Estonia

Anti-Corruption Network for Transition Economies OECD Directorate for Financial, Fiscal and Enterprise Affairs 2, rue André Pascal F-75775 Paris Cedex 16 (France) phone: (+33-1) 45249106, fax: (+33-1) 44306307 e-mail: Anti-Corruption.Network@oecd.org URL: http://www.anticorruptionnet.org

STATUS REPORT OF THE REPUBLIC OF ESTONIA UNDER THE BALTIC ANTI-CORRUPTION INITIATIVE

This is the final status report as submitted by the Estonian Ministry of Justice in March 2002.

The draft report was discussed at the “Review Meeting of the Status Reports on Legal and Institutional Measures to Fight Corruption”, held in Tallinn on 26-27 February 2002.

The assessment established by the reviewers on the basis of the draft report and discussions with the Estonian experts during the Tallinn meeting is enclosed.

Anti-Corruption Network for Transition Economies OECD Directorate for Financial, Fiscal and Enterprise Affairs 2, rue André Pascal F-75775 Paris Cedex 16 (France) phone: (+33-1) 45249106, fax: (+33-1) 44306307 e-mail: Anti-Corruption.Network@oecd.org URL: http://www.anticorruptionnet.org

STATUS REPORT OF THE REPUBLIC OF ESTONIA UNDER THE BALTIC ANTICORRUPTION INITIATIVE

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1. ASSESSMENT OF ESTONIA’S ANTI-CORRUPTION MEASURES AS DESCRIBED IN THE STATUS REPORT ESTABLISHED UNDER THE BALTIC ANTI-CORRUPTION INITIATIVE (BACI)

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2. STATUS REPORT ON LEGAL AND INSTITUTIONAL MEASURES TO FIGHT CORRUPTION

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I LEGAL FRAMEWORK TO FIGHT CORRUPTION A. PREVENTIVE MEASURES – PROMOTION OF ACCOUNTABILITY AND TRANSPARENCY 1. ETHICS IN THE PUBLIC SERVICE 1.1 ANTI-CORRUPTION ACT 1.2 CODE OF CONDUCT 2. PUBLIC PROCUREMENT AND PUBLIC SUBSIDIES, LICENCES, OR OTHER PUBLIC ADVANTAGES 2.1 PUBLIC PROCUREMENT 2.2 USE OF PUBLIC FINANCE 3. STATE AUDIT 3.1 INTERNAL AUDIT 3.2 EXTERNAL AUDIT 4. ACCESS TO INFORMATION 5. FISCAL TREATMENT OF BRIBES 6. MONEY LAUNDERING 7. CORPORATE ACCOUNTING AND AUDITING STANDARDS 7.1 PENALTIES 8. PRIVATE SECTOR INITIATIVES AND CIVIL SOCIETY INVOLVEMENT B. REPRESSIVE MEASURES 1. CRIMINAL LEGISLATION ON CORRUPTION A. ELEMENTS OF THE OFFENCE OF ACTIVE AND PASSIVE BRIBERY A.1 PROHIBITED ACTS A.2 THE NATURE OF THE BRIBE A.3 THE EXPECTED BEHAVIOUR FROM THE PUBLIC OFFICIAL A.4 THE CONCEPT OF AN OFFICIAL A.5 INTERVENTION OF THIRD PERSONS IN THE CORRUPTED TRANSACTION B. DEFENCES C. LIABILITY FOR ACTIVE AND PASSIVE BRIBERY D. SANCTIONS E. JURISDICTION F. STATUTE OF LIMITATIONS 2. MONEY LAUNDERING LEGISLATION RELATED TO CORRUPTION II INSTITUTIONAL FRAMEWORK TO FIGHT CORRUPTION 1. ENFORCEMENT RULES 2. INSTITUTIONAL RESOURCES 3. THE DETECTION OF BRIBERY OFFENCES 4. INTERNATIONAL ASPECTS OF ENFORCEMENT INTERNATIONAL ANTI-CORRUPTION INSTRUMENTS MUTUAL LEGAL ASSISTANCE EXTRADITION ANNEX I - ANTI-CORRUPTION ACT ANNEX II - CRIMINAL CODE CHAPTER 8 CRIMINAL OFFICIAL MISCONDUCT CHAPTER 7 ECONOMIC CRIMINAL OFFENCES ANNEX III - PENAL CODE

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Anti-Corruption Network for Transition Economies OECD Directorate for Financial, Fiscal and Enterprise Affairs 2, rue André Pascal F-75775 Paris Cedex 16 (France) phone: (+33-1) 45249106, fax: (+33-1) 44306307 e-mail: Anti-Corruption.Network@oecd.org URL: http://www.anticorruptionnet.org

CHAPTER 17 OFFENCES RELATED TO OFFICE ANNEX IV – PROVISIONS OF THE PENAL CODE ON JURISDICTION ANNEX V – CODE OF CRIMINAL PROCEDURE

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Anti-Corruption Network for Transition Economies OECD Directorate for Financial, Fiscal and Enterprise Affairs 2, rue AndrĂŠ Pascal F-75775 Paris Cedex 16 (France) phone: (+33-1) 45249106, fax: (+33-1) 44306307 e-mail: Anti-Corruption.Network@oecd.org URL: http://www.anticorruptionnet.org

1. Assessment of Estonia’s Anti-Corruption Measures as described in the Status Report Established under the Baltic Anti-Corruption Initiative (BACI) The general impression after examining the status report and meeting with the Estonian delegation is that Estonia has come a long way in creating a good legal basis for fighting corruption. Extensive work has been undertaken on the legislative side in a relatively short period. The challenge for the future will be to strengthen and improve measures for detection and enforcement.

I LEGAL FRAMEWORK TO FIGHT CORRUPTION1

A PREVENTIVE MEASURES Estonia has made considerable efforts in ensuring the existence of a reliable state system and public administration. For instance, significant preventive measures have been adopted. The Anti-Corruption Act provides the legal basis for the prevention of corruption. The Code of Conduct, which is included in the Public Service Act, sets out guidelines for the codes of conduct for the public administration and other bodies. The introduction of internal audit and control contributes to the reliability and transparency of state institutions and their accounting standards.

1. Ethics in the Public Service The Estonian Anti-Corruption Act provides comprehensive regulations concerning the obligations of public officials. Control and restrictions seem in principle to effectively cover all relevant areas of concern. It might be noted though, that the system of declarations of the economic interests of officials presumably generates a lot of information. The question then arises as to how this information is being assessed and used in practice.

