Navigating the Changes: The New Penal Code and Business Leaders
*Insights and Tips for Safe Sailing*
The legal landscape is constantly changing, and recent legislative changes have significant implications for companies and their leaders.
On Feb. 22, 2024, the new Criminal Code was passed by the House of Representatives, making a series of crucial changes that affect the criminal responsibility of companies and their leaders.
In this blog, we share insights on the changes, risk management tips and a look at some other notable innovations.
**Increased Risks: Financial and Legal Implications**
One of the most striking aspects of the new Criminal Code is the introduction of the monetary penalty, which gives judges the power to more severely punish wealthy businesses and individuals.
This penalty can be up to three times the profits made or expected to be made from the crime, in addition to existing fines and forfeitures.
This places a significant financial burden on businesses and their leaders.
Moreover, the explicit inclusion of participation by omission creates new risks for directors and executives.
Passivity in the case of crimes within the organization can now be considered complicity, resulting in potentially serious legal consequences.
**Alternative Punishments and Future Developments**
In addition to fines, the new Criminal Code introduces alternative penalties for businesses, such as the obligation to provide services for the benefit of the community and probationary penalties.
For directors and executives, the professional ban is a new additional penalty, which can restrict professional activities for a certain period of time.
It is important to keep abreast of further developments and interpretations of the new Criminal Code, as they will affect its practical application.
**Subdivision into levels**
The new criminal code divides crimes into 8 levels as follows:
The new Penal Code’s 8 levels of punishment
| Penalty Level | Penalty level | Examples |
|---|---|---|
| 1 | No imprisonment (but other forms of punishment, such as fine) | Defamation, slander, minor forms of vandalism |
| 2 | Normally no prison sentence unless explicitly justified by the judge (then 6 months to 3 years) | Common theft, discrimination, forgery |
| 3 | Cell sentence of 3 to 5 years | Theft with violence, extortion, fraud, bribery |
| 4 | Imprisonment from 5 to 10 years | Kidnapping, torture, glorification of terrorism |
| 5 | Cell sentence of 10 to 15 years | Armed robbery, hostage-taking |
| 6 | Cell sentence of 15 to 20 years | Leading terror group, rape of minor, ecocide |
| 7 | Prison sentence of 20 to 30 years | Manslaughter, sexual assault resulting in death |
| 8 | Life imprisonment | Murder, intrafamily manslaughter, genocide |
**Conclusion: Navigating Change with Carefulness and Foresight**
The new Criminal Code brings significant changes for businesses and their leaders, and it is essential to understand these changes and take proactive measures to manage risk.
It is therefore important to seek the assistance of an experienced criminal law attorney.
Contact our Antwerp-based legal team. By using the right strategies and resources, companies can navigate a safe course amid these legal changes.
