The European Union has adopted its first comprehensive anti-corruption directive, harmonising definitions and penalties for offences like bribery and misappropriation across member states, with fines up to 5% of worldwide turnover for companies. Member states must transpose it within 24-36 months, adopt national strategies, enhance cross-border cooperation with bodies like OLAF and EPPO, and establish independent anti-corruption bodies.
EU Parliament Approves Directive
The European Parliament adopted the EU’s first bloc-wide criminal law framework against corruption on 26 March 2026, with 581 votes in favour, 21 against, and 42 abstentions. This directive, provisionally agreed between Parliament and the Council in December 2025, establishes harmonised definitions for corruption offences including bribery, misappropriation, obstruction of justice, trading in influence, unlawful exercise of functions, illicit enrichment linked to corruption, concealment, and private-sector corruption.
As reported by the European Parliament press office, the new rules modernise existing frameworks like the Council Framework Decision 2003/568/JHA and the 1997 Convention, while amending Directive (EU) 2017/1371. Parliament’s lead MEP, Raquel García Hermida-van der Walle (Renew, NL), commented:
“This law is historic. Corruption has caused journalists to be silenced, citizens to be killed, and lives cut short. Behind every statistic is a name, a story, and a future denied. Corruption also drains billions from our economies, erodes trust in government, and undermines democracy itself. Left unchecked, it threatens the very foundation of our Union. This law is about defending Europe at its core and delivering for our citizens.”
EP President Roberta Metsola stated:
“I am immensely proud of the efforts made. Today our message is clear: corruption has no place in Europe.”
The directive entered into force 20 days after publication in the Official Journal of the EU, with member states having 24 months to transpose most provisions and 36 months for prevention-related requirements.
Key Offences Defined
The directive sets common minimum definitions for a wide range of corruption offences across public and private sectors. These include active and passive bribery of public officials, where an undue advantage—tangible or intangible—is offered, promised, given, requested, or accepted in connection with public functions (Art. 7).
As detailed by JD Supra legal analysts, “public official” is defined broadly to include individuals in state-owned enterprises, privately owned entities with public service functions, Union officials, arbitrators, jurors, and persons in international organisations. Private-sector bribery covers breaches of professional duties (Art. 8).
Trading in influence is a new standalone offence (Art. 10): active trading involves promising, offering, or giving a benefit to someone to improperly influence a public official for an undue advantage; passive trading is accepting such a benefit. MEP Raquel García Hermida-Van Der Walle noted on Italy:
“Although in Italy the crime of abuse of office has been abolished, it must be reinstated… Italy will have to mandatorily criminalise at least two of the most serious offences that fall in the remit of abuse of function.”
Other offences encompass misappropriation by public officials, unlawful exercise of public functions, obstruction of justice in corruption proceedings, illicit enrichment by public officials, and concealment of corruption proceeds. Attempts, incitement, and aiding/abetting are also criminalised.
Penalties for Individuals and Companies
For individuals, minimum maximum custodial penalties include at least five years for serious public-sector bribery (where duties are breached), four years for misappropriation and enrichment/concealment, and three years for other bribery and trading in influence. Member states may impose stricter penalties.
Legal persons face “effective, proportionate, and dissuasive” penalties, with minimum fines for serious offences at 5% of worldwide turnover or €40 million for bribery/misappropriation, and 3% or €24 million for trading in influence. Additional sanctions include exclusion from public funding/tenders, withdrawal of authorisations, judicial winding-up, closure of establishments, and publication of judgments (subject to data protection).
Corporate liability extends to offences by persons in leading positions or due to lack of supervision/control (Art. 16). As reported by Bastian Schwind-Wagner of FinancialCrime.lu,
“The Directive establishes a stronger, more harmonised EU criminal framework against corruption, increasing risks for individuals and companies while creating clearer incentives for effective compliance, cooperation and voluntary disclosure.”
Limitation periods are extended: at least five to eight years for prosecution, depending on severity, and up to ten years post-conviction for enforcement.
Prevention and National Strategies
Member states must adopt and update national anti-corruption strategies, involving civil society, conduct regular risk assessments, and ensure systems for conflicts of interest, political financing transparency, and integrity standards. Dedicated, independent bodies for prevention and repression are required, with adequate staffing and protection from interference.
Preventive measures include asset/interest declarations, revolving-door rules, and training for officials, judiciary, and law enforcement. The directive encourages civil society participation and whistleblower protection under Directive (EU) 2019/1937.
Cross-Border Cooperation and Jurisdiction
Cooperation is reinforced between national authorities and EU bodies like OLAF, EPPO, Europol, Eurojust, and the Commission, with improved data exchange via tools like Europol’s SIENA. Member states must publish comparable, machine-readable annual data on offences, prosecutions, convictions, and fines for transparency and policymaking.
Jurisdiction applies if the offence occurs in the territory, by nationals, or via information systems there (Art. 20). Extensions cover habitual residents, offences against nationals, or for benefit of local companies. Investigative tools mirror those for organised crime, including asset tracing, freezing, and confiscation aligned with Directives (EU) 2014/42/EU and 2024/1260.
Implications for Businesses
Companies should review anti-bribery policies, internal controls, risk assessments, and training, as effective compliance programmes mitigate sanctions (Art. 18a). Prompt cooperation and disclosure reduce penalties, while “window dressing” does not.
As advised by JD Supra, firms must monitor national transpositions, which may vary, and prepare for cross-border enforcement. Bastian Schwind-Wagner urged:
“Immediate action is required: strengthen anti-corruption controls, update third-party due diligence and whistleblower channels, and prepare cross-border incident response plans.”
High-risk sectors like public procurement and investor schemes face escalated scrutiny.
Background and Context
The Commission proposed the package on 3 May 2023 under Article 83 TFEU, targeting “particularly serious crime with a cross-border dimension.” A 2025 Eurobarometer survey found 69% of Europeans believe corruption is widespread, with 66% saying high-level cases go unpunished.
The directive implements UN Convention against Corruption (UNCAC) goals, closing fragmentation gaps. Italy’s 2024 abolition of abuse of office exemplifies national divergences now addressed.
By Christopher Crosby of Law360 UK,
“European Union lawmakers passed a new set of bloc-wide anti-corruption rules on Thursday that will streamline legal definitions and set out penalties for bribery, misappropriation and economic crimes as the bloc seeks to crack down on corruption across borders.”
Raquel García Hermida-Van Der Walle called it
“probably one of the most important wins in this negotiation and for this Parliament.”
