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CHECK THIS OUT! Here are Stages in Handling Corporate Crime

Today, the crime mode is growing. A crime is not always committed by individuals, but also institutions, such as corporations. In response to this, a year ago, the Supreme Court (MA) issued Regulation Number. 13 Year 2016 on Procedures of Handling Criminal Acts by the Corporation.

However, in reality the corporation is involved in various criminal acts (corporate crime) and it can be a place to hide treasures gained through criminal acts. These criminal acts are untouched by the legal process. Frequently, such crime issues become the subjects of debate among law enforcement officers. Therefore, the Supreme Court issued the Supreme Court Regulation (PERMA) Number 13 Year 2016 on Procedures of Handling Criminal Acts by the Corporation.

Previously, the definition of corporate criminal under Article 3 PERMA Number. 13/2016 is:

“a criminal act by the Corporation is a criminal act committed by the person based on the employment relationship, or based on other relationships, either individually or jointly, acting for and on behalf of corporations inside and outside the Corporate Environment.”

There are several things that need to be considered by the judges in determining the roles and corporate actions in a criminal act. First, corporations gain advantage or benefit of certain crimes or criminal act that are committed for the interest of the corporation. Second, corporations let the crime acts happen. Third, the corporation does not take preventive steps or prevent a greater impact and does not ensure that certain acts are in compliance with the applicable laws and regulations in order to avoid a crime act.

In addition, PERMA does not only regulate a criminal liability conducted by one corporation involved on the basis of employment, but also can ensnare corporate groups and corporations in the merger, consolidation (acquisitions), the separation and in process of disperse. However, the corporation that has been dispersed after the occurrence of criminal acts cannot be punished. It is stipulated in Article 7 and Article 8.

For the handling of this case, the first thing to do is investigating the corporation or its officials as a suspect in the investigation and prosecution process either alone or with other suspects after the calling process. The summons consists of the name of the corporation; domicile; nationality of corporations; corporate status in a criminal case (witness / suspect / defendant); time and place of the investigation; and a summary of the alleged criminal act.

The formulation of the contents of the indictment was made according to the Law Number. 8 Year 1981 About the Book of Criminal Code, including:

  1. Corporate name, place, date of establishment and / or number of the articles of association / incorporation deed / regulation / document / agreement as well as the latest changes, domicile, nationality of Corporations, Corporate types, forms of activities / operations and identities of executives who represent; and
  2. A careful, clear, and complete description, , in regard to the indicted crime act, by mentioning the time and place of the committed criminal act was.

In the system of vindication, PERMA still refers to the verification system that exists in the Criminal Procedure Code and the legal form of special events which are set forth in other laws. PERMA also provides guidance to judges in deciding and sentencing the corporation or board or both of them directly.

On the other hand, concerning the abolition of the criminal authority demanding and run criminal act to remove the corporation in the event of expiry as the provisions stipulated in the Criminal Code. As stipulated in Article 22 PERMA No. 13/2016:

“The authority to prosecute criminal act and run criminal act to remove the Corporation since expired as the provisions stipulated in the Criminal Code.” Therefore, in accordance to the provisions of the authority demanded above remain valid until the case has entered the expiry of a case,

PERMA Number. 13/2016 also establishes mechanisms of restitution or compensation governed by the existing statutory or through a civil lawsuit as described in Article 20 It clearly states that “The losses suffered by the victim as a result of criminal act committed by the Corporation may be requested compensation through restitution mechanism according to existing statutory or through a civil lawsuit.”

Based on the the information, there are laws which govern corporate criminal liability but few cases are processed and decided in court. Due to the fact that the criminal acts should be proven through all actions performed by the company management. The corporation as a legal entity cannot be separated from the role; it becomes important for any loss and criminal liability in order to be eligible to run completely in the presence of PERMA Number. 13/2016.

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