The law no.2016-1691 of 9 December 2016, know as Sapin 2 law, is a law relating to the modernization of economic life and the fight against corruption.
How can you comply with this law ?
You have to follow 8 procedures to be in good standing with Sapin 2 law :
- To establish and adopt a code of conduct defining and illustrating the different type of behaviour to be prohibited as being likely to characterize acts of corruption or influence peddling. This code of conduct is integrated into the company’s internal rules and is the subject of the consultation procedure for employee representatives provided by the article L.1321-4 of the Labour Code ;
- The establishment of an internal alert mechanism is intended to allow the collection of reports from employees relating to the existence of conducts or situations constrained by the company’s code of conduct ;
- Mapping risks in the form of regularly updated documentation designed to identify, analyse and prioritise the risks of the company’s exposure to external solicitations for the purpose of corruption, depending in particular on the sectors of activity and geographical areas in which the company operates ;
- Carry out procedures for assessing the situation of clients, as well as of first-tier and intermediary suppliers with regard to risk mapping ;
- Perform accounting, external or internal control procedures designed to ensure that books, records and account are not used to mask corruption or influence peddling. These controls may be carried out either by the company’s own accounting and financial control services or by having recourse to an external auditor when carrying out the audits for the certification of accounts provided for in Article L. 823-9 of the French Commercial Code ;
- Implement an in-house training programme for managers and staff most exposed to the risks of corruption and influence peddling ;
- Establish a disciplinary regime that sanctions the employees of the company’s code of conduct ;
- Monitor and evaluate the implementation of measures internally.
What do you risk in case of non-compliance ?
Have a look at the following article on sanctions you may incur in case of default.
