The new Timor-Leste Anti-corruption Law (the “Law on Measures to Prevent and Fight Corruption”) has just been published as Law No. 7/2020, of 26 August 2020.
Despite its title, the new statute has an extremely broad scope, covering not only rules on the types of “corruption offenses” and respective sanctioning regime, but also a wider range of matters, including rules on recruitment of ex-public officials, adoption of codes of conduct by both public and private entities, rules on public tenders, corruption in private business, statutes of limitation, criminal investigation, and freezing and seizure of assets, amongst others.
One area where the new law innovates is in setting forth, for the first time in Timor-Leste, that legal persons can be held liable for criminal offenses. It also significantly extends legal obligations to private individuals, corporations and entities, which will have to adopt a series of legal procedures and mechanisms to avoid prosecution under the new framework.
Besides corruption, strictu sensu, and similar crimes which have seen their regulation updated, and the creation of the always controversial crime of “unjustified possession of wealth”, the anti-corruption law also creates new crimes in areas that one would typically not associate with corruption and mismanagement of State assets.
Importantly, in terms of prosecution of offenses covered by this new framework, the law includes rules on whistleblower and witness protection, and also a number of provisions that may be crucial for corporations and individuals that are subject to the United States Foreign Corrupt Practices Act, the UK Bribery Act (2010), and similar foreign legislation that allows for protections and safeguards related to gifts and hospitality.
Finally, the new Anti-corruption Law includes rules on waiver of professional secrecy, and on declaration of wealth, assets, interests, and valuables that extend to a significant number of civil servants, other agents of the State, their relatives and relations.
The Law comes into force 180 days after its publication, meaning that all persons covered by its provisions have 6 months to prepare for its implementation. MIRANDA’s white-collar crime and anti-corruption team is available to assist you in navigating this new complex and important legal framework. Should you require additional information on the new framework, an English translation of the Law, or wish to discuss how we can help you prepare the necessary instruments and mechanisms required to be fully compliant, please let us know. We are also available to provide training to your local Timor-Leste-based staff to ensure that your operations don’t run afoul of the new law.
