Reform Of The Social Penal Code Takes Shape – Export Controls & Trade & Investment Sanctions

The Social Penal Code of 2010 has been modified many times
during the last decade, but after a major evaluation in 2017 by the
Advisory Council of Social Penal Law and a first draft legislative
project at the beginning of 2023, a legal proposal to reform the
code has been introduced in Parliament and is set to be approved
before the deadline of 8 May (when the parliament dissolves for the
elections of June). Below, we discuss the most important
changes:

1. The current 4 levels of sanctions are maintained. In earlier
proposals, a new 5^th sanction level was proposed for the
most severe crimes. However, this 5^th level has now
disappeared.

2. The fines for sanction level 3 are doubled and the maximum
fines for level 4 are increased. The sanction scheme will look as
follows (including the legal multiplication):

• Level 1: admin. fine: 80–800 euro




• Level 2: admin. fine: 200–2000 euro; penal fine:
  400–4000 euro




• Level 3: admin. fine: 800–8000 euro; penal fine:
  1600–16000 euro




• Level 4: admin. fine: 2400–28000 euro; penal fine:
  4800–56000 euro; prison sentence of 6 months to 6 years.

3. A new sanction is introduced: the prohibition to participate
in public tenders or to receive public concessions.

4. The term for repeat crimes will be increased from 1 year to 3
years. A conviction for a similar crime within 3 years will cause
the fines to double (but not the prison sentence).

5. The reform introduces two aggravating circumstances, which
the court needs to take into account when determining the sanction
(a.k.a., which should lead to a more severe sanction):

• When a crime punished with a sanction of level 4 is committed
  on purpose;




• In cases of obstruction of supervision of the social inspection
  services by means of threats or violence towards the person of the
  social inspector.

Source: Legislative proposal to supplement and amend the Social
Penal Code and several provisions of Social Penal Code, no. 55K3914.

Takeaways:

• The fines for the most severe crimes (levels 3 and 4) will be
  increased. There will be no new level 5.




• There will be a new sanction: a prohibition to participate in
  public tenders or to receive public concessions.




• The term for repeat crimes increases to 3 years.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.