Criminal Compliance

Criminal Compliance is a set of customized measures aimed at ensuring that legal entities comply with all applicable laws. This compliance program is implemented to protect organizations from potential criminal liabilities, particularly if an employee commits a crime during the course of their duties.

Having an effective Criminal Compliance program not only protects the company from legal sanctions but also enhances its reputation in the market and society, demonstrating a strong commitment to legality and best practices.
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‍Objectives of Criminal Compliance
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‍The primary objective of Criminal Compliance is to prevent the commission of crimes within an organization. By adopting specific measures, this plan ensures that the company complies with legal regulations, significantly reducing criminal risks.

Each company must develop a Criminal Compliance model tailored to its specific circumstances. This model requires all members, from management to employees, to adhere to the established policies. Rules and sanctions are communicated through documents and tools designed to ensure understanding and application at all levels.

Another key objective is the protection of the legal entity. If a member of the organization commits a crime, the existence of an effective Criminal Compliance program may exempt the entity from criminal liability, provided that it can be shown that the program meets legal requirements.

Criminal Compliance Plan‍
‍The development of a Criminal Compliance plan requires a thorough analysis of the company and its potential risks based on its activities. The adopted measures must be specific to prevent criminal actions and should include:
- Risk Identification: Identifying activities within the organization that could pose a potential criminal risk.
- Preventive Procedures: Establishing procedures to prevent these risks.
- Corporate Commitment: Setting a clear commitment to comply with the established measures.
- Designated Resources: Allocating the necessary resources for the creation and execution of the plan.
- Control Body: Designating an independent body with the authority to oversee the program’s compliance.
- Reporting Obligation: Including a provision requiring all members of the organization to report any violations of the program.
- Disciplinary Sanctions: Establishing sanctions for those who fail to comply with the Criminal Compliance rules.
- Monitoring Plan: Including a monitoring plan with the possibility of making necessary adjustments to maintain the program’s effectiveness.

Within an organization, common crimes that may be committed include money laundering, tax evasion, fraud, influence peddling, punishable insolvency, embezzlement, data security breaches, intellectual property crimes, and offenses against public finances, among other corporate crimes.

Legal entities without a Criminal Compliance plan may be held criminally liable if a crime occurs within their organization. Possible sanctions include heavy fines, loss of tax incentives, loss of subsidies and social security benefits, closure of premises, suspension of activities, or even the dissolution of the legal entity.

‍Common Crimes in Organizations
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Within an organization, common crimes that may be committed include money laundering, tax evasion, fraud, influence peddling, punishable insolvency, embezzlement, data security breaches, intellectual property crimes, and offenses against public finances, among other corporate crimes.

Legal entities without a Criminal Compliance plan may be held criminally liable if a crime occurs within their organization. Possible sanctions include heavy fines, loss of tax incentives, loss of subsidies and social security benefits, closure of premises, suspension of activities, or even the dissolution of the legal entity.

Purpose of Criminal Compliance

‍A Criminal Compliance Program allows organizations to identify and control risk factors that could lead to the commission of crimes. By implementing preventive measures, the likelihood of criminal acts occurring within the company is minimized.

If the Criminal Compliance program is correctly implemented, it is likely that the company will not become involved in criminal proceedings. Furthermore, good compliance facilitates internal organization and fosters a balanced work environment, where everyone is aware of corporate policies and the consequences of non-compliance.

In the event that, despite the measures, a crime is committed within the organization, the company’s criminal liability may be reduced or even nullified. The court may decide to exonerate the company if it can be demonstrated that the Criminal Compliance program is adequate or reduce the penalty if, despite the existence of a program, it was insufficient to prevent the risk.

‍Implementation of the Criminal Compliance Plan
‍Implementing a Criminal Compliance program requires constant monitoring to detect new risks, periodically assess the plan, and make necessary adjustments.

Having a lawyer specialized in Criminal Compliance is key to ensuring effective control and continuous advice. Criminal Compliance is essential for any legal entity wishing to prevent crimes and reduce its criminal liability. Today, having a compliance program is mandatory for companies seeking to exonerate or minimize penalties in case of a crime.

Each organization must develop its Criminal Compliance program in a personalized manner, identifying the specific risks of its activities and assigning resources and autonomy to the program’s control body. This ensures effective implementation, continuous monitoring, and a firm commitment from all members of the company to the corporate regulations.

Implementing a Criminal Compliance program is crucial for ensuring the continuity of the business without criminal sanctions.