The basis for combating economic crimes lies in the Economic Offenses Act (WED). This law defines what acts are considered economic crimes and establishes penalties for violations. Many of these crimes and offenses are linked to specific laws or regulations, such as environmental laws, tax laws or rules around trade. They also include the Occupational Health and Safety Act.
What are the economic crimes?
Some examples of economic crimes include:
- Environmental violations: violation of environmental regulations, such as illegal discharges or pollution.
- Fraud: including tax, subsidy or benefit fraud.
- Cartelization: prohibited agreements between companies to restrict competition.
- Illegal trade: for example, smuggling of goods or trafficking without the necessary permits.
- Food Safety: violations related to food regulations.
Depending on the severity of the offense, sanctions can range from fines to imprisonment. In addition, companies or individuals guilty of economic crimes may also face measures such as administrative sanctions, such as the revocation of licenses.
Labor conditions law (arbowet) violated?
Although violations of the Working Conditions Act (Arbowet) are usually dealt with administratively, in some cases they can also have criminal consequences. This usually occurs when a serious accident has occurred or when there is gross negligence. Unlike administrative fines, which are often only felt financially, criminal prosecutions can have far-reaching consequences. In fatal accidents, for example, a public trial may follow, which can lead to negative publicity and reputational damage. A criminal conviction can also cause problems in obtaining a Certificate of Good Conduct for Legal Persons (VOG RP), in tenders, or in obtaining insurance.
Criminal charges can result in higher fines, which can reach up to €870,000, or 10% of a company's annual turnover. In addition, additional penalties such as shutting down the company can be imposed. Not only companies can be prosecuted; individuals such as principals and executives can also be held personally liable and risk imprisonment or community service. Section 32 of the Occupational Health and Safety Act, the so-called cap article, plays an important role here, as it requires employers to take precautions to prevent danger to life or serious harm. Even if an accident was not immediately foreseeable, a criminal conviction may still follow if supervisors did not pay sufficient attention to safety situations within their organization.
Need an economic crime lawyer?
The attorneys at Kötter, L'Homme & Plasman Lawyers are experienced in assisting clients suspected of an economic crime. We offer expert, honest and sincere advice.
Do you have questions or would you like to seek legal help immediately? If so, please contact our office. You can email us at info@klpadvocaten.nl or contact us by phone during business hours at 020-6731548. For urgent matters, such as an upcoming arrest, please reach us at our emergency number 06-24428734.
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