3. State Audit The status report raises several questions with respect to the state audit regime. Clarifications and additional information provided to the examiners indicate that the Estonian authorities are in the process of developing state audit bodies and standards to a very satisfactory level.

Extensive training programmes have been initiated that aim at all levels of state auditing.

However, the continuation of work in this field would seem to depend on international

The structure of the assessment (headings, numbering) follows that of the Status Reports 1

Anti-Corruption Network for Transition Economies OECD Directorate for Financial, Fiscal and Enterprise Affairs 2, rue André Pascal F-75775 Paris Cedex 16 (France) phone: (+33-1) 45249106, fax: (+33-1) 44306307 e-mail: Anti-Corruption.Network@oecd.org URL: http://www.anticorruptionnet.org

assistance.

5. Tax Deductibility of Bribes The relevant tax laws do not expressly deny the tax deductibility of bribes. It is insufficient to not allow the deductibility of expenses declared as bribes. Indeed, entrepreneurs often hide such expenses behind deductions for a “commission of intermediary” or “consulting services”. The Estonian authorities are therefore recommended to establish a clear prohibition against the tax deduction of bribes and provide tax officials with the practical power and means to investigate suspicious cases.

7. Corporate Accounting and Auditing Standards The accounting and auditing standards and sanctions are generally satisfactory. The examiners point out the need to make more efforts to increase awareness of corruption issues in the auditing and accounting professions.

8. Private Sector Initiatives and Civil Society Involvement The important work done by the Jaan Tõnisson Institute and the Estonian Law Centre has secured the involvement of independent bodies in the fight against corruption. However, there is a need to consider further involvement of business and labour confederations and certain other relevant bodies in the anti-corruption work.

Communication and co-operation with the private sector might prove an important dimension in the effort to combat corruption. It is important to create a climate of trust and reliability between the private and the public sectors. In particular, the police and prosecution authorities could be important points of contact with the private sector.

It is therefore recommended that Estonia reinforce the third pillar in the fight against corruption (apart from prevention and enforcement), by raising anti-corruption awareness and providing anti-corruption education programmes.

Moreover, bearing in mind that corruption and corruption-related crimes are often unperceived, it is worthy to conduct detailed criminological surveys to identify the prevalence of corruption in various public sectors.

B REPRESSIVE MEASURES Estonia has developed a new Penal Code representing a significant part of its overall and coherent legal reform and which is in line with international standards and requirements.

However, the new Penal Code has not yet come into effect; thus raising the question of the practical application of some provisions of the ratified international instruments.

For example, Estonia has ratified the Council of Europe’s Criminal Law Convention, which

Anti-Corruption Network for Transition Economies OECD Directorate for Financial, Fiscal and Enterprise Affairs 2, rue André Pascal F-75775 Paris Cedex 16 (France) phone: (+33-1) 45249106, fax: (+33-1) 44306307 e-mail: Anti-Corruption.Network@oecd.org URL: http://www.anticorruptionnet.org

establishes, among other things, the obligation to sanction legal persons. However, the current Estonian legal system does not address this matter.

Bribery of Foreign Officials Removal of the provision criminalising bribery of foreign officials in the new Penal Code raises a major concern as regards the repressive measures designated for acts of corruption.

According to the Estonian authorities, the offence of bribing an official covers both domestic and foreign public officials. Specifically, there are concerns about the concept of “official”, and the possible limitations of the Estonian legislation. According to the Estonian authorities, the concept of a civil servant embraces foreign public officials. However, this is not explicitly mentioned in the law, providing difficulties for interpretation.

Money Laundering Criminalizing negligent money laundering should be considered.

II INSTITUTIONAL FRAMEWORK TO FIGHT CORRUPTION Estonia has a number of institutions involved in the prevention, detection and repression of corruption.

The examiners recommend that the Estonian authorities consider making further improvements to the multi-disciplinary approach to combating corruption. Further training and specialising in the detection and investigation of acts of corruption is seen as a vital part of the future work.

International experiences should be taken into account when designing enforcement strategies. Training in financial investigation is considered a key element in the combating of serious profit motivated crime, and thus the examiners strongly recommend the Estonian authorities to take steps for the improvement of skills in this regard.

To reinforce the anti-corruption efforts and to ensure a streamlined approach, Estonia could also consider establishing a co-ordinating body, which could provide overall guidance and recommendations on the development of sector anti-corruption strategies and action plans (aimed at the most corruption prone areas).

2. Status Report on Legal and Institutional Measures to Fight Corruption I LEGAL FRAMEWORK TO FIGHT CORRUPTION A. Preventive Measures – promotion of accountability and transparency 1. Ethics in the public service 1.1 Anti-Corruption Act The Anti-Corruption Act (Annex I) provides the legal bases for the prevention of corruption and prosecution of officials involved in corruption. The first version of the Anti-Corruption Act was passed by the Parliament in January 1995. The revised version of the Act was adopted on January 27, 1999 and came into force on March 1, 1999. The means to prevent corruption are the following: 1) Declaration of the economic interests of officials and disclosure of declarations of economic interests in the cases prescribed by law; 2) Restrictions on employment and activities; 3) Procedural restrictions.

According to the Act an official is bound to submit his/her declaration of economic interests that contains the data about his/her immovable property, vehicles, the holding shares and other securities. The data about debts, contracts of suretyship and other proprietary obligations, in case the debt exceeds six months salary, should be submitted also. In addition to that the additional sources of income that exceed 10 per cent of the previous six months salary should be declared. Bank accounts, taxable income and dividends belong under declaration.

The elected representatives and public officials an obligation to submit a declaration of economic interests every year one month after expiry of the term for submission of income tax returns or within one month after the date of commencement of work in an office. If the composition of the property change exceeds 30 per cent or 100 000 EEK, a new declaration should be submitted at least one month after the change in economic status. The declarations of economic interests are submitted to and hold by the head of the institution. The holder of the declaration may inspect it on his/her own initiative and is obliged to inspect it in case of suspicion in corruption. The declarations of certain high-ranking officials will be published in the Official Journal.

According to the Act, several restrictions on employment and activities were established.

Restriction on employment and activities means a restriction to operate as an undertaking, hold a second job or work in a relationship of direct subordination with a close relative or close relative by marriage, while in public service.

