The European Union on Tuesday adopted a new anti-corruption directive that creates bloc-wide minimum rules on corruption offenses, penalties, prevention measures, and enforcement, replacing a 2003 law on private-sector corruption and a 1997 convention covering EU and member-state officials, the Council of the EU said. 

The new law harmonizes how key offenses are defined across member states, covering bribery in the public and private sectors, misappropriation, trading in influence, obstruction of justice, enrichment from corruption offenses, concealment, and certain serious violations involving the unlawful exercise of public functions, according to the Council announcement and the directive text. 

Under the directive, member states must ensure maximum prison terms of at least five years for public-sector bribery when the official act breaches duties, at least four years for misappropriation, enrichment and concealment offenses, and at least three years for other covered bribery and trading-in-influence offenses, the text shows. 

Companies found liable will face criminal or non-criminal fines of at least 5 percent of their total worldwide turnover or €40 million for the most serious offenses, and at least 3 percent of turnover or €24 million for other covered offenses. The directive sets out possible sanctions, including withdrawal of permits, judicial supervision, exclusion from public funding and tenders, and closure of establishments used to commit the offense. 

The directive also requires member states to put in place anti-corruption bodies or organizational units for prevention and repression, provide specialized training for national officials, and make available effective investigative tools.

Member states will have to adopt and publish national anti-corruption strategies, carry out periodic assessments of sectors and occupations most at risk, and establish such preventive measures as conflict-of-interest rules, asset declarations, transparency measures, and awareness campaigns, according to the directive. The law also extends protections for whistleblowers reporting corruption offenses under the EU whistleblower framework and requires annual publication of corruption-related statistics where available.

The Council said the directive updates the EU framework in line with international standards, including the United Nations Convention Against Corruption.

The directive will enter into force 20 days after publication in the Official Journal of the European Union. Member states will have 24 months to transpose the rules into national law, except for provisions on risk assessments and national strategies, which must be implemented within 36 months.

Read more from the Council here