Corporate Criminal Liability: What Does Legislative Decree 231/2001 Provide?
Corporate criminal liability is a central topic in corporate criminal law. In Italy, Legislative Decree 231/2001 introduced a system of liability for collective entities—such as companies, associations, and consortia—in relation to certain offenses committed in their interest or to their advantage by directors, executives, or employees.
This regulation marked a turning point: companies are no longer merely economic operators but are also legal subjects liable under criminal law. For internationally operating businesses, understanding this regulation is essential to protect their operations and leadership.
What Is Corporate Criminal Liability?
Legislative Decree 231/2001 establishes that companies can be held criminally liable if certain crimes are committed in their interest or to their benefit. This introduces sanctions not only against individuals but also directly against the legal entity.
Sanctions under the decree may include:
- Significant monetary fines
- Confiscation of assets and corporate bank accounts
- Disqualification from business activities
- Temporary judicial administration
To reduce or avoid liability, the law allows the adoption of organizational and management models (so-called 231 compliance models) designed to prevent criminal offenses.
Offenses Covered by Legislative Decree 231/2001
Legislative Decree 231/2001 includes a broad list of crimes for which a company can be held liable. This list is updated regularly to include new types of offenses.
Key categories include:
Corporate and financial crimes:
- False corporate communications, such as falsified financial statements
- Insider trading and unlawful use of confidential information
- Banking fraud and investor scams
Tax offenses:
- VAT fraud and carousel schemes
- Issuing invoices for non-existent transactions
- Tax evasion using offshore structures
Crimes against public administration:
- Bribery of national and foreign public officials
- Extortion and unlawful receipt of public subsidies
- Irregularities in the management of public contracts and tenders
Transnational crimes:
- Money laundering and self-laundering
- Terrorism financing
- Illicit transfer of funds abroad
Environmental and workplace safety violations:
- Environmental damage due to illegal disposal or pollution
- Manslaughter and serious injuries due to failure to comply with workplace safety regulations
Prevention and Defense in 231 Proceedings
When a company is under investigation pursuant to Legislative Decree 231/2001, it is essential to adopt a timely and targeted strategy.
The main lines of defense include:
- Reviewing organizational models to prove the company has implemented effective prevention measures
- Challenging charges through collection of accounting and corporate documentation
- Protecting corporate assets by opposing seizures and account freezes
- Defending individual executives to avoid personal criminal liability
In international cases, it is also important to manage the risk of extradition and judicial cooperation between states, especially when managers are located abroad.