According to the Act an official can not be a member of the directing or supervisory body of a company, except the representative of the state, a local government or legal person in public law of a company with the holding of the state, local government or legal person in public law. An official may operate as an undertaking, be a partner of a general partnership or general partner of a limited partnership only with the permission of the person or agency who has appointed or elected him or her to office or hired under an employment contract if such activity does not hinder the performance of duties of employment or damage the reputation of the position or office.

A prohibition to perform acts, which enable to receive income derived from corrupt practices, is interpreted as procedural restrictions. The main procedural restrictions are: 1) Prohibition to take rewards or higher pay for operations without provisions to do so;

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2) Obligation to notify the immediate superior or head of the agency and the police in writing of any offering, giving or acceptance of a bribe; 3) Prohibition to engage in self-dealing or conclude other transactions of similar nature or involving a conflict of interests.

A conflict of interest occurs if an official, in the course of his or her duties of employment, is required to make a decision or participate in the making of a decision which significantly influences the economic interests of the official, his or her close relatives or close relatives by marriage or legal persons.

According to the Act an official shall not solicit, in connection with his or her duties of employment, gifts or other benefits made or granted by persons to him or her, his or her close relatives or close relatives by marriage. An official shall also not accept gifts or consent to the benefits which are made or granted to him or her, his or her close relatives or close relatives by marriage, and the acceptance of which may directly or indirectly influence the impartial performance of his or her duties of employment or service.

Accordingly to the Act, an official shall refrain from acts of corruption or entry into relationships involving the risk of corruption. In case of possible marriage which creates a danger of corruption, an official who has a relationship involving the risk of corruption or who creates such relationship or receives a proposal to do so, shall promptly notify his or her immediate superior or a person or body with employment or appointment authority or a body with election authority thereof in writing. To terminate the relationship, he or she shall apply for the relocation of himself or herself or the other party to another position, or for the conclusion of transactions to be entrusted to another person, or shall take other steps to terminate the relationship involving the risk of corruption which has been or may be created.

Failure to give notification of a relationship involving the risk of corruption shall bring about liability pursuant to law mentioned above.

Anti-corruption Act also provides a duty of official to give notification of bribery. An official is required to notify the immediate superior or head of the agency and the police in writing of any offering, giving or acceptance of a bribe, which becomes known to him or her. Failure to give notification of an offering, giving or acceptance of a bribe pursuant to the procedure provided for in this Act shall be the basis for the release of the official in the public service from service.

On 7 June 2001 the Parliament adopted the Anti-Corruption Act and the Criminal Code Amendment Act. The Amendment Act put in order the regulation of collecting, controlling and depositing of declarations of economic interests. The Act also provides for compensations of damage caused by corruptive activities (Section 27-1).

Furthermore, the State Liability Act which provides the bases for, and procedure for the protection and restoration of rights violated upon the exercise of powers of public authority and performance of other public duties and compensation for damage caused (state liability), was enacted on 1 January 2002.

1.2 Code of Conduct With adoption of Anti-Corruption Act the Public Service Code of Ethics was enacted into the Public Service Act. A public servant shall perform his or her duties of employment in an accurate, timely and conscientious manner, expediently and without self-interest, pursuant to the public interest. The duties of employment are determined in Public Service Act and other Acts, regulations and job descriptions, and other legislation. A public servant shall also perform his or her duties pursuant to the public service code of ethics set out in Annex 1 to this Act and other codes of ethics established within the administrative agency.

The Public Service Code of Ethics 1. An official is a citizen in the service of people.

2. The activities of an official shall be based on respect for the Constitution of the Republic of Estonia provided for in the oath of office.

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3. An official shall adhere, in his or her activities, to the legally expressed will of politicians who have received a mandate from the citizens.

4. Public authority shall be exercised solely in the public interest.

5. Public authority shall always be exercised pursuant to law.

6. The exercise of public authority shall always involve liability.

7. The exercise of public authority is, as a rule, a public activity.

8. An official shall be prepared to make unpopular decisions in the public interest.

9. A person exercising public authority shall endeavour to achieve as broad participation of citizens in the exercise of authority as possible.

10. An official shall always, in his or her activities, subject departmental interests to public interest.

11. An official shall be politically impartial in his or her activities.

12. An official shall make decisions based on public and generally understandable criteria.

13. An official shall avoid creating a situation that arouses or may arouse suspicion with regard to his or her impartiality or objectivity in considering matters under suspicion.

14. An official shall treat property entrusted to him or her economically, expediently and prudently.

15. An official shall use information, which becomes known to him or her through official duties solely in the public interest.

16. A person exercising public authority is characterised by honesty and respect for the public and co-employees.

17. An official shall be polite and helpful when communicating with people.

18. An official shall be respectable, responsible and conscientious.

19. An official shall do his or her best in the public service by constant individual development.

20. An official shall facilitate the spread of the above principles in every way An official is required to notify the immediate superior or head of the agency and the police in writing of any offering, giving or acceptance of a bribe which becomes known to him or her.

Failure to give notification of an offering, giving or acceptance of a bribe pursuant to the procedure provided for in Anti-Corruption Act shall be the basis for the release of the official in the public service from service.

Estonia has adopted Code of Conducts for members of professions especially exposed to corruption (e.g. a lawyers’ Code of Conduct of Estonian Bar, internal auditors).

2. Public procurement and public subsidies, licences, or other public advantages 2.1 Public procurement The Government in March 1996 set up the Public Procurement Office (PPO) within the structures of the Ministry of Economic Affairs. The PPO is responsible for co-ordination of activities relating to public procurement (notably supervising the compliance of procurements with the relevant legislation (on 1st April 2001, a new Public Procurement Act came into force, providing for new public procurement procedures and the rights and obligations of subjects involved in public procurements). It also gives ad hoc consultations and administrates a database of all tenders.

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According to the Public Procurement Act, a tenderer who receives an invitation-to-tender and who finds that the contracting authority has violated the tenderer’s rights or damaged the tenderer’s interests in the procedure (before acceptance of the successful tenderer) may file a protest with the Public Procurement Office. The Act consecrates the supervisory function of the PPO, leaving the decision making power to administrative courts to declare a tender illegal or affected by corrupt-like behaviour (until the 1st of April 2001, tenderers could also introduce complaints to an Arbitral tribunal). Since April 2001, only administrative and civil courts will further be responsible for examining the validity and execution of contracts. Fines are foreseen by the new Act for violation of public procurement procedures.

According to the new law, the PPO can require access to documents when reviewing protests, it can suspend or cancel a tendering procedure if an irregularity is detected, it can file an appeal with an administrative court in the tendering procedure etc. In practice, the Director of the PPO, the deputy Director and an official of the same agency authorised by the Director makes the corresponding decisions.

