Economic criminal law concerns the enforcement of regulatory legislation by criminal means. It covers rules that affect businesses: environment, working conditions, food safety, financial supervision, competition and sanctions legislation.
Legal basis
The Economic Offences Act designates in Articles 1 and 1a which breaches of which statutes are economic offences and divides them into categories with their own maximum penalties. The Act also confers its own powers and additional penalties, such as closure of the business, forfeiture and publication of the judgment. Article 51 of the Criminal Code allows prosecution of legal persons and of those who ordered or in fact directed the prohibited conduct; the criteria are set out in the Drijfmest judgment of 2003. Investigation is often carried out by specialist agencies such as the Fiscal Information and Investigation Service, the Human Environment and Transport Inspectorate and the Labour Inspectorate, under the authority of the functional public prosecutor’s office.
How it works in practice
Many cases begin as administrative supervision and tip into criminal law once a reasonable suspicion arises. That tipping point is decisive: from then on the right to silence applies and a caution must be given, whereas in the supervisory phase there is a duty to cooperate. Cases often end in a settlement or a penal order; where amounts are high, these are reviewed and published.
Where it goes wrong
Businesses cooperate fully during an inspection and thereby supply the evidence for the later prosecution. A second error is the absence of an internal procedure for raids and demands for information. Third, directors’ exposure is underestimated: alongside the company, the person in fact directing the conduct can be prosecuted personally.
Related terms
Economic criminal law borders on the administrative fine, the right to silence and money laundering.
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