{"id":428704,"date":"2015-07-15T10:34:12","date_gmt":"2015-07-15T07:34:12","guid":{"rendered":"http:\/\/www.moldova.org\/?p=428704"},"modified":"2015-07-15T10:34:12","modified_gmt":"2015-07-15T07:34:12","slug":"moldovas-white-collar-crimes-national-context-and-recent-legal-developments","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/moldovas-white-collar-crimes-national-context-and-recent-legal-developments\/","title":{"rendered":"Moldova\u2019s \u201cWhite Collar\u201d Crimes: National Context and Recent Legal Developments"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

The term \u201cwhite collar\u201d crimes was first coined by sociologist Edwin Sutherland. It denotes the full range of crimes committed by people who enjoy a high social standing over the course of their professional life. This term was later imported into the legal terminology.<\/p>\n

There\u2019s no single opinion with regard to the typology of crimes that meet the definition of \u201cwhite collar.\u201d Despite the diversity of offenses that could fall into the category, the following common features seem to stand out. First, the crimes are committed by people with a high social standing (e.g., civil servants, decision-makers, presidents and senior managers of companies, and other high-ranking officials). Second, the crimes are committed in the process of carrying out job-related responsibilities and to the detriment of the employing company. Third, the motives for committing the crimes by the \u201cwhite collar\u201d offender is the pursuit of material gains. <\/p>\n

In the Republic of Moldova, the \u201cwhite collar\u201d phenomenon is characterized by a high degree of invisibility. The reasons are twofold: first, \u201cwhite collar\u201d crimes are perpetrated through convoluted schemes, over a long period of time. Second, \u201cwhite collar\u201d criminals, due to their high social standing and network of contacts, are capable of inspiring trust and credibility through their behavior.<\/p>\n

\u201cWhite collar\u201d criminality is closely linked with corruption-related offenses and work-related crimes. \u201cWhite collar\u201d criminality is often associated with and takes the shape of economic crimes. <\/p>\n

As such, there are two main groups of offenses: 1) justice-related crimes and corruption in the public and private sectors; and 2) economic crimes.<\/p>\n

The first category covers the following offenses: interference with justice and criminal prosecution, issuing a court sentence, decision or judgment in violation of the law, forgery of evidence, passive corruption, active corruption, influence peddling, misuse of authority or abuse of power, etc.<\/p>\n

The second category of \u201cwhite collar\u201d crimes includes: acquiring credit by fraud, violation of crediting rules, bad or fraudulent management of a bank, obstructing banking supervision, improper use of proceeds from domestic and foreign loans guaranteed by the state, illegal practice of entrepreneurial activity, money laundering, corporate tax fraud, individual tax fraud, limiting free competition, non-loyal competition, smuggling, intentional insolvency, fictitious insolvency, etc.<\/p>\n

Taking into account the distinct nature of \u201cwhite collar\u201d criminality, criminal legislation stipulates clear penalties. In addition to fines and imprisonment, in such cases when offenses meet the criteria of \u201cwhite collar\u201d crimes, applicable sentences include depriving the offender of the right to hold certain offices or undertake certain activities. These punishments aim to remove the convicted person from his\/her office, through which the execution of the crime was facilitated. The penalties applied in relation to those found guilty of \u201cwhite collar\u201d crimes are normally more severe compared to those found guilty of different offenses. The maximum size of applicable fines can reach MDL 200,000 (around EUR 10,000), compared to MDL 20,000 (around EUR 1,000) in the case of ordinary offenders, if the latter don\u2019t have special status or didn\u2019t act with the intent to accumulate material wealth. The same principles apply in cases when the offender is deprived of the right to hold certain offices and\/or exercise certain activities. In such cases, the penalties for offenders meeting the \u201cwhite collar\u201d criteria are more severe than for ordinary criminals. The severity of punishment extends up to 15 years, compared to a general ban of 5 years for ordinary offenders. <\/p>\n

In addition to the above punishments, other measures can be applied, including confiscation of assets and extended confiscation of assets. <\/p>\n

In comparison to special confiscation, extended confiscation is intended primarily for people who fit the category of \u201cwhite collar\u201d criminals. It represents the confiscation of certain assets if their value substantially exceeds the value of legally acquired goods by the offender. Such decisions are taken by courts, based on evidence put forward by the prosecution. The Criminal code of Moldova clarifies the nature of such illegal activities. In the case of extended confiscation, the confiscation can also cover goods originating from illegal activities that do not directly relate to the crimes for which the offender is sentenced \u2013 in other words, where a direct link between the crime that leads to sentencing and the confiscated goods is not established.<\/p>\n

The introduction of such a measure in the criminal legislation of Moldova is the result of recent reform efforts and the implementation of the National Justice Sector Reform Strategy. This development represents a necessary and long-awaited change in national legislation. It puts in place a modern concept for combating the illegal acquisition of property. We hope that this legal measure will be an efficient tool and will prove successful in combating general criminality, and in particular \u201cwhite collar\u201d offenses, whilst increasing social support for addressing these challenges. <\/p>\n

