Lex Mundi Global Anti-Corruption Compliance Guide |
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Costa Rica |
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(Latin America/Caribbean)
Firm
Facio & Cañas
Contributors
Sergio Solera |
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| What is the key anti-bribery and corruption legislation in your jurisdiction? | The key anti-bribery and anti-corruption legislation in Costa Rica is:
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| Has there been a specific anti-bribery and corruption law enacted in your jurisdiction in the last ten years? | Yes. The Law on Liability of Legal Entities was recently enacted. This law regulates the criminal liability of legal entities in relation to certain crimes contemplated in the Anti-Corruption Law and in the Criminal Code. It also establishes a procedure for the investigation and establishment of said criminal responsibility, the determination of the corresponding criminal sanctions and the execution thereof, as well as the cases in which this new law is applicable. |
| Is a bribe payment to domestic government officials prohibited by the legislation? | Yes, bribe payments to domestic government officials are prohibited in Costa Rica.
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| Is a bribe payment to foreign government officials prohibited by the legislation? | Yes, bribe payments to foreign government officials are prohibited under the Anti-Corruption Law, Section 55 (Transnational bribery). |
| Is requesting or accepting a bribe prohibited by the legislation? | Yes, requesting or accepting a bribe is prohibited by Costa Rican legislation. |
| Who is subject to the legislation? | The Regulation to the Anti-Corruption Law applies to managers and legal representatives of legal entities that guard, manage or exploit funds, goods or services of the Public Administration, by any title or modality of management (Section 2(e) of the Regulation to the Anti-Corruption Law). The Anti-Corruption Law applies to acts of corruption committed outside Costa Rica or that produce their effects outside Costa Rica, when in a country which is a party to the Inter-American Convention against Corruption (Section 13 of the Anti-Corruption Law). The Law on Liability of Legal Entities applies to (Section 2 of the Law on Liability of Legal Entities):
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| Is there criminal liability for corporate entities who have either paid or accepted a bribe payment? | Yes, there is now criminal liability for corporate entities. This is expressly covered in the Law on Liability of Legal Entities, Section 4: "Attribution of criminal liability of legal entities". |
| What is the penalty for individuals violating the law? | Anti-Corruption Law (Chapter V about crimes): Penalties range from three months to 10 years in prison. |
| Assuming corporate entities are liable for violating the legislation, what is the penalty for corporate entities violating the law? | Summary of possible penalties in accordance with the Law on Liability of Legal Entities (Section 11):
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| Assuming corporate entities are liable for violating the legislation, does having a compliance program designed to prevent bribery constitute a defense? | Having a compliance program to prevent bribery does not exclude liability for the corporation in case of a crime. However, the Law on Liability of Legal Entities provides regulation about a non-mandatory model of organization, crime prevention, processing and control to prevent, detect, correct and report to competent authorities the commission of crimes. Having such a model in place before a crime takes place serves as an extenuating circumstance (article 12.i) which may result in a reduction of up to 40 percent of the penalty to be imposed. |
| 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? | Yes. The legal resources of conciliation otherwise applicable to natural persons in penal prosecution are available to legal entities in anticorruption proceedings as well. |
Lex Mundi Global Anti-Corruption Compliance Guide
Costa Rica
(Latin America/Caribbean) Firm Facio & CañasContributors Sergio Solera
Updated 01 Feb 2022The key anti-bribery and anti-corruption legislation in Costa Rica is:
- Law No. 8422 against corruption and illicit enrichment in the public service (Ley contra la Corrupción y el Enriquecimiento Ilícito en la Función Pública) (Anti-Corruption Law), effective as of October 29, 2004;
- Executive Decree No. 32333-MP-J (Reglamento a la Ley contra la Corrupción y el Entiquecimiento Ilícito en la Función Pública) (Regulation to the Anti-Corruption Law), effective as of April 29, 2005.
- Law No. 9699 on the liability of legal entities for domestic bribery, transnational bribery and other crimes (Ley de responsabilidad de las personas jurídicas sobre cohechos domésticos, soborno transnacional y otros delitos) (Law on Liability of Legal Entities), effective as of June 11, 2019.
- Law No. 4573. Criminal Code, effective as of November 15, 1970.
Yes. The Law on Liability of Legal Entities was recently enacted. This law regulates the criminal liability of legal entities in relation to certain crimes contemplated in the Anti-Corruption Law and in the Criminal Code. It also establishes a procedure for the investigation and establishment of said criminal responsibility, the determination of the corresponding criminal sanctions and the execution thereof, as well as the cases in which this new law is applicable.
Yes, bribe payments to domestic government officials are prohibited in Costa Rica.
Sections in the Anti-Corruption Law that refer to bribe payments include:
- 16. Prohibition of receiving undue compensation;
- 20. Donations and gifts regime;
- 38 (e)(m). Causes of administrative responsibility;
- 44 bis. Administrative sanctions to legal persons; and
- 45. Illicit enrichment.
Yes, bribe payments to foreign government officials are prohibited under the Anti-Corruption Law, Section 55 (Transnational bribery).
Yes, requesting or accepting a bribe is prohibited by Costa Rican legislation.
The Regulation to the Anti-Corruption Law applies to managers and legal representatives of legal entities that guard, manage or exploit funds, goods or services of the Public Administration, by any title or modality of management (Section 2(e) of the Regulation to the Anti-Corruption Law).
The Anti-Corruption Law applies to acts of corruption committed outside Costa Rica or that produce their effects outside Costa Rica, when in a country which is a party to the Inter-American Convention against Corruption (Section 13 of the Anti-Corruption Law).
The Law on Liability of Legal Entities applies to (Section 2 of the Law on Liability of Legal Entities):
- Costa Rican or foreign legal entities, domiciled or with operations in Costa Rica.
- Public entities linked to international commercial relations committing the crime of transnational bribery, as well as the crimes of receipt, legalization or cover-up of goods resulting from transnational bribery.
Yes, there is now criminal liability for corporate entities. This is expressly covered in the Law on Liability of Legal Entities, Section 4: "Attribution of criminal liability of legal entities".
Anti-Corruption Law (Chapter V about crimes): Penalties range from three months to 10 years in prison.
Summary of possible penalties in accordance with the Law on Liability of Legal Entities (Section 11):
- Fines from one thousand to ten thousand base salaries. If the offense is related to an administrative contracting procedure, a fine of up to ten percent of the amount of the initial offer or the award (the greater amount) could be applied. A disqualification for public procurement procedures for up to ten years may also apply.
- Loss or suspension of government benefits or subsidies previously granted, for a period of three to ten years.
- Inability to enjoy tax or social security benefits or incentives for a period of three to ten years.
- Total or partial cancellation of the operation or operation permit, concessions or contracts obtained as a result of the crime.
- Dissolution of the legal entity.
Having a compliance program to prevent bribery does not exclude liability for the corporation in case of a crime. However, the Law on Liability of Legal Entities provides regulation about a non-mandatory model of organization, crime prevention, processing and control to prevent, detect, correct and report to competent authorities the commission of crimes. Having such a model in place before a crime takes place serves as an extenuating circumstance (article 12.i) which may result in a reduction of up to 40 percent of the penalty to be imposed.
Yes. The legal resources of conciliation otherwise applicable to natural persons in penal prosecution are available to legal entities in anticorruption proceedings as well.