The Importance of Criminal Compliance for SMEs Obligations, Benefits, and Key Strategies to Avoid Sanctions

In recent years, criminal compliance has become an essential element of corporate governance, not only for large corporations but also for small and medium-sized enterprises (SMEs). In Spain, the reform of the Penal Code under Organic Law 1/2015 established that companies can be held criminally liable for offenses committed by their employees if adequate compliance programs are not in place. This article will explore why compliance matters for SMEs, the legal obligations they face, and practical steps they can take to ensure protection against potential liabilities.

1. What Is Criminal Compliance?
Criminal compliance refers to a set of internal policies and procedures designed to prevent, detect, and respond to criminal activities within an organization. It serves as a safeguard to ensure that a company and its employees operate within the framework of the law, avoiding fines, reputational damage, or even criminal prosecution.

2. Why SMEs Should Care About Compliance
There is a common misconception that compliance is only relevant for large corporations. However, SMEs face the same risks of criminal liability as larger companies, often with fewer resources to manage the consequences of non-compliance. Moreover, SMEs can gain a competitive advantage by implementing robust compliance systems, showcasing their commitment to ethical practices and governance.

3. Key Legal Frameworks
In Spain, the primary legal requirements for corporate compliance include:

Organic Law 1/2015: Establishes the criminal liability of legal entities.
Article 31 bis of the Penal Code: Outlines the criteria for exemption from corporate criminal liability.
Anti-Bribery and Corruption Regulations: Applicable to companies operating in international markets.
Understanding these frameworks is critical for SMEs to navigate their compliance obligations effectively.

4. Benefits of Implementing a Criminal Compliance Program
Implementing a compliance program is not just a legal obligation; it offers several advantages:

Exemption from criminal liability: Companies can avoid penalties if they demonstrate a proactive commitment to compliance.
Reputational protection: A robust program enhances trust among clients, partners, and investors.
Operational improvements: Identifying and mitigating risks leads to more efficient business practices.

5. Practical Steps for SMEs to Implement Compliance
Here are actionable strategies for SMEs to establish a strong compliance program:

Draft internal policies: Develop clear codes of conduct and anti-corruption policies.
Establish reporting channels: Create confidential whistleblowing mechanisms for employees.
Provide training: Educate staff on their legal responsibilities and ethical obligations.
Conduct regular audits: Monitor and review compliance measures periodically to ensure effectiveness.
Appoint a compliance officer: Even in smaller organizations, having a designated compliance leader is crucial.

6. Real-Life Examples and Lessons Learned
Including recent cases where SMEs faced sanctions due to lack of compliance could provide a compelling conclusion. Highlight how a proactive approach could have mitigated the consequences and emphasize the importance of seeking legal advice from specialized professionals.

In today’s regulatory environment, compliance is no longer optional for SMEs. By implementing a criminal compliance program, companies not only mitigate legal risks but also position themselves as trustworthy and responsible market players. At Dr. Frühbeck Abogados, we specialize in helping businesses design and implement tailor-made compliance programs to ensure they meet legal standards and operate with integrity.

Contact us today to learn how we can support your business in achieving full compliance.