CMS Expert Guide To Mandatory Reporting Of Criminal Offences For Companies And Their Responsible Persons in Montenegro

Any criminal offence that could result in a prison sentence of five years or more must be reported by the responsible person within a company. Most serious corruption-related offences—such as fraud in business operations, tax evasion, bribery, money laundering, abuse of corporate responsibility, embezzlement, and influence peddling—fall into this category. The specific prison term for an offence may vary depending on the circumstances set out in the law. For instance, under Article 264 of the Criminal Code, only tax evasion involving more than EUR 10,000 is punishable by more than five years in prison and a fine, illustrating the threshold for mandatory reporting.

The person who has become aware of the offence while performing his or her duties is responsible for reporting it, especially if the offence is punishable by five years or more of imprisonment.

The obligation to report covers both that an offence has been committed and the identity of the offender, if known.

The criminal offence is reported by filing a criminal complaint with the public prosecutor's office or the police.

If a criminal offence is not reported, the responsible person in a company can be prosecuted for failing to report an offence or an offender, punishable by up to 5 years’ imprisonment. The criminal liability of the responsible person may trigger the criminal liability of the company, if the responsible person had the intention of obtaining a benefit for the company, and the civil liability towards the injured persons or entities.

Some categories of persons –are exempt from the duty to report. These include defence counsel, doctor or religious confessor, spouses, and close family relations.

If a criminal offence and its perpetrator are reported to the authorities, the public prosecutor, assisted by the police, must prosecute if there is sufficient evidence, gathering evidence and initiating a criminal investigation to bring suspects before the court, with the aim of sentencing and confiscating unlawfully obtained benefits.

If the responsible person acted within their authority to benefit the company, or contrary to company policies or orders, both the individual and the company may face criminal prosecution and liability. The company may be fined up to one hundred times the damage caused or unlawful gain obtained.

Civil liability primarily applies to harmed parties, and both the company and defendants may also suffer reputational damage.

Once a criminal offence has been committed, it is an offence to provide assistance to the perpetrator. 

Any individual who assists or hides the perpetrator of a criminal offence or takes actions to prevent their discovery or assists them to avoid their sentence, may be punished by a fine or imprisonment of up to two years.

Anyone who helps the perpetrator of a crime punishable by more than five years in prison may face imprisonment of three months to five years.