The EU Anti-Corruption Directive: What Your Approvals & Disclosures Need to Show

The EU Anti-Corruption Directive At a Glance

• What: the EU Anti-Corruption Directive (2026/1021) replaces a patchwork of older EU instruments with harmonised corruption offences.
• When: in force since the end of May 2026, with national laws due by 1 June 2028.
• Who is liable: companies, for corruption committed for their benefit by their leaders, or made possible by a lack of supervision or control.
• What it could cost: maximum fines of at least 5% of worldwide turnover or €40 million for the most serious offences.
• Why it matters: for the first time, an explicit EU-wide link between effective compliance programmes and lower penalties.

This blog looks at what the directive covers, how companies will be held liable and how your approvals and disclosures process can help you demonstrate that your compliance programme is genuinely effective.

When Does The EU Anti-Corruption Directive Apply?

The EU Directive has to be transposed into national law before it applies to companies.

The Directive sets minimum standards, so some member states are expected to go further. It also allows all twenty seven member states to take jurisdiction over any corruption which benefits a company established in their territory, so non-EU entities with EU operations should take note.

Which Offences Does the EU Anti-Corruption Directive Cover?

Member states must criminalise a harmonised set of offences. These fall into three broad groups:

1. Bribery and influence: bribery of public officials, bribery in the private sector and trading in influence.
2. Abuse of public office: misappropriation of public funds, with an option to extend this to the private sector and unlawful exercise of public functions.
3. Protecting the proceeds and the process: obstruction of justice, enrichment from corruption offences and concealment of the proceeds of corruption.

When Is a Company Liable and What Could It Cost?

A company can be held liable in two ways:

1. where an offence is committed for its benefit by a person in a leading position; and
2. where a lack of supervision or control by such a person has made the offence possible.

The second route is familiar from the UK’s failure to prevent offences and from national regimes in Italy, Spain and Switzerland.

For the most serious offences, member states must set maximum fines of at least five percent of a company’s total worldwide turnover or €40 million. For other offences, the figure is at least three percent or €24 million. Exclusion from public procurement, withdrawal of permits and publication of the judgment are also available.

Does a Compliance Programme Help?

Yes, provided it is real. The EU Directive lists effective internal controls, ethics awareness and compliance programmes as mitigating factors, alongside prompt self-reporting and remedial action. But it is also clear that “window dressing” of your ethics and compliance programme will not qualify. Effectiveness needs to be evidenced.

What Does This Mean for Approvals and Disclosures?

Each part of your approvals and disclosures process can create the evidence the Directive rewards:

What Should Organizations Do Now?

1. Map your gift, hospitality, conflict and third party controls against the Directive’s full list of offences, not just public sector bribery.
2. Identify consultants and intermediaries who deal with public bodies on your behalf and apply enhanced checks.
3. Record who reviewed every approval, what information they had and what they decided.
4. Track how each EU member state where you operate transposes the Directive, especially where it goes beyond the minimum.
5. Start collecting the data that will show your programme is effective now, rather than in 2027 or beyond.

How Case IQ Can Help

Case IQ’s Quantum Approvals & Disclosures runs conflict of interest, gift and hospitality and third-party requests through configurable approval workflows and agentic AI. The solution gives compliance teams the visibility and context they need to identify potential risk earlier, understand what’s driving it, make informed decisions, and take the right action. Each record maintains a traceable record of what was requested, what was considered, who acted and why, so you can evidence that your compliance programme is effective, not just on paper.

Frequently Asked Questions

1. What is the EU Anti-Corruption Directive?

The EU Anti-Corruption Directive (2026/1021) establishes harmonized minimum standards for preventing and combating corruption across all 27 EU member states. It covers offences including public and private sector bribery, trading in influence, misappropriation, and obstruction of justice. The Directive also strengthens corporate accountability and recognizes effective compliance programs as a potential mitigating factor when penalties are assessed.

2. When does the EU Anti-Corruption Directive take effect?

The Directive entered into force on May 31, 2026. EU member states must transpose most of its provisions into national law by June 1, 2028, with national anti-corruption strategies and risk assessments due by June 1, 2029. Organizations should begin reviewing their anti-bribery and corruption controls now rather than waiting for national implementation deadlines.

3. What penalties can companies face under the EU Anti-Corruption Directive?

For the most serious corruption offences, the Directive requires member states to establish maximum corporate fines of at least 5% of worldwide turnover or €40 million. For other offences, the corresponding figures are at least 3% or €24 million. Additional penalties may include exclusion from public procurement, withdrawal of permits, and publication of judgments. The penalties applicable to a particular company will depend on the relevant national legislation and circumstances.

4. Can companies be held liable for corruption committed by employees or third parties?

Yes. Under the Directive's corporate liability provisions, companies may be held responsible for corruption committed for their benefit by individuals in leadership positions. Liability may also arise where inadequate supervision or control by those individuals makes corruption possible. This makes effective oversight, documented approvals, and risk-based third-party due diligence important components of a defensible compliance program.

5. How does the EU Anti-Corruption Directive affect gifts, hospitality, and conflict of interest disclosures?

The Directive increases the importance of consistent controls over activities that may create bribery or corruption risks. Organizations should review how they approve gifts, hospitality, donations, and third-party engagements, as well as how they identify and manage conflicts of interest. Documenting who submitted a request, who reviewed it, what information was considered, and why a decision was made can help demonstrate that compliance controls operate effectively in practice.

6. Can an effective compliance program reduce penalties under the EU Anti-Corruption Directive?

Yes. The Directive identifies effective internal controls, ethics awareness, and compliance programs as potential mitigating factors when determining penalties. However, simply having written policies is not enough. Organizations should be prepared to demonstrate how their controls are implemented, monitored, and enforced through evidence such as approval records, escalations, refusals, screening results, and corrective actions.

7. How can organizations demonstrate compliance program effectiveness under the new EU rules?

Organizations can demonstrate effectiveness by maintaining reliable records of compliance decisions and monitoring how controls perform over time. This includes tracking gifts and hospitality approvals, conflict of interest disclosures, third-party screening, escalations, and rejected requests. Analyzing these records across business units and jurisdictions can help compliance teams identify emerging risks, address control weaknesses, and provide evidence of active supervision.

8. How can compliance technology help organizations prepare for the EU Anti-Corruption Directive?

Compliance technology can help organizations standardize approval processes, improve visibility into risk, and maintain auditable records of compliance decisions. Case IQ's Quantum Approvals & Disclosures solution supports workflows for gifts and hospitality, conflicts of interest, donations, and third-party requests. By centralizing information and documenting reviews and decisions, organizations can strengthen oversight and better demonstrate that their compliance programs operate effectively.

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Important: This post is for informational and educational purposes only. This post should not be taken as legal advice or used as a substitute for such. You should always speak to your own lawyer.