Answer ... Yes. Article 22 of the Sapin II Act introduced the settlement agreement into Article 41-1-2 of the French Criminal Procedure Code. Although the settlement agreement was inspired by the deferred prosecution agreements that have been employed in the United States and the United Kingdom, there are several key differences in this regard.
The Agence française anticorruption (AFA) and the Financial Prosecution Office (PNF) recently issued guidelines on the implementation of the settlement agreement.
The settlement agreement procedure authorises the public prosecutor to offer to public or private legal persons who have been accused of offences such as corruption, influence peddling and tax fraud, as well as related offences, regardless of their nationality, turnover or number of employees, to enter into an agreement whose execution will have the effect of extinguishing the public action.
The settlement agreement does not protect the legal representatives of a company, who remain accountable as individuals. The settlement agreement may impose one or more of the following obligations on the legal entity:
- payment of a ‘public interest’ fine, the amount of which shall be in proportion to the benefits derived from the violations (within the limit of 30% of the average annual turnover, calculated on the basis of the last three annual turnover figures known at the time of the findings of the violations);
- implementation of a compulsory compliance programme for a maximum of three years, under the AFA’s supervision. In these cases, the costs incurred by the AFA in carrying out the legal, financial, tax and accounting review necessary for its audit shall be borne by the legal entity, up to a cap stated in the agreement; and
- compensation for damages caused by the offence to any known victims.
After negotiation of its terms between the public prosecutor and the legal entity, the settlement agreement must be validated by a judge (the president of the first-instance court).
The AFA will supervise the execution of the anti-corruption programme required under the settlement agreement. Within the course of its supervision, the AFA “must report to the public prosecutor, at his or her request and at least once per year, on the implementation of the programme”, and “will report any difficulties and will also submit a report when the time limit for execution of the measure lapses”. In case of breach of the settlement agreement, the public prosecutor is authorised to reopen the case.
The first settlement agreement was proposed by the PNF to HSBC Private Bank Suisse SA in 2017, together with a public interest fine of €300 million. Four settlement agreements were signed in the first half of 2018 and one in the first half of 2019, as set out in the following table.
Date |
Company |
Offence |
Fine |
Others |
June 2019 |
CARMIGNAC GESTION |
Tax fraud |
€30 million |
- Payment of the reassessed taxes (€11,143,832 and tax penalties)
|
May 2018 |
SOCIETE GENERALE SA |
Bribery of public agents |
€250,150,755 |
- Compulsory compliance programme
|
May 2018 |
POUJAUD SAS |
Bribery, misuse of company assets |
€420,000 |
- Compulsory compliance programme
- Compensation for damages: €30,000
|
February 2018 |
SET ENVIRONNEMENT SAS |
Bribery of public agents |
€800,000 |
- Compulsory compliance programme
- Compensation for damages: €30,000
|
February 2018 |
KAEFFER WANNER SAS |
Bribery of public agents |
€2,710,000 |
- Compulsory compliance programme
- Compensation for damages: €30,000
|
November 2017 |
HSBC PRIVATE BANK SUISSE SA |
Illicit banking solicitation, money laundering, tax fraud |
€157,975,422 |
- Compensation for damages: €142,024,578
|
One procedural route to avoid a trial is for the company to opt for a guilty plea (‘Comparution sur Reconnaissance Préalable de Culpabilité’). This will be proposed by the public prosecutor or requested by the offender and is subject to validation by the president of the first-instance court.