There are special rules ensuring transparency and equality in the tendering of public contracts in Public Procurement Act. The procedure provided for in this act applies to public procurements the value of which is: 1) 100 000 EEK or more upon the purchase of goods or contracting of services (hereinafter the annual sum together with value added tax); 2) 500 000 EEK or more upon contracting for construction work; 3) 500 000 EEK or more upon contracting for draft legislation; 4) 500 000 EEK or more upon purchasing of things or contracting for services by a state agency, a profit-making state agency, a city or local government, or a local government agency from a penal institution or a company founded by the state for the administration of the production units of a penal institution; 5) 100 000 EEK or more upon organising a competition for ideas, including the competition awards and amounts payable to the participants in the competition; 6) 2 million EEK or more upon the purchase of things or contracting of services or 4 million EEK or more upon contracting for construction work by the undertaking if the state or a local government has granted a special or exclusive right to the undertaking pursuant to the Competition Act and if the purchasing of things or contracting for services or construction work is necessary for the exercise of the special or exclusive right, or if the state, a local government or a legal person in public law jointly or separately hold a majority of votes or more than 50 per cent of the shares in the undertaking directly or through other persons and if the area of activity of the undertaking is either the construction or operation of permanent networks with the intention to provide services relating to the production, transportation, transmission or distribution of water, gas, electricity or thermal energy to the public, or the use of a geographic area in order to prospect for or extract fuels or enable air or water transport undertakings to use an airport, port or other terminal structure, or the operation of networks enabling the public to use services relating to railway, tramway, trolleys or bus transport, automatic systems or cable distribution, or the construction or operation of public telecommunications networks for ensuring one or more telecommunications services.

The announcements of the tendering are printed in official bulletin.

According to the Public Procurement Act, persons who have been in a relationship with a tenderer which may give rise to justified doubts as to the persons’ objectivity shall not be representatives of or experts for contracting authorities (State).

2.2 Use of public finance The most relevant acts regulating the use of public finances are the State Budget Act, State Assets Act, Public Procurement Act and regulations given on the basis of these laws. Public Procurement Act (enforced April 1, 2001), which aim is to ensure the most rational and Status Report Estonia page 10

economical use of financial resources intended for public procurement, provides for prevention of unlawful use of public finances. To control the use of public finances the State Audit Office is created by the Estonian Constitution and its aim is to audit: 1) the economic activities of state agencies state enterprises and other state organisations; 2) the use and preservation of state assets; 3) the use and disposal of state assets which have been transferred into the control of local governments; 4) the economic activities of enterprises in which the state holds more than one-half of the votes by way of parts or shares, or whose loans or contractual obligations are guaranteed by the state.

The mechanisms are in place to prevent the unlawful use of public finances is police, prosecutors and courts. The legal chancellor supervises the public sector.

3. State audit 3.1 Internal audit As regards the prevention of corruption the introduction of internal audit and internal control has very important role. The Parliament (Riigikogu) adopted on July 7, 2000 the Government of the Republic Act Amendment Act. This amendment ensures the introduction of the system of internal control in ministries, local governments, county governments and state agencies.

Furthermore, the Government of Republic Regulation No 329 (3/10/2000) stipulates the principles for carrying out internal audits in government agencies and state agencies administered by them, organisation of work and reporting procedures of a person responsible for internal audits or of the respective structural unit. It establishes also the additional requirements set to internal auditors employed by agencies of executive power.

The aim of an internal audit is to evaluate and analyse the system of internal control of an executive public authority, as well as to assess its efficiency and compliance with established requirements. Sections 92š - 92³ of the Government Act of the Republic constitute the internal control and internal audit system. An internal audit system is a comprehensive set of measures implemented in the directing of government agencies and state agencies administered by government agencies in order to achieve lawfulness and purposefulness and to ensure: 1) Compliance with legislation; 2) Protection of property from damage caused by squandering, non-purposeful use, incompetent management, etc.; 3) The purposefulness of the activities of the agencies in the performance of their duties; 4) Collection, storage and publication of truthful, updated and reliable information concern the activities of the agencies.

The general rules for the conduct of internal audits in government agencies and in state agencies administered by government agencies, including provisions for reporting, are established by the Government of the Republic The head of a government agency or a state agency administered by a government agency shall implement the internal audit system in the agency and is liable for the efficiency of the system.

In order to conduct an internal audit, a person responsible for the internal audit shall be appointed and, if necessary, a corresponding structural unit shall be formed in direct subordination to the head of the government agency or the state agency administered by a government agency.

Together with the Government of Republic Act Amendment Act the State Public Servants Official Titles and Salary Scale Act Amendment Act was adopted by which a position of an Status Report Estonia page 11

internal auditor was introduced in government and state agencies.

The auditing effort is divided between two authorities: the Financial Control Department (FCD of the Ministry of Finance and the State Audit Office (SAO).

The Financial Control Department (FCD) is at the top of the internal audit system including financial control of all government organisations. The mechanism is based on a pyramidal scheme. All bodies and agencies working under the ministries and county governments are obliged to designate independent persons to perform auditing functions (in practice it is usually the head of the internal audit division which is staffed with a variable number of persons).

These persons are preparing reports, which are centralised by the ministries and county governments. At this level, internal audit units that are to be centralised by the FCD then prepare intermediary reports.

The FCD comprised an Audit Division (12 persons) whose staff has the power to carry out extraordinary direct audits at any of these levels (the decision is to be taken by the Secretary General of the Ministry of Finance). But generally, direct audits take place on the basis of an annual plan and according to a best practice manual. FCD auditors can organise interviews and request the presentation of documents, but they have no investigative powers.

The Ministry of Finance started the project Good practice in internal audit in May 2000. This project helps to create and introduce the system of internal audit in the Estonian public sector.

The project proceeds from the necessity to harmonise, on one hand, the activities of the Estonian public sector with the norms and practices of the European Union, and on the other hand, to improve substantially with the existing resources, the administrative capacity of the Estonian public sector, as well as to improve the control over Estonian national resources.

3.2 External audit The State Audit Office (SAO), which keeps legal continuity from the pre-war times of the first Republic of Estonia, is an independent institution foreseen by the Constitution. It was reestablished on 1st November 1990 on the basis of the State Audit Act to perform functions.

