#White collar crime                          

UBS Bank convicted for moral harassment against two whistleblowers by French Courts

The Swiss bank UBS has been sentenced to a fine of 75,000 euros for moral harassment committed against two former employees who were whistleblowers regarding illegal tax practices, as well to compensate the plaintiff. This unprecedented decision comes at a time when the bank and its branches have been the subject of criminal proceedings resulting in the conviction of UBS AG for tax fraud laundering and illegal bank solicitation in 2023, for which the sentence has yet to be reviewed, and of UBS France for complicity of illegal bank solicitation in 2021. Read the article

Bernard Squarcini, former intelligence chief, sentenced to four years’ imprisonment, two of which are unsuspended, for illegal activities, in particular for the benefit of LVMH

Bernard Squarcini, the former head of the French Central Intelligence Agency, has been sentenced to four years in prison, two of which will be served under electronic monitoring, as well as a fine of €200,000 and a five-year professional ban. Convicted of passive influence peddling, breaching defence secrecy and breaching professional secrecy, he is alleged to have collected sensitive information for LVMH and to have illegally monitored François Ruffin. LVMH avoided prosecution through a €10 million CJIP in 2021. Bernard Squarcini has lodged an appeal, thereby suspending the execution of his sentence. > Read the article

#Anti-Bribery and Corruption

European parliament searched as part of corruption investigation

On 13 March, 2024, Belgian police searched the European Parliament as part of an investigation into active corruption, forgery and money laundering. Commercial lobbying practices aimed at “promoting purely private commercial interests within the context of political decisions” are in question, such as the remuneration of political positions or  excessive gifts. Several arrests were conducted on the same day, but no member of the European parliament has been arrested. > Read the article

#Ethics and compliance

The French Senate Modifies the CSRD Implementation Timeline

On 10 March, 2025, the French Senate voted to postpone the application of the European Corporate Sustainability Reporting Directive (CSRD) by four years for certain categories of companies. Initially, the CSRD required companies to publish sustainability reports according to a phased schedule. Companies in the “second wave” were originally expected to publish their reports for financial years starting on or after January 1, 2025. They will now have until 1 January 2029, with a first publication in 2030.  Small or medium-sized public companies will see their deadline pushed back to 1 January 2030, while large non-European companies will have until 1 January 2032. This postponement aims to give companies the necessary time to adapt to the Directive’s requirements. > Read the article

Sanofi, which manufactures Depakine, indicted in the investigation into toxic discharges from its Mourenx plant

The Sanofi group was indicted in late November 2024 for “obstructing an administrative environmental inspection” and two violations related to toxic discharges from its Mourenx plant. However, it avoided indictment for “endangering the lives of others” and remains under the status of assisted witness. The case involves exceeding emission thresholds for bromopropane and sodium valproate between 2012 and 2018. Around fifteen local residents have joined the proceedings as civil parties, while Sanofi denies any wrongdoing and highlights independent studies that refute any health impact from potential emissions on employees and residents. Sanofi also maintains that it complied with the prefectural order setting emission thresholds for these toxic substances. > Read the article

#Internal investigations

Internal Investigations and the Role of the Investigating Lawyer

Internal investigations in social matters are on the rise in France, drawing inspiration from American practices in that area. Law firms conduct these investigations to address allegations of wrongdoing, such as harassment or corruption after receiving an alert and/or in cooperation with authorities. Although there is no strict legal framework, companies rely on case law and best practices to structure these inquiries. Outsourcing investigations to lawyers ensures an impartial approach that complies with ethical rules and is subject to attorney-client privilege. > Read the article