With a bit of a delay, however, the logic that has been known to companies that have close business contacts (owned, are agents or are intermediaries) of companies from the USA or Great Britain has been coming to Slovenia with greater steps. The French parliament is currently debating a proposal for anti-corruption legislation, which summarizes the logic of the US FCPA (Foreign Corruption Practices Act) and the British UK Bribery Act. Due to the volume of investments and business cooperation between Slovenia and France, it is possible to predict that the adoption of the law in France will have a direct impact on many companies in Slovenia.

The current French law provides for the mandatory introduction of compliance programs in companies with more than 500 employees and more than 100 million annual revenues. A company that does not set up such a program will be fined. We know what a good compliance program means in a company and what impact this can have on business partners. Among other things, we can expect French companies to consistently carry out due diligence on their business partners. Also in Slovenia. We can expect that companies that are judged to be too risky in terms of corruption or other infringements will find it more difficult to get business with French companies or in France.

Given that the bill also provides for settlements with the supervisory body without admission of guilt or deferred prosecution and reduction of sanctions for those who admit and help prevent or detect a crime, the risk for all (co) participants will increase significantly. Especially given the fact that the bill opens up opportunities for the French authorities to prosecute corruption transnationally, ie for corruption offenses committed outside France. Following the example of the FCPA, which allows prosecution in the United States if a "US element" such as e.g. U.S. ownership or listing on a U.S. stock exchange.

It is quite certain that this legislation will guide French companies to establish an appropriate system of internal controls and risk management in the areas of corruption, trading in influence and the prevention of money laundering. It's about prevention. Let's imagine what this will mean for equity investments or the supply chain of French car manufacturers in Slovenia, where it will be necessary to take effective measures and ensure that our business is "clean". This can only be positive and is a welcome encouragement from the outside.

Now let's collect bets on when this kind of legislation will be adopted by Germany. Our largest foreign trade partner.

Rok Praprotnik

Link to the French law proposal: HERE.