France boosts anti-corruption extraterritoriality

Author: Tom Young | Published: 23 Nov 2016

France’s new anti-corruption law has been heralded as a small revolution in the battle against white collar crime. It also indicates a growth in French extraterritoriality to rival the US and UK’s treatment of corrupt practices.

On November 8 the French National Assembly adopted the so-called Sapin 2 law, which requires large French companies and groups to take measures to prevent and detect acts of corruption and influence peddling committed in France or abroad.

The law applies to companies with at least 500 employees, or belonging to a group of companies which has at least 500 employees and parent company headquarters in France; and having a turnover, or consolidated group turnover, of more than €100 million ($106 million). In-scope companies will be required to establish a code of conduct to prevent corruption. Failure to do so could lead to prosecution,...