By Daniel Martin, Litigation Partner, and Stanislav Copetchi, Lawyer, ACI Partners for CEE Legal Matters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>The term \u201cwhite collar\u201d crimes was first coined by sociologist Edwin Sutherland. It denotes the full range of crimes committed by people who enjoy a high social standing over the course of their professional life. This term was later imported into the legal terminology. There\u2019s no single opinion with regard to the typology of crimes […]<\/p>\n","protected":false},"author":1,"featured_media":428701,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,12],"tags":[],"class_list":["post-428704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-justice","category-opinion"],"content_social_share":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

The term \u201cwhite collar\u201d crimes was first coined by sociologist Edwin Sutherland. It denotes the full range of crimes committed by people who enjoy a high social standing over the course of their professional life. This term was later imported into the legal terminology.<\/p>\n

There\u2019s no single opinion with regard to the typology of crimes that meet the definition of \u201cwhite collar.\u201d Despite the diversity of offenses that could fall into the category, the following common features seem to stand out. First, the crimes are committed by people with a high social standing (e.g., civil servants, decision-makers, presidents and senior managers of companies, and other high-ranking officials). Second, the crimes are committed in the process of carrying out job-related responsibilities and to the detriment of the employing company. Third, the motives for committing the crimes by the \u201cwhite collar\u201d offender is the pursuit of material gains. <\/p>\n

In the Republic of Moldova, the \u201cwhite collar\u201d phenomenon is characterized by a high degree of invisibility. The reasons are twofold: first, \u201cwhite collar\u201d crimes are perpetrated through convoluted schemes, over a long period of time. Second, \u201cwhite collar\u201d criminals, due to their high social standing and network of contacts, are capable of inspiring trust and credibility through their behavior.<\/p>\n

\u201cWhite collar\u201d criminality is closely linked with corruption-related offenses and work-related crimes. \u201cWhite collar\u201d criminality is often associated with and takes the shape of economic crimes. <\/p>\n

As such, there are two main groups of offenses: 1) justice-related crimes and corruption in the public and private sectors; and 2) economic crimes.<\/p>\n

The first category covers the following offenses: interference with justice and criminal prosecution, issuing a court sentence, decision or judgment in violation of the law, forgery of evidence, passive corruption, active corruption, influence peddling, misuse of authority or abuse of power, etc.<\/p>\n

The second category of \u201cwhite collar\u201d crimes includes: acquiring credit by fraud, violation of crediting rules, bad or fraudulent management of a bank, obstructing banking supervision, improper use of proceeds from domestic and foreign loans guaranteed by the state, illegal practice of entrepreneurial activity, money laundering, corporate tax fraud, individual tax fraud, limiting free competition, non-loyal competition, smuggling, intentional insolvency, fictitious insolvency, etc.<\/p>\n

Taking into account the distinct nature of \u201cwhite collar\u201d criminality, criminal legislation stipulates clear penalties. In addition to fines and imprisonment, in such cases when offenses meet the criteria of \u201cwhite collar\u201d crimes, applicable sentences include depriving the offender of the right to hold certain offices or undertake certain activities. These punishments aim to remove the convicted person from his\/her office, through which the execution of the crime was facilitated. The penalties applied in relation to those found guilty of \u201cwhite collar\u201d crimes are normally more severe compared to those found guilty of different offenses. The maximum size of applicable fines can reach MDL 200,000 (around EUR 10,000), compared to MDL 20,000 (around EUR 1,000) in the case of ordinary offenders, if the latter don\u2019t have special status or didn\u2019t act with the intent to accumulate material wealth. The same principles apply in cases when the offender is deprived of the right to hold certain offices and\/or exercise certain activities. In such cases, the penalties for offenders meeting the \u201cwhite collar\u201d criteria are more severe than for ordinary criminals. The severity of punishment extends up to 15 years, compared to a general ban of 5 years for ordinary offenders. <\/p>\n

In addition to the above punishments, other measures can be applied, including confiscation of assets and extended confiscation of assets. <\/p>\n

In comparison to special confiscation, extended confiscation is intended primarily for people who fit the category of \u201cwhite collar\u201d criminals. It represents the confiscation of certain assets if their value substantially exceeds the value of legally acquired goods by the offender. Such decisions are taken by courts, based on evidence put forward by the prosecution. The Criminal code of Moldova clarifies the nature of such illegal activities. In the case of extended confiscation, the confiscation can also cover goods originating from illegal activities that do not directly relate to the crimes for which the offender is sentenced \u2013 in other words, where a direct link between the crime that leads to sentencing and the confiscated goods is not established.<\/p>\n

The introduction of such a measure in the criminal legislation of Moldova is the result of recent reform efforts and the implementation of the National Justice Sector Reform Strategy. This development represents a necessary and long-awaited change in national legislation. It puts in place a modern concept for combating the illegal acquisition of property. We hope that this legal measure will be an efficient tool and will prove successful in combating general criminality, and in particular \u201cwhite collar\u201d offenses, whilst increasing social support for addressing these challenges. <\/p>\n

By Daniel Martin, Litigation Partner, and Stanislav Copetchi, Lawyer, ACI Partners for CEE Legal Matters<\/a><\/p>\n

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