Sapin 2 law: What obligations? Who is concerned?

The Sapin 2 law represents a major turning point in the fight against corruption in France. Since 2016, it has helped to strengthen transparency and integrity in economic practices. It establishes a more rigorous framework to prevent acts of corruption, influence peddling, and other financial crimes. Concretely, what does the Sapin 2 law require? What are the obligations arising from this? Who is concerned?

What is the Sapin 2 law?

The Sapin 2 law represents an ambitious response to the challenges related to corruption and fraud. It aims to build businesses as bulwarks against these practices. To do this, the regulation establishes a robust legal framework based on 8 fundamental pillars.

Focus on the 8 pillars of the Sapin 2 law

A code of conduct

A code of conduct gives the ethical principles and standards of behavior to be respected. This makes it possible to standardize anti-corruption measures. This code of conduct should be made available to all employees.

Internal alert procedure

In order to collect reports of suspicious behavior, an internal alert procedure must be put in place. This guarantees the confidentiality and protection of whistleblowers.

Corruption risk mapping

Mapping corruption risks makes it possible to identify potentially exposed elements.

Third-party risk assessment

Businesses need to assess the integrity of their business partners. In this way, they can put in place adequate verification procedures.

Accounting controls

Accounting controls make it possible to detect and prevent any form of corruption and embezzlement.

Training and awareness-raising on the Sapin 2 law

Training and awareness are needed to recognize and prevent illicit practices. They are especially necessary for employees who are most exposed to the risks of corruption.

Penalties

In case of non-compliance with the code of conduct, administrative and criminal sanctions are provided for. They ensure the effective implementation of the planned measures.

Internal assessment

Businesses should regularly assess the effectiveness of their anti-corruption measures and adjust them if necessary.

Who does the Sapin 2 law apply to?

The law sets out 2 specific criteria, which define the French companies concerned by the law.

• The workforce criterion: Only companies with more than 500 employees are concerned.
• And the turnover criterion: The consolidated turnover must exceed 100 million euros.

This obligation also extends to subsidiaries attached to any company that meets the above criteria.