face for acts of corruption Lana Sinichkina, Partner, Head of - PowerPoint PPT Presentation

Sanctions Ukrainian lawyers face for acts of corruption Lana Sinichkina, Partner, Head of Anti-corruption Compliance and Business Ethics Practice Kyiv | 201 5

Criminal sanctions A lawyer bribes tax official for issuing certificate on absence of violations following audit of lawyer’s client 2

Criminal sanctions Bribing a public official (369 CC) Prohibits offering , promising or provision of a bribe by any person to a public official for the benefit of such person or any third party Sanctions: - Fine from UAH 8 500 to 17 000 - Seizure of property (including illegal) - Arrest for up to 6 months - Custodial restraint from 2 to 4 years - Imprisonment from 2 to 10 years 3

Criminal sanctions A lawyer presents expensive gift to a customs broker for influencing customs official to facilitate customs clearance 4

Criminal sanctions Trading in influence (369-2 CC) Prohibits offering , promising or provision of a bribe by any person to a person that promises influencing a public official’s decision Sanctions: - Fine from UAH 3 400 to 8 500 - Seizure of including property - Custodial restraint from 2 to 5 years - Imprisonment for up to 2 years 5

Criminal sanctions A law firm representative offers kickback to a potential client for winning in a legal services tender 6

Criminal sanctions Bribing an officer of a private company (commercial bribery) (368-3 CC) Prohibits offering, promising or providing a bribe by anyone to officers Sanctions: - Fine from UAH 2 550 to 12 750 and seizure of illegal property - Community service 100 to 200 hours - Custodial restraint for up to 4 years - Imprisonment for up to 4 years 7

Criminal sanctions A lawyer bribes an expert for adjusting his conclusion for the benefit of his client 8

Criminal sanctions Bribing a person providing public services (368-4 CC) Prohibits offering, promising or providing a bribe by anyone to auditor, expert, independent intermediary Sanctions: - Fine from UAH 2 550 to 12 750 - Seizure of illegal property - Community service from 100 to 200 hours - Custodial restraint for up to 4 years - Imprisonment for up to 4 years 9

Civil sanctions (including financial sanctions) void + compensation of damages to the state or third Could be parties invalidated If intentional- confiscation of all obtained under the contract 10

Disciplinary sanctions The Law on advocacy activities (art. 35) established following sanctions for attorneys : - Warning - Debarment from 1 month to 1 year - Deprivation of the right to practice advocacy What is planned? - Fine - Improvement of debarment procedure Grounds : - Repeated disciplinary offence, violations of legal ethics - Criminal offence 11

Reputational damage - Entering into registry of corruption offenders (+ debarment from PP) 12

Reputational damage 13

Reputational damage https://www.youtube.com/watch?v=_szJucVifkk&t=19 14

Reputational damage Moonlighting by public official violates anti-corruption laws Sanctions for officials: - Administrative liability: fine from UAH 850 to 2 125, seizure of income from side activity - Dismissal - Entering into register of corruption offenders Sanctions for attorneys - Debarment 15

Thank you for your attention! 16

Our contacts Head Office of Arzinger Key Contacts: Eurasia Business Center, 75 Zhylyanska St. Kyiv, 01032, Ukraine Timur Bondaryev, Managing Partner Теl .: +38 (044) 390-55-33 Timur.Bondaryev@arzinger.ua Fax: +38 (044) 390-55-40 Sergiy Shklyar, Dr. Jur., Founding Partner Sergiy.Shklyar@arzinger.ua West Ukrainian Branch of Arzinger Lana Sinichkina , Partner 6/1 Generala Chuprynky St. Lana.Sinichkina@arzinger.ua Lviv, 79013, Ukraine Tel.: +38 (032) 242-96-96 Fax: +38 (032) 242-96-95 South Ukrainian Branch of Arzinger Pokrovsky Business Center, 33 Zhukovskogo St. Оdessa , 65045, Ukraine Теl ./Fax: +38 (048) 711-74-74 mail@arzinger.ua www.arzinger.ua We are looking forward to our future cooperation! 17