OECD Anti-Corruption Network for Eastern Europe and Central Asia Foreign Bribery Offence and its Enforcement in Eastern Europe and Central Asia OECD Anti-Corruption Network for Eastern Europe and Central Asia Foreign Bribery Offence and its Enforcement in Eastern Europe and Central Asia About the OECD The OECD is a forum in which governments compare and exchange policy experiences, identify good practices in light of emerging challenges, and promote decisions and recommendations to produce better policies for better lives. The OECD’s mission is to promote policies that improve economic and social well-being of people around the world. Find out more at www.oecd.org. About the Anti-Corruption Network for Eastern Europe and Central Asia Established in 1998, the main objective of the Anti-Corruption Network for Eastern Europe and Central Asia (ACN) is to support its member countries in their efforts to prevent and fight corruption. It provides a regional forum for the promotion of anti-corruption activities, the exchange of information, elaboration of best practices and donor coordination via regional meetings and seminars, peer-learning programmes, and thematic projects. ACN also serves as the home for the Istanbul Anti-Corruption Action Plan. Find out more at www.oecd.org/corruption/acn/. About the thematic studies on criminalisation of corruption and law-enforcement in Eastern Europe and Central Asia The ACN Work Programme for 2013–2015 included a thematic cross-country study (review) on the criminalisation of corruption and effective law enforcement. The first topic selected for the thematic study was the liability of legal persons for corruption. This second thematic study concerns foreign bribery. The third study will be on international co-operation in corruption cases. The objectives of the studies are (1) to analyse the state of play in the relevant area, in order to identify common problems and best practices (in particular, by using case studies from selected countries) and to develop regional recommendations, and (2) to identify capacity-building and training needs for law enforcement authorities and the judiciary. This report is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. © OECD 2016 2 Foreword This cross-country report analyses the legislation on foreign bribery and its enforcement in Eastern Europe and Central Asia. While the report focuses on 25 countries participating in the Anti-Corruption Network for Eastern Europe and Central Asia (ACN), it also includes examples from OECD countries. The report is based on data provided by the ACN governments in the form of replies to questionnaires as well as additional desk research. It also reflects discussions and examples of good practices that were presented during the ACN meetings. The report was prepared in 2015. The purpose of this report is to review trends in introducing and enforcing foreign bribery offences, as well as to highlight national practices that may be promoted as good practice. It serves as a valuable reference point for legal reforms and reviews in this region, as well as for other parts of the world. The report has been prepared as a part of the OECD Anti-Corruption Network for Eastern Europe and Central Asia Work Programme for 2013–2015. The topic of this report is part of a cross-country study on law enforcement and criminalisation of corruption—one of three cross-country studies that are part of the 2013–2015 Work Programme. The two other cross-country studies deal with (i) prevention of corruption in the public sector and (ii) business integrity. 3 Table of Contents Acronyms ........................................................................................................................................................ 7 About the thematic study ................................................................................................................................. 8 Introduction ..................................................................................................................................................... 9 1 Scope of foreign bribery offence ............................................................................................................. 10 1.1 Active foreign bribery offence ......................................................................................................... 10 1.2 Passive foreign bribery offence ........................................................................................................ 12 1.3 Limitations of offence ...................................................................................................................... 13 2 Jurisdiction .............................................................................................................................................. 15 2.1 Territoriality ..................................................................................................................................... 15 2.2 Nationality ........................................................................................................................................ 15 2.3 Foreign nationals and stateless persons ............................................................................................ 16 2.4 Legal persons ................................................................................................................................... 16 2.5 Jurisdiction over foreign officials who accept bribes (passive bribery) ........................................... 18 3 Definition of “foreign official” ............................................................................................................... 19 3.1 Types of officials covered ................................................................................................................ 19 3.2 Autonomous definition..................................................................................................................... 20 4 Defences and exceptions ......................................................................................................................... 21 4.1 Facilitation payments ....................................................................................................................... 21 4.2 Solicitation and extortion ................................................................................................................. 21 4.3 Effective regret ................................................................................................................................. 22 5 Enforcement ............................................................................................................................................ 24 5.1 Enforcement institutions .................................................................................................................. 24 5.2 Prosecutorial discretion and national economic interest .................................................................. 26 5.3 Independence and autonomy ............................................................................................................ 27 5.4 Capacity and training ....................................................................................................................... 28 5.5 Statutes of limitations and procedural time limits ............................................................................ 30 5.6 Reporting and whistleblowing ......................................................................................................... 32 6 Sanctions and confiscation ...................................................................................................................... 37 6.1 Criminal penalties and administrative sanctions .............................................................................. 37 6.2 Confiscation ..................................................................................................................................... 38 6.3 Out of court settlements ................................................................................................................... 40 7 Statistics and cases .................................................................................................................................. 41 7.1 Completed foreign bribery case ....................................................................................................... 41 7.2 Investigations and on-going cases .................................................................................................... 41 8 Public awareness ..................................................................................................................................... 44 8.1 Public outreach generally ................................................................................................................. 44 8.2 Making information available to the public ..................................................................................... 45 8.3 Developing guidance, policies, procedures and controls for combating corruption ........................ 46 8.4 Training for public and