Introducing Corporate Criminal Liability in Ukraine: Terra Incognita

Abstract

Modern political developments, globalized economy, and further synchronization of legal systems around the world provide a unique forum for expanding existing national-law frameworks, establishing new principles and doctrines of law. Criminal law is everything but an exception. New international threats, such as terrorism, economic criminality and public corruption, require deep rethinking of national and international criminal law regimes respectively. This Article is focused on the advantages and flaws of corporate criminal liability in yet another European jurisdiction – in Ukraine. American corporate liability model will serve its virtual “sparring partner” role for the purposes of evaluating both progress and potential pitfalls on Ukraine’s way to establishing effective legal framework to combat corporate crime.The Criminal Code of Ukraine (“CCU”) has been recently amended by introducing quasi-criminal liability for organizations in the form of specific criminal law measures. This by all means historical legislative step highlights a few significant points. First, from now on liability may be imposed on an artificial legal entity – not just a natural person. Second, Ukraine is serious about its commitment to becoming a member of the European Union. Finally, at this point of the national criminal law developments in the direction of democracy, rule of law, and free-market economy neither judiciary, law enforcement, nor legal community in general are willing to accept criminal corporate liability statutes, due to their novelty and absence of meaningful and comprehensive doctrinal explanation. Meanwhile Ukrainian legal commentary remain quite skeptical about the current model of corporate liability and argue that the traditional approach to individual criminal liability should remain the only remedy available.