Financial Crime World

Denmark Cracks Down on Corruption with Stringent Laws and Regulations

Denmark has made significant strides in combating corruption by implementing a robust legal framework that holds individuals and companies accountable for bribery and other corrupt practices. As a member of the OECD Anti-Bribery Convention, Denmark has committed to preventing corruption and promoting transparency.

Bilateral and Multilateral Conventions

  • Denmark is a signatory to several key agreements, including:
    • United Nations Convention against Corruption
    • EU conventions
    • Criminal Convention on Corruption from the Council of Europe
    • The Group of States against Corruption (GRECO)

Liability for Companies and Individuals

  • Companies in Denmark can be held liable for corruption under criminal law, but only if they are found to have acted through their management or other relevant individuals.
  • There is no specific legislation that holds companies liable for acts of corruption.
  • Individuals in Denmark are subject to severe penalties for engaging in corrupt activities, including bribery and embezzlement.

Prohibited Practices

  • Facilitation payments are strictly prohibited in Denmark.
  • There is no legal regulation or maximum limit on accepting or giving gifts, invitations, etc.

Public Sector Measures

  • The Danish government has implemented measures to prevent corruption in the public sector.
  • The Ministry of Finance, Local Government Denmark, and Danish Regions have published a “Code of Conduct in the Public Sector,” which prohibits public officials from receiving gifts or benefits of any kind, except in special cases.

Extraterritorial Reach

  • Denmark’s legislation has extraterritorial reach, allowing for prosecution of individuals who bribe foreign government officials.
  • The country also has laws that allow for confiscation of assets obtained through corrupt activities.

No Deferred Prosecution or Non-Prosecution Agreements

  • The Danish government does not rely on deferred prosecution or non-prosecution agreements to resolve corruption cases.
  • There is no specific legislation that holds parent companies liable for the acts of their subsidiaries.

Mitigating Factors

  • Case law recognizes that companies can mitigate liability by implementing effective compliance management systems.
  • Cooperation with authorities or an internal investigation can also be a mitigating factor in determining sanctions.

Compliance Programs and Guidelines

  • The Danish authorities have published guidelines on compliance programs, leniency agreements, and other anti-corruption measures.
  • For example, the “Code of Conduct in the Public Sector” is available online.

Conclusion

Denmark’s commitment to combating corruption is evident through its robust legal framework, which holds individuals and companies accountable for corrupt practices. By implementing effective compliance management systems and cooperating with authorities, companies can mitigate liability and promote transparency in business dealings.