The Auditor General (AG) is appointed by the Parliament for a term of five years on the proposal of the President and he/she enjoys constitutional immunity. The two-thirds majority decision-making process also secures the independence and impartiality of the SAO. Both the FCD and SAO can carry out direct audits in governmental organisations on certain occasions, but they rely in general on the work carried out and data collected by the auditing body of each authority.

The performance of audit results from a mixture of centralism and decentralisation. It is initiated by the Heads of institutions and depends: plan -

on the areas of priorities within each structure/substructure according to their own on national audit programmes drafted by the Auditor General

The SAO officer involved in audit is responsible for the accuracy of his report and objectivity and soundness of proposals resulting from the audit. In its activity, the SAO, as well as the FCD and internal auditors in government organisations, take internationally recognised accounting and audit standards into account.

For the time being, the number of independent licensed auditors is very low. The required independence is only seldom guaranteed. An EU Phare project on-the-spot check (until year Status Report Estonia page 12

2003) includes the training of internal auditors.

4. Access to information Public Information Act (2001) was adopted to guarantee the transparency of public power.

Public Information Act provides an access for citizens and media to obtain information held by local and state authorities. Accordingly to the Act there are types of internal office information (restricted information), which can not be transmitted to citizens and mass media. Information on corruption collected within the framework of criminal investigation is restricted until trial.

In Estonia the public is informed of the dangers of corruption as well as the legal norms established to repress this phenomena through mass media. The public can report complaints and suspected cases to the police through round the clock telephone lines. The information is verified. The confidentiality of the source is ensured and the anonymous information accepted.

In the recent years the participation of third sector in the fight against corruption has increased.

There is freedom of the press in Estonia. The law provides for the allocation of licences for private broadcasters but no licence, permit or registration is required to set up a newspaper.

Scandinavian companies control a vast majority of domestic media, but it has not decreased editorial independence.

There are a small number of active independent freelance journalists in Estonia. Most of the journalistic staff have been working for media companies which, regardless of their foreign ownership, have easy to identify, unequivocal political profiles. Some particular journalists are known for reporting actively on corruption affairs. The media follow closely and report widely main cases relating to financial scandals and/or corruption. One can also observe a tendency of the press to look deeper in the activities of the police.

5. Fiscal treatment of bribes Estonian legislation does not explicitly prohibit tax deductibilty of bribes, but deductible expenses are enumerated in detail in Income Tax Act. The Act provides lists of expenses that are tax deductible, which do not include bribes. Chapter 6 “Deductions from Business Income� lists the deductions from business income. These deductions do not include bribes or similar payments. Subsection 1 of section 32 states that all certified expenses incurred by a taxpayer in relation to business during a period of taxation may be deducted from the taxpayer's business income. Subsection 2 specifies that expenses are related to business if they have been incurred for the purposes of deriving income from taxable business or are necessary or appropriate for maintaining or developing such business and the relationship of the expenses with business is clearly justified. The condition that the expenses have to be certified excludes possibility for deductibility of bribes. According to the point 3 of subsection 2 of section 51 of Income Tax Act the expenses are not related to the business and company shall pay income tax if the taxpayer does not have a source document in compliance with the requirements prescribed in legislation regulating accounting.

The burden of proof in bribery cases is the same as in other tax matters. Legal persons are obliged to provide all necessary information. The Tax Fraud Investigative Centre has been granted powers of surveillance and preliminary investigation and is operational from the 1 April 2001.

The new Taxation Act, which increases the power of the Tax Fraud Investigative Centre to carry the preliminary investigation of tax fraud, was adopted by the Parliament on 20 February 2002. This Act will become effective 1 July 2002.

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6. Money laundering The Money Laundering Prevention Act determines inter alia the obligations of the credit and financial institutions and other listed undertakings to identify all persons who open an account and carry out transactions above a certain sum (EEK 200,000 for non-cash transactions and 100,000 for cash transactions) or below these thresholds if they suspect that the money is derived from criminal activities. These institutions have also the obligation to notify the Financial Intelligence Unit (FIU) of any situation, which might be an indication of money laundering, as well as of all suspicious transactions. The FIU is part of the Police. FIU functions are to collect, register, process and analyse information received, to conduct investigations into money laundering, improve prevention and detection of money laundering and inform the public thereof, and to co-operate with credit and financial institutions, undertakings and police authorities in the prevention of money laundering (section 19). Natural persons failing to comply with these requirements are punished by the current Criminal Code (CC) (1992, enforce until September 1, 2002) section 148-8.

Pursuant to the Money Laundering Prevention Act, the FIU has the right to request additional information concerning a suspicious transaction or legal acts pertaining thereto from the credit or financial institution if there is good reason to suspect money laundering. The FIU can share significant information received from financial institutions with the law enforcement authorities on its own initiative or upon request and it has the right to exchange information with foreign authorised institutions whose responsibilities are similar. The FIU shares information with pretrial investigative authorities, the Prosecution Office and the courts for the purposes of preventing and sanctioning money laundering or criminal offences related thereto, and to facilitate pre-trial investigations.

7. Corporate accounting and Auditing Standards The purpose of the Accounting Act (RT I 1994, 48, 790; 1995, 26, 355; 92, 1604; 1996, 40, 773; 42, 811; 49, 953; 1998, 59, 941; 1999, 55, 584; 101, 903; implemented 1 January, 1995) is to create the legal bases and establish general requirements for organising accounting and reporting in the Republic of Estonia pursuant to internationally recognised accounting and reporting principles.

An accounting entity shall: 1) keep accounting records - organise its accounts in such a way as to ensure relevant, objective and comparable information which has been recorded and reported in accordance with generally accepted accounting principles; 2) document all its business transactions; 3) on the basis of source documents or summary documents prepared on the basis thereof, post and record all its business transactions in accounting ledgers and journals; 4) prepare and present annual reports; 5) preserve accounting documents.

Business transactions are recorded on an accrual basis. An accounting entity shall, within six months after the end of its financial year, submit a signed copy of the entity’s annual report to the commercial register for permanent preservation. Accounting entities shall preserve source documents for seven years. Accounting ledgers, journals, contracts, financial statements, reports and other business documents which are necessary for reconstructing business transactions during audits (correspondence with debtors, business plans supporting loan applications, etc.) shall be preserved for ten years. Business documents relating to long-term rights and obligations shall be preserved for seven years after the expiry of their terms of validity. Personal liability for offences relating to accounting is provided by the Establishment of Personal Liability for Accounting and Correctness of Accounting Information Act (RT I 1993, 43, 620; 1996, 6, 101; implemented 20 July, 1993).

