Recasting Belgian Criminal Law: Key Changes Impacting Corporates

• Published date: 26 March 2024
• Subject Matter: Corporate/Commercial Law, Corporate and Company Law
• Law Firm: Loyens & Loeff
• Author: Ms Clémence Van Muylder and Maha Mahmoud

The Belgian Parliament has recently approved the draft bills recasting the first and second book of the Belgian criminal code. The reform aims at making the criminal code clearer and more accessible, but it also brings a few novelties, including for corporates a new regime of sanctions with eight levels of penalties, new types of sanctions, the increase of the fines applicable to corporations, the introduction of the offence "Ecocide", and adjustments to several white-collar offences. In this article, we discuss the main changes brought to general principles of criminal law that could potentially impact corporates.

Spirit of the reform

The reform is firmly rooted in a modernisation vision for the Criminal Code that dates back to... 1867! The draft bill contains several changes with three main goals: modernising, simplifying and making the new rules easier to read and understand. By drawing on practical insights, it seeks to streamline the process of qualifying offences while maintaining the paramount goal of ensuring enhanced legal certainty. Furthermore, this recast deliberately shifts focus from often-criticised imprisonment sentences, striving instead for a more flexible approach, where imprisonment is considered only as a last resort measure.

Classification of sentences into eight different levels

One of the most prominent parts of the reform relates to the recast of the sentencing regime. The reform encapsulates a new sentencing regime with sentences categorised in eight levels with a clear distinction between the sentences applicable to legal entities and those applicable to individuals.

With a view to simplification, the draft bill profoundly modifies the repressive arsenal applicable to legal entities. Among other things, it provides for new penalties, and it abolishes the overly complicated table for conversion of prison sentences into fines for companies. For instance, under the New Criminal Code, a level 4 penalty for legal entities consists of a fine ranging from over 600,000 euros to 800,000 euros.

For each level, various primary sentences are provided, which may also be paired with accessory sentences. Within the same level of offence, the magistrate may mix penalties, as well as move up or down a level based on various factors, including aggravating factors or extenuating circumstances. For instance, the judge may move up a level if there is a prior offence.

Finally, it is to be noted that fines provided in the new Code will no longer have...