where the donations are made in return for supporting or refraining from doing an action (Arts. 246, 248 al.1 and 249 al.1 of the Criminal Code: anyone who accepts advantages with no legal right and misuses their influence will be punished.
The Criminal Code makes no difference between citizens of Luxembourg and residents of other nationalities with regard to bribery and corruption. All officials, be it citizens, foreigners, EU officials and institution employees fall within the scope of bribery offenses (Art. 252 of the Criminal Code).
Yes, the Penal Code forbids active and passive corruption, so both the paying and receiving of a bribe is prohibited (Arts. 246-251 of the Penal Code).
Corporate bodies and individuals can be prosecuted for the commission of a crime or offense and be held liable for bribery. According to Art. 37 of the Criminal Code, the legal liability of an entity can be recognized in cases of active and passive bribery, as well as private bribery.
A company/corporate entity is liable for offenses committed in its name and interest by one of its legal organs or by one or more members of its legal organs. Criminal liability does not exclude natural persons who are perpetrators of or accomplices to the same act. (Art. 34-38 of the Penal Code).
Individuals may be sentenced to jail and to a fine (Art. 246 to 251 and 310-1 of the Criminal Code).
The confiscation called “confiscation spéciale” is applicable to individuals who have committed a misdemeanor (Art. 14 of the Criminal Code) or a crime (Art. 7 of the Criminal Code).
Additional penalties may be passed: loss of civil rights, disqualification from public procurement, prohibition from practicing certain professions.
Corporate entities may be sentenced to jail and to a fine. (Art. 246 to 251 of the Criminal Code).
Companies/corporate entities are now also subject to criminal liability, and specific sanctions for felonies and misdemeanors incurred by legal persons include:
- a fine;
- special confiscation; and
- dissolution.
The confiscation is called “confiscation spéciale”. It applies to corporate bodies which have committed a misdemeanor or a crime (Art. 35 of the Criminal Code).
The confiscation applies to any asset which is directly or indirectly the subject or the result of an infringement, which constitutes corruption offenses.
There exists no such specific mention under the laws of Luxembourg. Internal procedures such as the Code of Conduct and/or internal controls or any other practice of transparency and control implemented in the company may help prevent/detect the occurrence of a crime but in no way mitigates the liability of a company in the eventual occurrence of a crime.
No, it does not exist in Luxembourg.