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An auditor is liable for damage wrongfully caused to an undertaking or third party through an incorrect audit of an annual report. If several auditors cause such damage, they are solidarily liable. According to the Authorised Public Accountants Act (RT I 1999, 24, 360; entered into force July 1, 1999) an auditor shall be independent and impartial in the professional activities of auditor and shall operate solely pursuant to law, the auditing rules, the requirements of professional ethics, and the resolutions and recommendations of the bodies of the Board of Auditors.

The Accounting Act extends to all legal persons in private law and sole proprietors registered in Estonia, to foreign legal persons who have a registered branch or other permanent establishment in Estonia and to legal persons in public law founded in Estonia, with the exception of the Bank of Estonia. The procedure for accounting and reporting for taxation purposes is established by other legislation.

7.1 Penalties Under Chapter 7 (economic crimes), sections 148-4 (incorrect organisation of accounting), 1485 (falsification, concealment or destruction of accounting data) and 148-6 (submission of incorrect data) of the current CC, a person is subject up to two years imprisonment, fine or deprivation of the right of employment in a particular position or operation in a particular area of activity (Annex II).

Section 148-13 provides liability of auditor who shall be punished by a fine or up to one-year imprisonment, if auditor intentionally presents incorrectly the facts that become known to him or her during the audit.

In new Penal Code (PC) (will be enforced September 1, 2002) accounting offences are the part of the offences relating to companies Under the Chapter 21 (Economic Offences)(Annex III).

Failure to submit or incorrect submission of results of audit or special audit (section 379), incorrect presentation of financial status (section 381), submission of incorrect information to auditor or person conducting special audit (section 382) are punishable up to three years imprisonment or pecuniary punishment.

Other relevant crimes under the new PC are counterfeiting of documents, seals or blank document forms (section 344) which is punishable by a pecuniary punishment or up to one year of imprisonment, use of counterfeit documents, seals or blank document forms (section 345) is punishable by a pecuniary punishment or up to 3 years’ imprisonment. If a legal person commits the same acts, offences are punishable by a pecuniary punishment. Destruction, damaging, theft or concealment of an official document, seal or stamp (section 346) is punishable by a fine or detention.

8. Private sector initiatives and civil society involvement In recent years the participation of tertiary sector in the fight against corruption has increased.

The business paper “Äripäev” has been very active in handling topics on corruption. The banking sector in Estonia is relatively well developed and strong. Approximately 85 per cent of assets of these banks belong to foreign credit legal institutions. There is also noticeable growth of awareness of the money-laundering problem as well as of other crimes, including corruption, connected with money laundering. The Estonian Banking Association is co-operating very actively with the Financial Intelligence Unit as well as with the police forces in implementing the provisions of the Money Laundering Prevention Act. The EBA also participates in the work of the Financial Fraud Working Group of European Banking Federation.

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Since the adoption in 1996 of specific legislation on Non-Governmental Organisations (NGOs) and foundations, approximately 1300 to 1500 NGOs and foundations have been established in Estonia. One of the most influential and opinion making NGOs in Estonia is the Jaan Tõnisson Institute (hereafter JTI). The JTI started dealing with the phenomenon of corruption in 1998 and created a corruption research centre. It now acts as the Estonian Chapter of Transparency International and produces an annual report on corruption in Estonia. In 2000 the society Corruption Free Estonia, a coalition for developing co-ordinated activities in order to combat corruption, has been founded on the initiative of the JTI. It has been established on the basis of the a/m law on NGOs and gathers the representatives of state institutions, local governments, other NGOs and media. The aim of this society is to raise public awareness, to inform about the essence and danger of corruption and to increase the level of responsibility of state officials and politicians.

Another NGO, which is playing a significant role, is the Estonian Law Centre (ELC). It was established 1995 with funds of the World Bank in order to provide a training structure for a variety of civil servants (including members of the judiciary and those responsible for the drafting of legislation). The ELC has also contributed to the development of professional ethics.

It also provides legal services. The Centre has progressively strengthened its legitimacy and nowadays acts like an Estonian public institution, notably thanks to strong partnerships with the Supreme Court, the University of Tartu etc. The ELC has also established various working groups screening the functioning of Estonian institutions and society at large. One group is dealing with corruption.

Estonia has a corruption combating programme (Development of corruption combating methods in a society of transitional period) initiated by Estonian Law Centre Foundation (Eesti Õiguskeskus) in year 1999. Programme is planned for 2 years. Programme aims to analyse existing methods on combating corruption, increase public awareness of corruption, clear out corruption-dangerous domains and evaluate weather existing legal framework is sufficient for successful corruption combating. Foreign experience in fighting corruption and its possible acceptability in Estonia is researched as well.

The Institute Jaan Tõnisson (Foundation) ran the programme ”Raising public awareness about corruption in Estonia” in 1998-1999. The programme consisted of conferences, sociological researches and interviews and training of journalists.

B. Repressive measures 1. Criminal legislation on corruption a. Elements of the offence of active and passive bribery The new PC was adopted by the Parliament on 6 June 2001 and it will enter into force on 1st September 2002. The PC introduces criminal liability of legal persons and liability of foreign officials and international organisations. This Code foresees punishments for passive corruption and corruption crimes in the private sector, also criminalises the obtaining of nonmaterial benefits as well as promises accepted by public officials in favour of a third party.

a.1 Prohibited Acts Chapter 8 of the current CC (Annex II), sections 164, 1641, 165 and 1651 apply to the giving, arranging and accepting of a bribe to a variety of persons who have an official position in an agency, enterprise or organisation, based on any form of ownership, and to whom administrative, supervisory, managerial, operational or organisational functions, or functions relating to the organisation of the movement of tangible assets, or functions of a representative of state authority, which have been assigned by the state or the owner.

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Section 1651 of the current CC and section 298of the new PC (Annex III) punish whoever gives a bribe, while section 297 of the new PC punishes whoever grants a gratuity. The offence covers the acts of offering or promising. Court practice indicates that giving bribe covers also the acts of offering or promising.

Attempt and conspiracy The aiding and abetting, incitement and authorisation of an act of bribery are criminalised.

