Your security in Criminal Law on Corruption
An overview for companies and managers in particular
Corruption is one of the most serious offenses in Commercial Criminal Law and affects not only companies, but also public institutions, the medical sector and society as a whole.
What is Criminal Law on Corruption?
Corruption is generally understood as the offer, acceptance or procurement of advantages in a professional, public or healthcare context in order to influence an action or omission. It mainly refers to cases in which business or treatment decisions are influenced by unlawful payments or benefits.
The most common criminal offenses under Criminal Law on Corruption include:
Consequences of allegations of Corruption
Corruption has far-reaching consequences for companies and individuals. First of all, there is the threat of Criminal Sanctions, i.e. companies or individuals involved in corruption offenses must reckon with high fines, financial penalties and prison sentences. In addition, confiscation is ordered by law, meaning that financial benefits are confiscated. Furthermore, aggrieved parties – such as competitors or public institutions – have considerable claims for damages if they have been disadvantaged by corrupt actions. The sanction and the high-profile criminal proceedings are accompanied by an immense loss of reputation, which can have a long-term impact on customer relationships, business partners and the internal corporate culture.
Allegations of corruption must be taken seriously, but not every alleged act of corruption must automatically lead to a criminal conviction. There is often a lack of a verifiable agreement between the persons about the connection between the benefit and the act, which is intrinsic to corruption.
It is crucial for companies to take measures to prevent corruption in order not only to avoid criminal prosecution, but also to maintain their integrity and competitiveness. Examples of this include
- the implementation of a compliance management system,
- the training and sensitization of employees,
- the introduction of internal control mechanisms and
- the implementation of a whistleblower reporting office.
Investigations into allegations of corruption regularly also cover tax risks if the corruption expenses have been recorded as costs in the accounts. However, as these are subject to a ban on deductions ($ 4 (5) no. 10 EStG), there is also a risk of Criminal Tax Investigations. This also has an impact on the question of the historical scope of the investigations, as tax evasion on a large scale is subject to a limitation period of 15 years. This limitation period must also be taken into account when investigating corruption, which is particularly important when investigating such allegations internally.