Analysis
14 July 2020

French Prosecutors continue to conclude French Deferred Prosecution Agreements

Bastille Day Newsletter 2020 - 3-lines outline of some noteworthy events

 

(i) CJIP Google France SARL and Google Ireland Ltd, September 3, 2019. On September 3, 2019, the Financial Prosecution Office (“PNF”) concluded a CJIP with Google France SARL and Google Ireland Limited, which agreed to pay a €500 million fine for tax fraud and complicity of tax fraud1. The fine was then lessened, taking into account the tax penalties set by the tax authorities for 2011-2018 that the company had agreed to pay.

(ii) CJIP Société SAS Egis Avia, December 10, 20192. On December 10, 2019, the PNF concluded a CJIP with the French company SAS Egis Avia, which agreed to pay a €2.6 million fine for the bribery of a foreign public official. SAS Egis Avia had been under investigation since October 2013 for the payment of consultancy fees to companies domiciled in Non-Cooperative Countries and Territories – British Virgin Islands – the investigation highlighting financial flows to Algerian public officials to influence the award of a contract for the construction of an airport terminal in Oran.

(iii) CJIP Bank of China, January 15, 20203. On January 15, 2020, the Paris Public Prosecutor’s Office concluded a CJIP with the Bank of China, which agreed to pay a €3 million fine for profits derived from tax fraud laundering on account that they failed to demonstrate that they had complied with anti-money laundering standards relating to customer identification and transaction due diligence. Accounts opened in a Bank of China branch located in the province of Zhejiang, were used to receive funds under false invoices and process cash inflows from the sale of smuggled goods. The modus operandi enabled Chinese account holders residing in France to circumvent corporate tax and VAT for a significant part of their turnover.

(iv) CJIP Airbus SE, January 31, 20204. On January 29, 2020, the PNF concluded a CJIP with Airbus SE, which agreed to pay a €2.083 billion fine for the bribery of public officials. The investigations demonstrated that Airbus hired and paid numerous commercial intermediaries up until 2015. Part of their fees was paid by several occult means, including fictitious loans, without establishing the exact nature of their contribution. This CJIP was signed in coordination with the UK Serious Fraud Office and the US Department of Justice, with which Airbus SE has concluded separate Deferred Prosecution Agreements. Airbus SE also commits to complying with the French Anti-Corruption Agency (“AFA”) controls for a period of three years, to ensure that the compliance program upon which they have agreed has been fully deployed in the company’s entities and subsidiaries.

(v) CJIP Swiru Holding May 4, 20205. On May 4, 2020, the Public Prosecutor’s Office of Nice concluded a CJIP with the Swiss company Swiru Holding AG. The latter agreed to pay a €1.4 million fine, in addition to a separate payment of €10.4 million to the tax administration for tax evasion. The company was indicted in November 2019 for complicity of tax fraud after the investigation revealed concealment of part of the sale price of a villa located in South of France to avoid paying tax on the differential price. The Public Prosecutor’s Office of Nice is the fourth authority that has signed a CJIP, following the PNF, and the Public Prosecutor’s Office of Paris and Nanterre, therefore contributing to a wider use of this transactional tool in France.

Related content

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...
Publication
27 February 2024
New sustainability reporting obligations in France: what’s new?
Navacelle contributes to The Legal Industry Reviews' fifth edition about the transposition of the Corporate Sustainability Reporting Directive (CSRD) in...
Publication
The discreet ramping up of environmental criminal law
5 December 2023
The discreet ramping up of environmental criminal law
Navacelle contributes to The Legal Industry Reviews' fourth edition about recent gradual application of environmental criminal law in France, with...
Press review
24 May 2024
Press review – Week of 20 May 2024
This week, the press review covers the fine imposed on bank company N26, the trial of EDF and its former...
Press review
17 May 2024
Press review – Week of 13 May 2024
This week, the press review covers the death of Renaud Van Ruymbeke, the conviction of former Mayor of Toulon for...
Event
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....
Press review
3 May 2024
Press review – Week of 29 April 2024
This week's press review focuses on the indictments of Arnaud Lagardère for misuse of company assets and abuse of power,...
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...
Analysis
16 April 2024
The AFA’s new practical guide to corporate sponsorship operations
On 26 March 2024, the French Anti-Corruption Agency (“AFA”) published its new practical guide to securing patronage and sponsorship operations.
Analysis
16 April 2024
Overview of the “anti-gift” procedure applicable to actors operating in the health sector in the...
The “anti-gift” procedure provided by the French public health code prohibits actors operating in the health sector, except for some...