Analysis
15 January 2021

French Anticorruption Agency’s updates recommendations regarding anticorruption programs

Julie Zorrilla, Princessa Fouda and Héloïse Vigouroux showcase the update to the French Anticorruption Agency’s recommendations for private and public legal entities to fight corruption.

 

Pursuant to the provisions of French Sapin II Law (“Loi Sapin II”)1, the French Anticorruption Agency (“AFA”) issued recommendations aimed at assisting public and private legal entities – whether they are subject or not to the obligation provided for in Article 17 of the Sapin II law to implement preventive and detective measures against corruption2 – in their initiatives to prevent and detect integrity violations within their entities.

As well as the national diagnosis launched by AFA to assess the effectiveness of corruption prevention and detection systems implemented within companies3, the recommendations’ update is part of the first steps of the multi-year national anti-corruption plan 2020-2022 carried out by AFA and approved by the government in early 2020 4.

AFA therefore improves its recommendations as to the 8 pillars of Article 17 of Sapin II law. Hence, the scope of the risk mapping is extended to the risks of influence peddling5. AFA further recommends the extension of the third-party category submitted to due diligence to include third parties with whom the company would like to enter into a relationship for the purpose of an acquisition or for sponsorship6. In addition to training initiatives intended for managers and most exposed employee, AFA urges to raise all employees’ awareness regarding the fight against corruption7. With regard to the internal control and audit system, AFA recommends the establishment of a specific procedure setting out “the processes and situations involving identified risks, the frequency of controls and their procedures, the persons in charge of these controls and the rules for transmitting the results to the management body8.

Furthermore, AFA strengthens the authority of its recommendations. Despite not being legislative in nature, the recommendations are now “opposable” against AFA as part of its inspections9. Accordingly, in the context of an AFA inspection, companies henceforth benefit from a presumption of compliance when they indicate having designed their compliance program in accordance with AFA’s recommendations. It then falls to AFA to demonstrate that this application has been “ineffective, incorrect or incomplete”.10. This amendment is in line with and confirms the decision of the Sanction Commission issued on July 4, 2019, which states that when a company indicates having complied with the methodology recommended by the AFA, “it must be deemed to have provided sufficient information, unless the Agency proves that it failed, in reality, to follow the recommendations11.

Related content

Press review
7 June 2024
Press review – Week of 3 June 2024
This week, the press review covers the trial of several Île-de-France’s elected officials including concealment of misappropriation of corporate assets...
Event
5 June 2024
Update on Sanctions Litigation, Arbitration, and Enforcement – with EU, French and Swiss perspectives
A panel held on 5 June 2024 in Berlin, during the C5's European Forum on Global Economic Sanctions.
Event
3 June 2024
Internal investigations by lawyers: how to approach labor & criminal law issues?
An animated debate on benefits brought by investigating lawyers on criminal or labor law investigations, i.e. independence, secret protection, confidentiality...
1 min
Press review
31 May 2024
Press review – Week of 27 May 2024
This week, the press review covers the conviction of a French senator for illegal taking of interest, the adoption of...
Analysis
29 May 2024
The challenge of regulating generative artificial intelligence
On February 14, the French National Assembly's Law Commission published a report on the challenges posed by generative artificial intelligence...
Video
16 May 2024
Anticorruption initiatives in Latin America: Lessons from the last decade (webinar)
To contribute to the Latin America and Caribbean Weeks event, organised by the French Ministry of Europe and Foreign Affairs...
Publication
14 May 2024
LIR 6th Edition : Focus on ADP INGENIERIE and SEVES Group/SEDIVER CJIPs
Navacelle contributes to The Legal Industry Reviews' sixth edition, focusing on the last two CJIPs (kind of French DPAs) concluded....
Analysis
6 May 2024
Overview of the future European Anti-Money Laundering Authority
The new Authority for Anti-Money Laundering and Countering the Financing of Terrorism will be based in Frankfurt and shall start...
Press review
26 April 2024
Press review – Week of 22 April 2024
This week, the press review covers the European Parliament’s adoption of the Corporate Sustainability Due Diligence Directive, the definitive conviction...
Video
25 April 2024
Webinar: Economic Sanctions Law – Similarities and Differences between the U.S. and French Approach
Roxane Castro has been invited by the Philadelphia Chapter of the French American Chamber of Commerce (FACC Philadelphia) and Buchanan...
Analysis
22 April 2024
Focus on the CJIPs respectively concluded at the end 2023 by ADP Ingénierie and SEVES...
By approving the CJIPs signed between the National financial prosecutor’s office (procureur national financier - PNF) as well as ADP...
Press review
19 April 2024
Press review – Week of 15 April 2024
This week, the press review covers the publication of TRACFIN’s 2023 report on professionals’ suspicious transaction reports, the decision of...