11:44 27.05.2013

Parliament introduces quasi-criminal punishment for companies

2 min read

The Ukrainian parliament, in adopting five laws to execute the action plan on the liberalization of the visa regime for Ukraine by the European Union, has introduced quasi-criminal punishment for economic entities: the application of administrative sanctions (fines, seizures of property and liquidation), but under the rules of criminal proceedings.

A total of 301 lawmakers from all factions, apart from the Communists, supported draft law No. 2990, an Interfax-Ukraine correspondent has reported.

"The guarantees protecting economic entities in criminal proceedings are greater. This concerns the obligatory attraction of a representative of the economic entity, the provision of all evidence in cases, more justifiable hearing procedures and the possibility of challenging the petitioners' actions in a timely manner," said the profile parliamentary committee that approved the draft law for second reading.

The committee also said that the possibility of applying criminal penalties to economic entities is registered by crimes linked to active bribery, abuse of office, money laundering and terrorism.

"The liquidation of the company and seizure of its property will be applied only if acts of terrorism are committed on behalf of the company, while the highest penalty applied to a corporation will be a fine, the level of which will be set depending on the gravity of the crime committed by an individual," the committee said.

The committee added that the law introduces a clear notion of an "empowered person of the company" and stipulates signs of committing crimes in the interest of economic entities.

The document sets a procedure for proceedings against companies, which will be carried out simultaneously with criminal proceedings against individuals who committed crimes on behalf of the company and in its interests.

The law amends the Criminal Code of Ukraine, Criminal Procedural Code of Ukraine and laws on principles of fighting and preventing corruption and on protecting persons who take part in criminal proceedings.

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