A report by the Council of Europe's Group of States against Corruption (GRECO) shows that French legislation restricts prosecutors in investigating international corruption cases. The report, which the EU Observer writes was published on March 12 and approved by the French government, states that "France has severely restricted its jurisdiction and its ability to prosecute cases with an international dimension, which, given the country's importance in the international economy and the scale of many of its companies, is very regrettable."

The report concludes that under French law, prosecutors have no jurisdiction to prosecute foreign companies that have bribed French public officials abroad. GRECO states that "this provision makes it very difficult to prosecute acts of complicity that also include, for example, the instigation by the parent company in France of a corruption offence committed by a local branch abroad."

As summarized by Richard Cassin, who writes the excellent FCPA Blog, the problem according to GRECO is that

anti-corruption offenses committed abroad can only be investigated by French authorities at the request of the foreign prosecutors and following a complaint from the victim or his or her beneficiaries, or an official report by the authorities of the country where the offense was committed. And for good measure, French law also prohibits the prosecution of French companies for bribing French officials overseas. Taken together, GRECO says, the laws amount to "exceptional guarantees" to French companies that they won't be prosecuted for bribery abroad. As we said, it isn't pretty.

Groups such as Transparency International, a global organization that fights against corruption, find the state of France's law troubling. "As a leading economy, France should ensure that its cross-border investigations of bribery and financial crimes are properly resourced, independent and supportive of mutual legal assistance," said Jana Mittermaier, head of Transparency International's Brussels office.