Financial Crime World

Corruption Laws and Regulations in Luxembourg

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Legislation

Corruption laws in Luxembourg are governed by Articles 246-250 of the Criminal Code (CC). The law of November 12, 2004, aims to combat money laundering and terrorism.

  • Anti-Corruption Laws: Articles 246-250 of the Criminal Code (CC) outline the provisions related to corruption.
  • Money Laundering and Terrorism Regulations: The law of November 12, 2004, transposes Directive 2001/97/EC, focusing on combating money laundering and terrorism.

Reporting and Whistleblowing

In Luxembourg, self-reporting is not a common practice. However, employees who suspect corruption can report it to the proper authorities. Additionally, reporting is mandatory for employees held to professional secrecy under anti-money laundering regulations.

  • Reporting Corruption: Employees can report suspected corruption to the relevant authorities.
  • Mandatory Reporting: Employees with access to confidential information must report potential corruption offenses.

Defences

There are no exceptions to liability under corruption regulations in Luxembourg, except for hospitality payments to government officials. However, defendants may argue mitigating circumstances depending on the case at hand.

  • Exceptions to Liability: Hospitality payments to government officials are exempt from corruption regulations.
  • Mitigating Circumstances: Defendants can argue for reduced penalties based on specific circumstances.

Risk Management

Companies in Luxembourg must provide clear structures and provisions to guarantee employee rights to report possible offenses. Compliance policies should include procedures for reporting potential corruption offenses.

  • Internal Reporting Mechanisms: Companies must establish clear channels for employees to report suspected corruption.
  • Compliance Policies: Companies’ compliance policies should outline procedures for reporting potential corruption offenses.

Record Keeping and Reporting

Companies in Luxembourg are required to submit annual accounts to the Companies Register (Article 15, Commercial Code). Documents related to accounting must be kept for 10 years (Article 16, Commercial Code).

  • Annual Accounts: Companies must submit their annual accounts to the Companies Register.
  • Document Retention: Accounting documents must be retained for a period of 10 years.

Penalties

Individuals and companies found guilty of corruption offenses in Luxembourg face significant penalties.

Individuals:

  • Active and Passive Bribery: 5-10 years’ imprisonment and a fine of €500-187,000.
  • Influence Peddling: 5-10 years’ imprisonment and a fine of €500-187,500.

Companies or Organizations:

  • Fines: Under Article 36 of the CC, companies can be fined for corruption offenses.
  • Confiscation: Companies may face confiscation of assets related to corruption offenses.
  • Disqualification from Public Tenders: Companies found guilty of corruption may be disqualified from participating in public tenders.
  • Dissolution: In severe cases, companies may be dissolved under Article 38 of the CC.

Date

The information provided is accurate as of September 30, 2016.