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Czech Republic

Anti-Bribery and Corruption Laws in Czech Republic

Czech Republic
Source of lawAct No. 40 / 2009 Coll., Czech Criminal Code; Act No. 418 / 2011 Coll., on Criminal Liability of Legal Entities 
Offence 

Major offences 

  • acceptance of a bribe 
  • active  bribery 
  • indirect bribery 

The Criminal Code defines a bribe as “offering, giving, requesting or accepting (directly or indirectly) in the public or private sector, an unauthorised benefit consisting in a direct material enrichment or other advantage which is obtained or is intended to be obtained by the bribed person or another person with his / her agreement, and to which s / he has no right.”  1 s331 – 334 of the Criminal Code.  

Other special offences apply in relation to public tenders and public auctions. 

The bribe  
Is there a presumption that any advantage was given/received corruptly? No
Would facilitation payments be caught? Yes 
Would corporate hospitality be caught? Yes  2 Would have to be examined on a case by case basis. Can be prosecuted under certain circumstances.  
Is there any de minimis? No 
Does the bribe have to be monetary? No
Public officials  
Does the offence only apply to bribing public officials? No
Acts performed outside Czech Republic  
Can bribery performed outside Czech Republic be caught? Yes  3 If: (a) an offence is committed abroad by Czech or a person without Czech citizenship but permanently resident in the Czech Republic (s6 of the Criminal Code); or (b) a person (regardless of his/her citizenship) commits an offence abroad with the intention to have an impact in the Czech Republic (s4 of the Criminal Code).  
Does the act also need to be illegal in the foreign country of performance? Yes  4 If an offence is committed abroad by a foreigner or a person without Czech citizenship and not permanently resident (domiciled) in the Czech Republic and this person was caught in the Czech Republic and was not extradited for criminal proceedings in a foreign country (s8 of the Criminal Code).  
Who can be liable  
Czech national? Yes  
Czech company? Yes  5  However, the Czech Republic and self-governing territorial units in the exercise of public power are excluded from criminal liability (s6 of the Act on Criminal Liability of Legal Entities).
Czech partnership (including limited liability partnership)? Yes  
Director of Czech company? Yes  
Czech company if the bribe is committed abroad by its foreign subsidiary? Yes  6 The company would be liable only if it would actually have benefited from the conduct of its foreign subsidiary or if the company would be an accessory to the crime of its subsidiary.  
Foreign subsidiary of a Czech company if the bribe is committed abroad? Yes  7  If the crime is committed for the benefit of a Czech company (s4 of the Act on Criminal Liability of Legal Entities).
Foreign national / company / partnership if the bribe is committed in Czech Republic? Yes  8  If a foreign company / partnership has its branch or subsidiary in the Czech Republic, or it does business in the Czech Republic or it has its assets in the Czech Republic (s2 of the Act on Criminal Liability of Legal Entities).
Foreign national domiciled or “ordinarily resident” in Czech Republic if the bribe is committed outside Czech Republic? Yes  9 If: (a) a foreign national is domiciled (s6 of the Criminal Code); or (b) a foreign national is “ordinarily resident” in the Czech Republic (please see footnote no. 4).  
Foreign company / partnership if the bribe is committed abroad? Yes  10  If the crime is committed for the benefit of a Czech company (s4 of the Act on Criminal Liability of Legal Entities).
Penalties  
Penalties include: 

Individuals 

  • Imprisonment for up to 12 years, forfeiture of property, protective measures, (i.e. confiscation of an item/property (in part or whole)) 11 Can be imposed on third parties in addition to the offender.  monetary penalties up to CZK 36.5m (approx. EUR 1.35m), house arrest, community service, prohibition of entry to sporting, cultural and other social events, deportation, prohibition of residence and/or prohibition of keeping and breeding animals 

Companies 

  • Monetary penalty up to CZK 1.46bn (approx. EUR 6054m), forfeiture of property, forfeiture of a possessed item, protective measures (i.e. confiscation of an item/property (in part or whole)) 12 Can be imposed on third parties in addition to the offender. publication of judgment, punishment by disqualification  from  participating  in public tenders, applying for subsidy and grant programmes and/or prohibition of keeping and breeding animals; if held liable, the company may be dissolved (in extreme cases) 
Defences  
Are there any defences available? A legal entity may escape criminal liability if it can show it has exerted all efforts that could be justifiably expected from it to prevent the commission of further offences (e.g. a suitable and effective internal compliance programme is set up, internal regulations and policies are  adopted, educational events take place etc.).