FRANCE Law and Practice Contributed by: Christophe Ingrain, Tristan Gautier and Benoît Martinez, Darrois Villey Maillot & Brochier
In addition to imprisonment and financial sanctions, natural persons and legal entities face additional sanc - tions which must be taken into account while assess - ing their criminal exposure (eg, debarment, seizure of assets, etc). Aggravating and Mitigating Circumstances The statutory maximum penalty may be increased where aggravating circumstances are established or in cases of recidivism, in particular: • Aggravating circumstances are defined in each substantive offence provision, with the legisla - ture specifying the level of increase for each. For example, simple theft carries a maximum penalty of three years’ imprisonment and a EUR45,000 fine, but it may extend to a maximum of 15 years’ imprisonment and a EUR150,000 fine if the offence results in permanent mutilation or disability. • Recidivism leads to harsher penalties for repeat offending. A second offence committed in a state of legal recidivism increases the maximum applica - ble sentence for the subsequent offence. By con - trast, reiteration, meaning the commission of a new offence after a final conviction for another offence, results in a simple accumulation of penalties. The statutory maximum may also be reduced in cer - tain cases, such as where the offender has self-report - ed the offence. Sentencing in the Context of Plea Agreements French criminal law allows for negotiated procedures: • A deferred prosecution agreement is available for certain offences (CJIP) such as corruption, influ - ence peddling or laundering of tax fraud. Under this mechanism, a company may avoid prosecution by agreeing to pay a public interest fine, implement a compliance programme under the supervision of the French Anti-Corruption Agency (AFA), and/or compensate victims. The fine is capped at 30% of the group of companies’ average annual turnover over the previous three years. The National Finan - cial Prosecutor’s Office ( Parquet National Financier PNF) has enacted Guidelines on the implementa - tion of the CJIP last dated 16 January 2023 which
provide guidance on financial sanctions that could be imposed under this framework ( Guidelines ). • Under certain conditions, a guilty plea procedure is available for individuals and legal entities in cases where the prosecution proposes a sentence that is then validated by a judge ( Comparution sur recon- naissance préalable de culpabilité CRPC). General principles governing sentencing in French criminal law apply to guilty pleas. In both frameworks, co-operation, disclosure, reme - diation, and adoption of compliance measures are factors that are supposed to mitigate penalties. 1.7 Damages and Compensation Victims of white-collar offences may claim compensa - tion for their loss. The French system is characterised by the principle of action civile, which enables victims to seek compensation directly before criminal courts Victims may initiate or join criminal proceedings as civil parties in criminal proceedings. This allows them to seek damages alongside the prosecution of the offence, while being able to rely on evidence collected during the investigation. Jurisdiction Victims may join the criminal proceedings as a civil party before the criminal court that has jurisdiction over the offence (Articles 2 et seq., CPP). Alternatively, victims may pursue their claim before the civil courts. However, if a parallel criminal proceed - ing is ongoing, civil courts generally stay proceedings until a final judgment on criminal liability is rendered, in order to avoid contradictory rulings. Collective Redress Since 2014, a limited collective redress mechanism ( action de groupe ) exists. Initially confined to con - sumer and competition law, it has gradually been extended to discrimination, health and environmental matters, but it remains unavailable for most white- collar offences. In practice, victims of economic and financial crime must either pursue compensation indi - vidually or rely on professional bodies (such as trade (Article 2, CPP). Legal Grounds
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