The European Union is strengthening its anti-corruption measures with a new directive aimed at harmonising compliance practices and increasing corporate accountability across member states. Image generated by AI / OpenAI

The European Union is strengthening its anti-corruption measures with a new directive aimed at harmonising compliance practices and increasing corporate accountability across member states. Image generated by AI / OpenAI

Since May 2023, the proposal for a directive combating corruption has been sparking interest and expectations among professionals: potential impact on the compliance side, new minimum penalties, legal entities liabilities, etc. What stage have we reached in the legislative process? Temime offers updates of the issues and implications pertaining to this directive as of recently.

The Proposal for a Directive of the European Parliament and of the Council on combating corruption (COM/2023/234) came into being in May 2023.

It was prompted by the shortcomings of Directive 2017/1371 (the so-called "PIF"), which include insufficient transposition, inconsistent definitions of offences, the lack of liability of legal persons in some Member States and significant disparities in the penalties provided for and imposed.

On 24 September, the European Parliament Research Service (EPRS) published an updated note detailing the most recent developments.

As a reminder, the directive is intended to produce a significant impact on financial crime compliance in the public and private sectors, while reinforcing wider efforts to combat corruption.

Chronology of the stages in the legislative process for the anti-corruption directive (COM/2023/234): the trialogue in sight. Image: European Parliament.

Chronology of the stages in the legislative process for the anti-corruption directive (COM/2023/234): the trialogue in sight. Image: European Parliament.

At this stage, it is planned in particular:

– with regard to the waiver of immunity, the amendments proposed by the Parliament are likely to tighten up the conditions for maintaining immunity;

– the criminal liability of legal entities: this is one of the main updates especially since, it includes the characterisation of offences by omission, lack of supervision or control;

– the introduction of out-of-court settlements for companies is encouraged;

– penalties: at least a maximum penalty of 5 years' imprisonment for private corruption, embezzlement, influence peddling and abuse of office; at least 4 years' imprisonment for enrichment through corruption. For legal persons, the proposal provides for "criminal or non-criminal fines, the maximum amount of which should not be less than 5% of the total worldwide turnover of the legal person [...] during the financial year preceding the decision imposing the fine";

– as regards the rules of jurisdiction: extension of the jurisdiction of the court of the registered office of the company benefiting from the infringement. The proposal states that the jurisdiction of a State must not depend on a complaint or denunciation from the State where the offence was committed;

– with regard to the preventive aspect (compliance policy): to anticipate and avoid criminal liability by demonstrating adequate control and supervision, in particular by setting up "effective internal control, ethics awareness and compliance programmes, and preventive tools to prevent corruption before the offence is committed".

However, adoption does not yet seem imminent: the boycott of the Hungarian Presidency due to Orbán's trips to Moscow and Beijing is particularly aimed at the trialogue phase, which is precisely the next stage in the legislative process. It is therefore to be feared that this phase will not evolve before the beginning of 2025 at the earliest. A step back for a leap forward?

To find out more about the impact of this directive and to prepare for compliance, contact by e-mail at

This promotional article was written by Gwennhaëlle Barral, member of the Paris and Luxembourg Bars, in charge of Temime’s Luxembourg office, as part of Temime's membership with the Paperjam Club. If you would also like to join the Club, please contact us at .