Transcript Slide 1

“Package” of Anti-Corruption Laws enacted in compliance with the AntiCorruption Plan (approved by the Russian President on July 31, 2008):
• Federal Law “On Fighting Corruption” No. 273-FZ of December 25, 2008;
• Amendments to the Russian Civil Code;
• Amendments to the Russian Criminal Code;
• Amendments to the Russian Administrative Code;
• Amendments to other legislative acts.
Amendments to the Russian Civil Code:
- Prohibition of making gifts to Public Officials, if the value of the gift exceeds
3,000 Russian Rubles (about 100 USD) (art. 575.1);
- Exception made in respect of gifts received in the course of protocol
events, official business trips, or other official events. However, if the value of
the gift exceeds 3,000 Russian Rubles, such gift shall be recognized Federal,
Regional, or Municipal Property (art. 575.2).
Amendments to the Russian Criminal Code:
Sanctions are toughened, in particular:
- for Abuse of Powers by a person performing management functions in a
commercial, or other organization: the maximum term of imprisonment is
increased from 3 to 4 years (art. 201.1);
- for giving a “Commercial Bribe”: the maximum term of imprisonment is
increased from 2 to 3 years (art. 204.1);
- for receiving a “Commercial Bribe”: the maximum term of imprisonment is
increased from 3 to 7 years (art. 204.3).
Amendments to the Russian Administrative Code:
The Code was completed by Provisions on Liability for the following two
Administrative Offences:
•
Illicit Payment on behalf of a Legal Entity (art. 19.28)
Sanction – fine of up to the triple amount of the transferred money, or triple
price of the transferred property, or services, but in any case no less than
1,000,000 Russian Rubles (about 33,000 USD) with confiscation of the
unlawfully transferred valuables.
•
Unlawful Employment of a Public Official (ex-Public Official) (art. 19.29)
Sanction for legal entities – fine of up to 500,000 Russian Rubles (about
16,600 USD).
Definition of “Corruption” (under Federal Law “On Fighting Corruption”):
Corruption is
a) unlawful use by a private individual of his/her official capacity in contradiction
with the lawful interests of the Society and the State for the purpose of receiving
profit (which may be in the form of monetary funds, valuables, other property, or
services of financial nature, other property rights) either for himself/herself, or for
third persons;
b) unlawful granting by a private individual of profit in the way described in cl. (a)
above; or
c) performance of actions provided for in cl. (a), or cl. (b) above on behalf of, or in
the interests of a legal entity.
Corruption includes, without limitation:
• Misuse of Official Authority;
• Giving a Bribe;
•
Accepting a Bribe;
•
Abuse of Powers;
•
Corrupt Business Practices (giving or receiving a “Commercial Bribe”).
“Public Officials” may be defined as officers and employees of the federal or
regional state bodies belonging to the legislative, executive, or judicial branches
of power.
Public Officials are divided into:
• High-level Officials - officers holding posts that are directly established by the
Russian Constitution, or federal laws, or by the statutes, or laws of the Russian
regions (e.g. the Russian President, Prime-Minister, Federal Ministers, federal
judges, Prosecutor-General, Governors of Russian regions).
Particularity in the legal status of such Officials: due to the specific regulation of
their activities sometimes general provisions, requirements and restrictions
established in respect of Public Service are not applicable to them.
• Other Officials holding a Public Service post. The professional activity of such
Officials consists in ensuring the execution of powers of federal and regional state
bodies and also of the High-level Officials. Listed in the corresponding Registries.
Public Service consists of:
• Civil Service;
• Military Service;
• Law-enforcement Service.
o
Civil Service is divided into Federal Public Civil Service and Regional
Public Civil Service. Military Service and Law-enforcement Service
belong to the category of Federal Public Service.
o
Public Service vs. Municipal Service
Within 2 years after resignation from Public Service, prior approval by a
competent state Commission is required for the ex-Public Official to be hired
by a commercial or a non-commercial organization, previously managed or
controlled by such Public Official.
The Employer of a person, who has resigned from Public Service less than 2
years before being hired by such Employer, is obliged to inform the state
authorities on the conclusion of a Labor contract with such person within 10
days of the conclusion.
The Labor contract signed between an ex-Public Official and his/her new
Employer in violation of the above requirements shall be terminated.
Failure to comply with the restrictions related to engagement of a Public
Official (ex-Public Official) gives grounds for imposing an Administrative Fine
in the following amounts:
• on officers of the Employer: from 20,000 to 50,000 Russian Rubles
(approx. from 650 to 1,650 USD);
• on the Employer – private individual: from 20,000 to 50,000 Russian
Rubles (approx. from 650 to 1,650 USD);
• on the Employer – Legal entity: from 100,000 to 500,000 Russian
Rubles (approx. from 3,300 to 16,600 USD).
• Public and Municipal Authorities
• Legal Entities and Private Individuals
o In most cases only Disciplinary Liability is imposed on Public Officials for
failure to comply with the rules meant to prevent corruption or reveal it at an
early stage
(e.g. for failure to comply with the rules meant to prevent the “Conflict of
Interest”, or avoid negative consequences thereof; for non-provision, or
provision of misleading, or inaccurate information on the amount of profit,
property and financial obligations; failure to inform on attempts to corrupt;
failure to meet the restrictions on employment after resignation from Public
Service).
o Administrative liability (fines) for violation of anti-corruption rules is
provided for in a limited number of cases (Unlawful Remuneration on behalf
of a Legal Entity and Unlawful Employment of a Public Official (ex-Public
Official).
Mitigating factors: sincere repentance, voluntary informing of the authorities
on the committed violation, prevention of the negative consequences, etc.
o Criminal liability for major violations: bribery, commercial bribery, abuse of
powers, serious misuse of official authority, prohibited commercial activities.
Mitigating factors: acknowledgement of guilt, providing assistance to the
authorities in detection of the crime and of the accomplices, commitment of
the crime in the result of hard life circumstances, etc.
Exoneration from criminal liability for giving a bribe, or a commercial bribe in
the following cases: there was extortion in place, or if the person, who has
committed the crime, informs the competent authorities of the bribery.
- Account Chamber of the Russian Federation;
- Federal Security Service of the Russian Federation;
- Prosecutor’s Office;
- Ministry of Home Affairs;
- Ministry of Justice;
- Anti-corruption Council with the President of the Russian Federation;
- Courts.
• Anti-corruption expertise of legislative acts and bills: adoption of the
Federal Law No. 172-FZ dated July 17, 2009 and several Governmental
Regulations.
• Disclosure of information on the amount of profit, property and financial
obligations of Public Officials, their spouses and minor children.
• Commissions for fulfillment of requirements to professional behavior of
Civil Service Agents and for resolution of the Conflicts of Interest:
establishment and functioning.
•
Russian Anti-Corruption Legislation is primarily aimed at fighting
corruption in Russia, while the FCPA is meant to prevent corruption outside
the USA.
• The definition of a “Public Official” under Russian legislation is more
narrow than the definition of a “Foreign Official” under the FCPA.
Alina Schurova
Partner of
Georgiev & Partners Law Firm
40/2, bld. 3, Prechistenka Str.,
Moscow, 119034, Russia
+7 495 787 72 52
+ 7 499 245 70 40
[email protected]