Seven years after the entry into force of Law No. 2016-1691 of 9 December 2016, relating to transparency, the fight against corruption, and the modernization of economic life, known as “Sapin II Law”, French authorities continue their efforts towards better management of corruption risks and other breaches of integrity, notably by strengthening corporate and public sector compliance mechanisms.

The French Anti-Corruption Agency has been particularly prolific in its publications

In the fight against corruption and other breaches of integrity, the French Anti-Corruption Agency (Agence française anticorruption – AFA) has been particularly prolific in its publications in recent months and years, issuing practical guides on measuring the exposure of a geographical area to corruption risk and on the sports sector, with publications aimed at preventing breaches of integrity targeted at sports federations as well as operators from the Ministry of Sports and the Olympic and Paralympic Games.

Additionally, on 26 March 2024, the AFA published the “Practical Guide – Securing Sponsorship and Corporate Patronage Operations”, in response to the increase in sponsorship and patronage operations, which can create situations of corruption and influence peddling risks. This guide, which does not create legal obligations for the companies, aims at securing these types of operations and allow them to continue to develop. It describes the situations and risk factors of breaches of integrity that companies may face so they can be aware of and manage them, as well as the various measures of prevention, detection, and remediation that will enable them to effectively control these risks.

To learn more on the issue: The AFA’s new practical guide to corporate sponsorship operations

The French Department of Competition, Consumer Affairs and Fraud Repression showcase its priority on “anti-gift” system and the proper functioning of the medical products markets

Similarly, the French Department of Competition, Consumer Affairs and Fraud Repression (Direction générale de la concurrence, de la consommation et de la répression des fraudes – DGCCRF) launched a broad investigation a few years ago into the compliance with the so-called “anti-gift” system in the medical and pharmaceutical sectors. This investigation ultimately led to the conviction of a renowned pharmaceutical group by the Dijon Judicial Court through a procedure of plea bargaining (comparution sur reconnaissance préalabla de culpabilité – CRPC) to a fine of more than 1.125 million euros and the confiscation of seized assets used to commit the offense, for offering or providing pharmacists with in-kind benefits in exchange for the purchase of non-discounted products. Upon publishing this decision, the DGCCRF reminded that its investigative services intend to continue their investigations and emphasized that compliance with the “anti-gift” system and the proper functioning of the medical products markets are a priority to which it is fully committed.

To learn more on the issue: Overview of the “anti-gift” procedure applicable to actors operating in the health sector in the context of the Urgo case

AFA conducted a survey on third-party evaluation procedures

Furthermore, under the Sapin II Law, which requires the largest French companies to implement third-party evaluation procedures based on corruption risk mapping, the AFA conducted a survey on this subject among private actors, the results of which were published on 26 May 2024.

The themes addressed included :

• the inventory of third parties,
• the conceptualization of homogeneous groups of third parties,
• the individual evaluation of third parties,
• the assessment of the level of corruption risk,
• the renewal and updating of evaluations,
• the follow-ups to be given and vigilance measures,
• the controls within the framework of evaluations, and the implementation, formalization, and traceability of the evaluation system.

For instance, it emerged that two out of three respondents inventory all their third parties and that the most used sources for this are accounting tools, customer relationship management tools, and risk mapping interviews; that more than 80% of respondents implement their evaluation system after or simultaneously with the development of their corruption risk mapping; or that nine out of ten respondents determine the information to be collected for each third party based on the ex-ante risk level and that the majority collect the same information regardless of this risk level.

To learn more on the issue: Third-party evaluation procedures (in French)

The Group of States against Corruption (GRECO) has evaluated French anti-corruption measures

Finally, anti-corruption measures in France have also been evaluated by the Group of States against Corruption (GRECO), which published its report on 22 April 2024. This evaluation cycle focused on preventing corruption and promoting integrity within central governments, particularly higher executive functions, as well as in law enforcement services. The report highlights that several previously issued recommendations have not yet been implemented,  but notes that France has made significant progress, particularly noting  the cooperation between the AFA and the High Authority for the Transparency of Public Life (Haute autorité pour la transparence de la vie publique – HATVP). GRECO urges France to strengthen measures concerning high executive functions, proposing to review the composition of the Court of Justice of the Republic, and to implement a comprehensive strategy dedicated to preventing corruption risks within law enforcement services. It also emphasizes the importance of protecting whistleblowers and ensuring a safe environment for those reporting acts of corruption.

In light of these findings, among others, the public ethics observatory and the public contract law Chair of the Jean Moulin University of Lyon published a “white paper” on 4 September 2023, in which academic researchers proposed a “Sapin III Law aimed at strengthening the fight against corruption and other breaches of integrity”. Through five proposals, these authors call for the improvement of already existing mechanisms, which they prefer over the creation of new tools. This “white paper” is structured around three major axes:  the fight against corruption and other breaches in the public sector, the practice of negotiated justice, and the regime of interest representatives. Therefore, French legislative developments in ethics will need to be closely monitored in the coming months!