Anti-corruption In Luxembourg

1. Bribery in the home (private to public)

1.1 The Legal Environment

The legal framework relating to bribery is set out in Articles 240 et seq. of the Luxembourg Criminal Code.

1.2 What does bribery mean?

Public officials, as well as private persons or legal entities attempting to corrupt a public officer, can be charged with this crime.

Bribery is defined as the act of offering, promising, giving, or granting benefits in order to obtain rewards, employment, or business from a public authority or public administration, whether to accomplish or not to accomplish an act linked to a public function, duties, mission, or mandate or facilitated by such function, duties, mission, or mandate, or to abuse a true.

Criminal culpability exists for both natural and legal persons. When a natural person’s body or one or more of its legal or de facto managers conduct a criminal offense in its name or in its benefit, the legal person may be held accountable in addition to the criminal responsibility of the individuals who committed the crime. A fine of up to EUR 750,000 can be imposed on a legal person. However, for specific offenses like money laundering or bribery (public or private), the amount might be increased by five times.

1.3 What does it mean to be a public official?

Any natural person who performs public functions, obligations, missions, or mandates is referred to as a “public official.” Civil servants, judges, members of parliament, workers of public entities (who are not civil servants), and workers of public corporations or corporations with public concessions are all included in this definition.

1.4 Bribing’s Consequences

(a) For the natural persons participating in the bribery

Individuals who bribe public authorities face the same penalties as those who bribe public authorities, according to the Luxembourg Criminal Code. The following are the penalties:
Between five and ten years in prison
Fines ranging from EUR 500 to EUR 187,500
Deprivation of certain political rights or the ability to perform public responsibilities (for life, under specific conditions).
For a period of five to ten years, certain civil rights are taken away.

(a) For the legal entities involved

A fine of up to EUR 3.75 million might be imposed.
Exclusion from all open bids
Dissolution of the legal person is possible under specific circumstances.

1.5 Contributions from politics

The statute of December 21, 2007, governs contributions to political parties. Contributions to political parties are permitted in general as long as they are not anonymous and are not given by legal people, charities, associations, or other non-legal entities. Any donation of more than EUR 250 must be recorded in the annual records of the political party receiving it.

1.6 Hospitality expenses are subject to a limit (gifts, travel, meals, entertainment, among others)

The Criminal Code of Luxembourg does not impose any quantitative or qualitative restrictions on such expenditures. The determination of whether or not anything qualifies as bribery must be made on a case-by-case basis.

Members of the Luxembourg government can accept gifts and offers of hospitality from persons, private entities, or public entities active in a competitive sector if the approximate value does not exceed EUR 150 and the gifts and offers are consistent with the general rules of courtesy and are not likely to influence them, according to the applicable code of conduct.

When representing the State Council, the State Council’s code of conduct prohibits accepting any gift or hospitality with an approximate value of more than EUR 150.

2. Bribery in the home (private to private)

2.1 The Legal Environment

The legal framework relating to private bribery is set out in Articles 310 et seq. of the Luxembourg Criminal Code.

2.2 What is bribery in the private sector?

Bribery is broadly defined as proposing to a person who is a director, manager, or has representative powers on behalf of a legal or natural person, or by the fact of such director, manager, or representative, of soliciting or accepting, directly or through another person, an offer, promise, or advantage of any kind, for himself or for a third person, in order to t

2.3 Consequences of private bribery

(a) For the people who are involved

Between one month and five years in prison
Fines ranging from EUR 251 to EUR 30,000 Loss of some political rights or the ability to exercise public power
For a period of five to ten years, certain civil rights are taken away.

(b) Fines of up to EUR 300,000 for the legal entities involved

Exclusion from all open bids
Dissolution of the legal person is possible under specific circumstances.

2.4 Hospitality expenses are subject to a limit (gifts, travel, meals, entertainment, among others)

3. Foreign public officials’ corruption

3.1 The Legal Environment

The foundation for bribery of foreign public officials is laid forth in Article 252 of the Luxembourg Criminal Code.

3.2 Definition of foreign public officials’ corruption

Foreign public officials are subject to the same legal provisions as Luxembourg public officials.

3.3 Explanation of the term “foreign public official”

Civil servants of a foreign state; foreign judges or arbitral judges; European Union judicial or administrative personnel.

3.4 Consequences of foreign public officials’ corruption (a) For the natural people involved

Individuals who bribe public authorities face the same penalties as those who bribe public authorities, according to the Luxembourg Criminal Code. The following are the penalties:

Between five and ten years in prison
Fines ranging from EUR 500 to EUR 187,500
Deprivation of certain political rights or the ability to perform public responsibilities (for life, under specific conditions).
Between five and ten years, certain civil rights are revoked.