Complicity is provided for in section 17 of the current CC. An abettor or instigator is a person who induced another person to commit a crime; and an “aider” is a person who accomplices with advice, conduct, by giving the instrument or means, by withdrawing the obstacle or the creation of opportunity, or a person who promised the concealment of offender, instruments or means, traces of crime or proceeds derived from crime. Section 15 of the current CC provides that “An attempt is an intentional act the purpose of which is to commit an offence, if the crime was not accomplished by reason not depending on the will of offender”.

a.2 The Nature of the Bribe The advantage: section 1651 deals with a “bribe” and section 164 on passive domestic corruption with “property, property rights or other property benefits as a bribe”. This definition of a bribe is also applicable to sections 165, 1651 and 1641. This does not cover non-tangible “other advantage”.

Section 298 of the new PC deals with a “bribe” and section 297 with a “gratuity” while section 294 on passive bribery and section 293 on acceptance of gratuities deal with “property or other benefits”. This encompasses both material and non-material benefits, as the “other benefits” are no longer qualified as proprietary ones. All benefits, whatever their value, are covered.

a.3 The expected behaviour from the Public Official In both Codes, actions and omissions are covered. Section 164 of the current CC provides that the offence is committed “for the performing or refraining from performing an act in the interests of the person who gives the bribe, and the official is required to perform or can perform such act”. Section 294 of the new PC (passive corruption) deals with “an unlawful act which the official has committed or which there is reason to believe that he or she will commit, or for an unlawful omission which he or she has committed or which there is reason to believe that he or she will commit” and section 293 (acceptance of gratuities) with “a lawful act (…) or for a lawful omission (…)”.

Small facilitation payments are covered and the offence is committed even if the bribe has not in practice influenced the decision of the public official.

Anti-corruption Act prohibits the acceptance of remuneration or more than adequate remuneration. An official who is required to provide services or make decisions without charge shall not demand or accept remuneration therefor in money, in kind or as a favour. An official who is required to provide services pursuant to the official procedure for a specific remuneration in money, shall not demand or accept remuneration therefor different from the remuneration set out in the rates or price lists.

Section 25 provides the conflict of interest as follows: (1) A conflict of interest occurs if an official, in the course of his or her duties of employment, is required to make a decision or participate in the making of a decision which significantly

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influences the economic interests of the official, his or her close relatives or close relatives by marriage or legal persons, if the legal person is: 1) a general partnership, the partner of whom the official, his or her close relative or close relative by marriage is; 2) a limited partnership, the general partner or limited partner of whom the official, his or her close relative or close relative by marriage is; 3) a private limited company, the shareholder or member of the management board or supervisory board of which the official, his or her close relative or close relative by marriage is; 4) a public limited company, the shareholder or member of the management board or supervisory board of which the official, his or her close relative or close relative by marriage is; 5) a commercial association, the member of the management board or audit committee of which the official, his or her close relative or close relative by marriage is; 6) other legal person in private law, the member of the directing or supervisory body of which the official, his or her close relative or close relative by marriage is.

(2) An official whose duty is to participate in the making of common decisions specified in subsection (1) of this section is required to notify promptly a body concerned and his or her immediate superior or a person or body with the employment or appointment authority thereof and forego the making of the decision. The person or body, who has designated an official as a member of a body making common decisions, may designate another person for the one-time substitution of the official.

(3) An official who is competent to make decisions specified in subsection (1) of this section solely, is required to remove himself or herself from making the decision and notify his or her immediate superior of a conflict of interest; the immediate superior shall designate another official to make the decision.

(4) In this section, a decision does not mean legislation of general application.

Section 26. Restriction on acceptance of gifts (1) An official shall not solicit, in connection with his or her duties of employment, gifts or other benefits made or granted by persons to him or her, his or her close relatives or close relatives by marriage.

(2) An official shall not accept gifts or consent to the benefits which are made or granted to him or her, his or her close relatives or close relatives by marriage, and the acceptance of which may directly or indirectly influence the impartial performance of his or her duties of employment or service.

(3) Gifts received in violation of the restrictions provided for in subsections (1) and (2) of this section shall belong to the employer of the corresponding official, unless otherwise provided by an international custom or diplomatic etiquette.

a.4 The Concept of an Official Chapter 8 in the current CC replies for Criminal Official Misconduct and for the matters of corruption and other related crimes provides the definition of “official� as follows: “An official is a person who has an official position in an agency, enterprise or organisation based on any form of ownership and to whom administrative, supervisory, managerial, operational or organisational functions, or functions relating to the organisation of movement of tangible Status Report Estonia page 18

assets, or functions of a representative of state authority have been assigned by the state or the owner”.

However, only officials listed in Anti-Corruption Act could be taken to responsibility for act of corruption itself. These officials are state or local government officials, who has an official position and also: members of the Parliament, the President of the Republic; members of the Government of the Republic; the Chief Justice and justices of the Supreme Court; the Chairman and members of the Board of the Bank of Estonia, the President of the Bank of Estonia; the Commander (Commander-in-Chief) of the Armed Forces; the Auditor General; the Legal Chancellor; heads of foreign missions of Estonia; the State Secretary; county governors; the Chief Public Prosecutor and prosecutors; judges of administrative, county, city and circuit courts; members of rural municipality and city councils; members of rural municipality and city governments, city district elders; members of administrative councils of rural municipality districts and city districts; notaries; police officers; bailiffs, prison officers and probation officers; officers of the armed forces, armed forces officials, border guard officials, rescue service officials, and officials of the National Defence League; the Commander of the National Defence League, members of the General Staff and central bodies of the National Defence League, and heads of units of the National Defence League and members of the bodies thereof; members of the management boards and supervisory boards of companies with state participation; members of the management boards and supervisory boards of companies with local government participation; members of the management boards and supervisory boards of companies with the participation of a legal person in public law; members of a body making decisions on transfer of state assets or municipal property or property of other legal persons in public law.

After the discussions in the Parliament (shorthand record 17 October 2000) the offence of bribery of a foreign public official is not separately regulated in the new PC due to the reason that it is covered by bribery offences, as the officials are treated alike. The new PC does not draw a distinction between the offences of "giving bribe" and "giving bribe to officials of foreign States and international organisations". Section 288 provides the definition of public official, which covers also foreign public officials.

a.5 Intervention of third persons in the corrupted transaction Bribery through intermediaries is provided for active bribery as well as for passive bribery in Section 1641. However, this offence is not defined in the current CC Section 164-1 (and sections 295 and 296 of the new PC) targets bribery through intermediaries.

