Anatoly Petrykin. Anti-bribery in Russia 07.06.2013

Combating corruption in Russia: national legislation and practice

Anatoly Petrykin, Manager, Ernst & Young 7 June 2013

Общие вопросы Status of fight against corruption

Страница 2

The main corruption warriors

Mythili Raman

Acting Assistant

Attorney General

for the Criminal

Division, US DOJ

David Green

Director of Serious

Fraud Office, UK

Alexander Bastrykin

Head of the

Investigative

Committee of the

Russian Federation

Слайд 3

The Corruption Perceptions Index 2012

Source: «Corruption Perceptions Index 2012», Transparency International, 2012.

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The most dangerous types of fraud

Unfair competition

The absence of corporate culture

Information Security

Embezzlement by employees

Corruption of regulators

Embezzlement of the top management

Commercial corruption

Source: Survey of business security risks in Russian companies, Russian branch of the ACFE, 2011, Moscow

Attitude to business ethics in Russia

Yes Do not know No

A good reputation acquired

due to ethical business practices

is a competitive advantage

Source: European research on the management of fraud risk, Ernst & Young, 2011

The results of VTsIOM survey

results of the survey, 2012

results of the survey, 2004

Source: The initiative of Russian opinion of VTsIOM survey, in November 2012, № 2180.

The results of combat

corruption are becoming

more visible to society

Corruption can be

defeated

Corruption

is invincible

Ready to report the

facts of corruption

Общие вопросы The Russian anti-corruption legislation

Страница 8

Anti-corruption legislation of the Russian Federation

► The Federal Law of 25.12.2008 № 273-FZ On Combating Corruption

► The Criminal Code of the Russian Federation

► The Code of Administrative Violations of the Russian Federation

► Presidential Decree of 19.05.2008 № 815 On measures to combat

corruption

► Government Decree of 26 February 2010 № 96 On anti-corruption

expertise of legal acts and draft normative legal acts

► The National Anti-Corruption Plan for 2012-2013. (Approved by the

Decree of the President of the Russian Federation of 13.03.2012 №

297)

The Russian anti-corruption legislation (2)

The Criminal Code prohibits:

- bribing for government officials and soliciting bribe to

government officials

- commercial bribery (e.g, in the form of so-called

"kickbacks")

- intermediation at taking bribes

-


The Civil Code prohibits the giving of gifts worth more than

RUR3,000 to:

- persons holding government and municipal positions

- government and municipal employees

- employees of the Russian Bank, due to their official

position or performance of official duties

- in the relationship between commercial organizations


The civil service legislation prohibits public servants to:

- receive compensation in connection with the

performance of official duties

- employment of any paid activities, except as required by

their official capacity

- employment by enterprise activity

- travel to business trips abroad at the expense of others

persons

Bribing

Article 291 of the Criminal Code: Giving a bribe

1. Official bribery personally or through an agent:

► penalty of up to 30th amount of the bribe or imprisonment for a term to 2 years with

a penalty of 10th amount of the bribe

2. Giving a bribe to a public official for committing an obviously illegal

action (inaction)

► penalty of up to 60th amount of the bribe or imprisonment for up to 8 years with a

penalty of 30th amount of the bribe.

Note:

A person who has given a bribe shall be exempt from criminal liability if there has

been a bribe by the officer or the person voluntarily reported to a body with the

right to bring a criminal case for bribery.

Receiving a bribe

Article 290 of the Criminal Code: Receiving a bribe by an official

1. If such actions are included in the official authority:

► penalty of up to 50th amount of the bribe, with disqualification to hold certain positions for

up to three years, or imprisonment for a term to 3 years with a penalty of 20th amount

of the bribe.

2. For illegal actions:

► penalty of up to 70th amount of the bribe with disqualification to hold certain positions for

up to three years, or imprisonment for a term of 3 to 7 years with a penalty of 40th

amount of the bribe.

3. The same action (Part 1 or 2) committed by civil servants:

► penalty of up to 80th amount of the bribe, with disqualification to hold certain positions

activities for up to 3 years, or imprisonment for a term of 5 to 10 years with a penalty of

50th amount of the bribe.

4. The same action (Part 1, 2, or 3) committed by group of persons:

► penalty of up to 90th amount of the bribe or imprisonment for a term of 7 to 12 years,

with disqualification to hold certain positions for up to 3 years and with a penalty of 60th

amount of the bribe.

Intermediation

Article 291.1 of the Criminal Code: Intermediation in bribery

► penalty of up to 100th amount of the bribe with disqualification to hold certain

positions or engage in certain activities for a term up to 3 years, or

imprisonment for a term of 5 years with a penalty of 20th amount of the

bribe

Latest amendments to the Russian anti-corruption legislation

In 2011 – 2013 amendments to the anti-corruption legislation came into

force :

► a new type of punishment for corruption - a fine is equal to bribes

► a new type of recipient of the bribe - Official of a public

international organization

► new offense - intermediary at taking bribes, the transfer of bribes on

behalf of the briber or recipient of the bribe, and also contribution in

reaching an agreement and taking bribes

► a new way of combating corruption for legal entities – an

overseas investigation conducted by Russian authorities

► a new legislative requirement – every company must have

corporate compliance system

► no gifts and money – for HCPs and pharmacy employees

Questions?

Contacts

Andrey Novikov, Partner

Fraud investigation and dispute services

Ernst & Young CIS B.V.

+7 (495) 648 9618

Email: [email protected]

Anatoly Petrykin, Manager



+7 (495) 664 7843


Anatoly Anatolievich Kilyachkov, Manager



+7 (495) 755 9700


The content of the presentation cannot be applied as legal counselling as this

will always be subject to actual and specific knowledge of the client’s situation.

Anatoly Petrykin. Anti-bribery in Russia 07.06.2013

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