When co-operation pays off: a landmark corruption settlement coordinated by 3 countries
A French company was recently fined EUR 18.3 million in a large international corruption case as a result of strong cross-border relationships and institutional co-operation among law enforcement agencies from Ukraine, Estonia and France.
The agreement (known as Convention judiciaire d'intérêt public or CJIP), which the company entered into with the French National Financial Prosecutors Office (PNF), included a requirement to pay around EUR 3.37 million in compensation to Ukraine as a victim of a bribery offence. The company will also implement a three-year anti-corruption compliance programme under the supervision of the French Anti-Corruption Agency (AFA).
Although the investigation continues, charges have also been filed against several individuals in Estonia and Ukraine, with some entering plea agreements and compensating damage to the Ukrainian budget.
Joining forces and innovative approaches to break new ground
The case is a clear success story: significant fines, strong action against bribery, and the successful dismantling of a complex cross-border corruption scheme, thanks to effective co-operation and information sharing between authorities. It sets several important precedents and demonstrates the power of advanced international co-operation mechanisms.
1. Co-ordinated cross-border action
The swift outcome was made possible by co-operation among jurisdictions through a joint investigative team.
In 2021, Ukraine’s National Anti-Corruption Bureau (NABU) and Specialised Anti-Corruption Prosecutor’s Office (SAPO) launched an investigation into an alleged large-scale embezzlement by the former CEO of a Ukrainian state-owned enterprise. As the investigation unfolded, evidence led to actors in Estonia and France and uncovered elements of money laundering.
Once co-operation was established with Estonia and France, the OECD Global Law Enforcement Network against Transnational Bribery (GLEN) was used by Ukrainian authorities to facilitate connections with the PNF, accelerating the international investigation. All three jurisdictions joined forces in a joint investigation team (JIT), set up with Eurojust, while GLEN meetings provided a platform for informal consultations among JIT members. Ukrainian authorities also received expert support from the World Bank/UNODC Stolen Asset Recovery (StAR) Initiative.
This collaborative effort paid off: the strong evidence gathered through the JIT having convinced a French company to enter into a CJIP with the PNF.
2. Important compensation clause
The compensation to Ukraine as part of the CJIP is an important aspect of the agreement. The basis for the compensation clause is the loss in tax revenue incurred in Ukraine due to the corruption scheme. It differs from, and in fact complements, a conventional asset recovery mechanism applicable to instrumentalities or proceeds of a crime subject to confiscation.
Strategic use of plea agreements
Another innovative measure was the coordinated use of plea agreements, which significantly strengthened the international investigation. Individuals entering plea agreements in Ukraine assisted and shared valuable information for proceedings in the other participating countries, boosting the overall effectiveness of the cross-border case.
OECD platforms for law enforcement co-operation and peer learning
The case is a clear example of how opportunities offered by the OECD anti-corruption law enforcement networks benefit the global law enforcement community in the fight against corruption.
The networks, which include the Global Law Enforcement Network (GLEN), the Law Enforcement Officials (LEO) group of the OECD Working Group on Bribery in International Business Transactions (WGB) and regional networks in Asia-Pacific, Africa, Eastern Europe and Central Asia and in Latin America and the Caribbean, regularly bring together investigators and prosecutors handling transnational corruption cases. The established process for vetting nominated delegates ensures that only practitioners directly involved in handling cases participate in these meetings.
A recent priority for the GLEN has been to offer its participants more co-operation opportunities and to facilitate tangible progress in ongoing investigations. Over the past three years, the network has been instrumental in:
- assisting countries launch nine parallel investigations
- establishing seven joint investigative teams
- supporting many other cases through improved evidence gathering and co-ordination.
Beyond casework, the networks also present opportunities for peer learning and open exchanges of emerging law enforcement trends, best practices and new ideas, inspiring innovative approaches.
While the OECD acts as secretariat to the networks, these initiatives are first and foremost practitioner-driven. The achievements of the networks, including the case described here, reflect the strong commitment of the law enforcement community to breaking down barriers and building effective cross-border co-operative frameworks to tackle transnational corruption.
