Financial Crime World

Corporate Scandals Land Directors and Officials in Hot Water

In an effort to crack down on corporate malfeasance, Portuguese authorities have introduced stricter penalties for those who engage in bribery, influence peddling, and related offenses.

New Laws and Penalties

  • Directors and officials found guilty of exceeding 90 days or imprisonment for a term not exceeding six months can face fines ranging from EUR120 to EUR3,000.
  • The penalty increases if the conduct results in serious damage to shareholders, with those responsible facing fines up to EUR4,500 and imprisonment for up to three years.
  • Those who call general meetings but provide false information are also at risk of being slapped with a fine not exceeding 150 days and imprisonment for up to six months.
  • Officials found guilty of intending to jeopardize a shareholder’s interests can face fines up to EUR5,000 and imprisonment for up to one year.
  • Companies that neglect their stock register or fail to meet legal requirements regarding share records can expect fines ranging from EUR500 to EUR49,879.79.

Bribery: The Ultimate Taboo

Bribery remains a major concern in Portugal, with several laws criminalizing the offense. According to Article 372 of the Criminal Code:

  • Bribery is defined as the receipt of an advantage without legal justification or ground.
  • Political officials and high public servants are also subject to separate laws that outlaw undue advantages.

Influence Peddling: A Growing Concern

Influence peddling has also become a significant issue in Portugal. According to Article 335 of the Criminal Code:

  • Anyone who asks or accepts a monetary or non-monetary advantage in exchange for abusing their influence over public entities can face imprisonment for up to five years.

Conclusion

The authorities are sending a strong message that corporate malfeasance will not be tolerated, and those found guilty will face severe penalties. The move is expected to have a positive impact on the business community, promoting transparency and accountability at all levels.