Corporate Governance and Compliance in Equatorial Guinea: Navigating the New Criminal Code
A Significant Shift in Corporate Liability
In August 2022, Equatorial Guinea introduced a new criminal code (Law No. 4/2022), marking a significant departure from its colonial-era code. This development has brought about a separate legal entity criminal law framework, which imposes enhanced penalties on companies found guilty of crimes or misdemeanors committed by their representatives or employees.
Key Changes in the New Criminal Code
- Criminal liability of legal persons: Companies may now be held criminally liable for crimes committed by their representatives or employees, even if they have not exercised due control over them.
- Internal control systems: Companies are required to take measures to prevent the commission of crimes and establish internal control systems.
- Economic sanctions: Failure to comply with these requirements may result in economic sanctions, including fines, closure, or suspension of operations, or even the dissolution of the corporate entity.
The Role of Compliance Officers
Compliance officers play a crucial role in designing, implementing, and maintaining programs and policies that ensure a company’s compliance with applicable laws and regulations. This includes:
- Internal audits: Conducting regular internal audits to identify and mitigate risks.
- Training staff: Training staff on compliance issues to ensure they understand their roles and responsibilities.
- Regulatory engagement: Working with regulators to ensure ongoing compliance.
Implications for Businesses
The new criminal code has significant implications for businesses operating in Equatorial Guinea. Companies must now take proactive steps to ensure compliance with applicable laws and regulations, including:
- Establishing internal control systems: Implementing robust internal control systems to prevent the commission of crimes.
- Training staff: Training staff on compliance issues to ensure they understand their roles and responsibilities.
Expert Guidance from Centurion Law Group
Centurion Law Group offers expert advice and support to businesses operating in Equatorial Guinea. Our team of lawyers and business advisors have in-depth knowledge of the new criminal code and can guide clients through the complexities of corporate governance and compliance in Equatorial Guinea. Contact us today to learn more about how we can help your business thrive in this dynamic market.