Criminal Compliance is a set of tailored measures designed to ensure that legal entities comply with all applicable laws. This compliance program is implemented to protect organizations from potential criminal liability, particularly in instances where an employee commits an offense during the course of their duties. An effective Criminal Compliance program not only shields the company from legal sanctions but also enhances its reputation in the market and society, demonstrating a strong commitment to legality and best practices.

Objectives of Criminal Compliance

‍The primary objective of Criminal Compliance is to prevent the commission of crimes within an organization. By adopting specific measures, the program ensures that the company adheres to legal regulations, thereby significantly reducing criminal risks. Each company must develop a Criminal Compliance model tailored to its particular circumstances. This model requires all members, from management to employees, to comply with established policies. Rules and sanctions are communicated through documents and tools designed to ensure understanding and implementation at all levels.

Another key objective is the protection of the legal entity. If a member of the organization commits a crime, the existence of an effective Criminal Compliance program may exempt the entity from criminal liability, provided that it can be demonstrated that the program meets legal requirements.

Criminal Compliance Plan

‍The development of a Criminal Compliance plan requires a thorough analysis of the company and its potential risks based on its activities. The measures adopted must specifically aim to prevent criminal conduct and should include:

• Risk Identification: Identifying activities within the organization that may present potential criminal risks.
• Preventive Procedures: Establishing procedures to mitigate these risks.
• Corporate Commitment: Formalizing a clear commitment to comply with established measures.
• Designated Resources: Allocating the necessary resources for the development and implementation of the plan.
• Control Body: Appointing an independent body with authority to oversee compliance with the program.
• Reporting Obligation: Including a requirement for all members of the organization to report any violations of the program.
• Disciplinary Sanctions: Establishing sanctions for non-compliance with Criminal Compliance rules.
• Monitoring Plan: Implementing a monitoring plan with provisions for periodic assessment and necessary adjustments to maintain the program’s effectiveness.

Within organizations, common offenses may include money laundering, tax evasion, fraud, influence peddling, punishable insolvency, embezzlement, breaches of data security, intellectual property crimes, and offenses against public finances, among other corporate crimes. Legal entities without a Criminal Compliance plan may be held criminally liable if a crime occurs within the organization. Possible sanctions include heavy fines, loss of tax incentives, forfeiture of subsidies or social security benefits, closure of facilities, suspension of activities, or even dissolution of the legal entity.

Purpose of Criminal Compliance

‍A Criminal Compliance program enables organizations to identify and control risk factors that could lead to criminal conduct. By implementing preventive measures, the likelihood of offenses occurring within the company is minimized. If the program is properly implemented, it is likely that the company will not become involved in criminal proceedings.

Moreover, an effective compliance program promotes internal organization and fosters a balanced work environment in which all members are aware of corporate policies and the consequences of non-compliance.

In cases where, despite preventive measures, a crime is committed within the organization, the company’s criminal liability may be reduced or even eliminated. Courts may exonerate the entity if it can be demonstrated that the Criminal Compliance program is adequate or reduce the penalty if the program, although existing, was insufficient to prevent the risk.

Implementation of the Criminal Compliance Plan

‍Implementing a Criminal Compliance program requires ongoing monitoring to identify emerging risks, periodically evaluate the program, and make necessary adjustments. Having a lawyer specialized in Criminal Compliance is essential to ensure effective oversight and continuous legal guidance.

Criminal Compliance is vital for any legal entity seeking to prevent crimes and mitigate criminal liability. Today, implementing a compliance program is crucial for companies wishing to avoid or minimize penalties in the event of a crime. Each organization must develop its program in a personalized manner, identifying specific risks inherent to its activities and providing the control body with adequate resources and autonomy. This ensures effective implementation, continuous monitoring, and a firm commitment by all members of the organization to corporate regulations.

Implementing a Criminal Compliance program is essential to safeguarding business continuity free from criminal sanctions. As experts in criminal law, Fukuro Legal advises and represents clients in relation to all types of criminal offenses.

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As expert lawyers in criminal law, Fukuro Legal advises and represents its clients in the framework of any type of crime.