The offence of domestic passive corruption (section 164) contains the element of bribery through intermediaries, as the official “personally or through an intermediary” receives a bribe.

b. Defences Current CC provides for two defences in case of active bribery. “A person who commits an act bribery shall be released from punishment if a bribe is extorted from him/her or if he/she, voluntarily, is the first to submit a written notification of the events after having given the bribe but before the person who receives the bribe performs or refrains from performing an act in the interests of the person who gives the bribe” (sections 165 and 165-1). The new PC does not include such provision.

c. Liability for active and passive bribery

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The new PC provides for the criminal liability of legal persons (except for the State and municipalities) in certain cases provided by law (including active and passive corruption).

Legal persons are responsible for acts, which are committed by a body or senior official thereof in the interest of the legal person.

Punishment of a legal person will not preclude punishment of the natural person who committed the offence.

According to the new PC legal persons are criminally liable, even for the lack of supervision over the person who commits bribery. Also the heads of businesses are liable for the lack of supervision. It is provided by general principle of the liability of legal persons (section 14 para 1).

PC § 14. Punishability of acts of legal persons (1) An act of a legal person which is committed by a body or senior official thereof in the interest of the legal person is punishable only in the cases provided by law.

(2) Punishment of a legal person does not preclude punishment of the natural person who committed the offence.

(3) The provisions of subsections (1) and (2) do not apply to the state and the local governments.

d. Sanctions Pursuant to section 164 of the current CC accepting a bribe is punishable up to four years’ imprisonment and deprivation of the right of employment in a particular position or operation in a particular area of activity. Same acts are punishable by up to seven years’ imprisonment and deprivation of the right of employment in a particular position or operation in a particular area of activity if committed in aggravating circumstances (repeatedly, by a group of persons, on a large-scale basis or using extortion).

Giving a bribe is punishable by up to four years’ imprisonment. Giving a bribe is punishable by up to seven years’ imprisonment if committed repeatedly or by a person who has a criminal record for bribery.

Arranging a bribe is punishable by up to four years’ imprisonment. Arranging a bribe is punishable by up to seven years’ imprisonment if committed repeatedly or by a person who has a criminal record for bribery or using an official position.

Giving a bribe to an official of a foreign state or an international organisation is punishable by up to four years’ imprisonment. Same act is punishable by up to seven years’ imprisonment if it is committed repeatedly or by a person who has a criminal record for bribery.

Acts of corruption are sanctioned by a fine or deprivation of the right of employment in a particular position or operation in a particular area of activity, provided that they are not committed under aggravating circumstances.

The current CC (sections 33) and new PC (section 83) a court may apply confiscation of the instruments and means used to commit an offence and the assets acquired through the offence.

If the assets acquired by an offence have been transferred, consumed or the confiscation thereof is impossible for another reason, the court may order the offender to pay an amount, which corresponds to the value of the assets subject to confiscation (sections 33-1 and 84). Search, seizure and seizure of property are provided for under chapter 14 of the Code of Criminal Procedure (sections 139 to 148).

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Under the new PC, legal persons will be sanctioned by a fine. In case of aggravating circumstances (offence committed at least twice) sanctions will be a fine or compulsory dissolution. The fines will be between 50,000 and 25,000,000 Kroons (EEK). Compulsory dissolution may apply if commission of criminal offences has become part of the activities of the legal person.

e. Jurisdiction Estonian judicial authorities shall have a territorial jurisdiction over any criminal offence (including corruption) accordingly to section 4 of CC and section 6 of PC. Any person who commits a crime on the territory of the Republic of Estonia belongs to criminal liability (with certain exceptions concerning representatives of diplomatic missions etc.).

Section 5 of CC and Section 7 of PC provides for the conditions to establish extra-territorial jurisdiction.

Estonian jurisdiction can be established for criminal acts committed in the territory of foreign state, provided dual criminality exists (such act constitutes a criminal offence pursuant to the penal law of Estonia and is punishable at the place of commission of the act) and one of the following conditions is met: • Request to punish the person has been submitted on the basis of international agreement • The act is committed against a citizen of Estonia or a legal person registered in Estonia • The offender is a citizen of Estonia when the crime is committed or became Estonian citizen after the commission of act • The offender is an alien (foreign citizenship or stateless person) who has been detained in Estonia and is not extradited (Annex IV).

Nationals can be extradited for bribery accusations according to the European Convention on Extradition and it additional protocols what have been ratified in February 19, 1997. (Annex V)

f. Statute of limitations Pursuant to section 53 of the CC and new PC section 81, the statute of limitation in respect of the bribery offences is 5 years (2 years in case of acts of corruption, this period being calculated from the time of the commission of the offence. According to the section 81 of PC no one shall be convicted of or punished for the commission of a criminal offence if the following terms have expired between the commission of the criminal offence and the entry into force of the corresponding court judgement: 1) ten years in the case of commission of a criminal offence in the first degree; 2) five years in the case of commission of a criminal offence in the second degree.

Statute of limitation applicable for bribery offences is five years. For accepting and giving bribe at aggravating circumstances (at least twice, by group, on a large-scale basis, by an extortion) the limitation period is 10 years.

The statute of limitation interrupts when before end of these limitations the person commits new crime (section 53 para 2). The period stops when offender hides from the investigation and the court (section 53 para 3). In new PC the statute of limitation interrupts with procedural act or when person commits new crime (section 81).

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2. Money laundering legislation related to corruption Estonia ratified the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime (entered into force on 1st September 2000) and adopted the 1997 Baltic Assembly Resolution on Fighting against Money Laundering.

Money laundering has been a separate criminal offence in Estonia since July 1, 1999. Elements are described in section 14815 of the CC (Annex II) as follows: §14815 Money laundering (1) Money laundering is punishable by a fine or detention or up to four years’ imprisonment.

(2) Same act is punishable by two to seven years’ imprisonment if committed: 1) by a group of persons, or 2) repeatedly.

(3) Money laundering is punishable by three to ten years’ imprisonment if committed: 1) on a large-scale basis, or 2) by a criminal organisation.

Money laundering is the conversion or transfer of, or the performance of legal acts with property acquired as a direct result of an act punishable pursuant to the criminal procedure, the purpose or consequence of which is the concealment of the actual owner or the illicit origin of the property.

All criminal offences can be predicate offences in Estonia. Estonian legislation does not require a conviction for the predicate offence before a prosecution for money laundering could be undertaken. While they considered that it would be necessary to show that proceeds originate from a particular predicate offence, they thought that the particular predicate crime could be proved by sufficient circumstantial evidence.

Money laundering is punishable only if committed by credit institutions, financial institutions, and other undertakings. Negligent money laundering is not covered. The property or money laundered could be confiscated in accordance with current CC and new PC. The section 148-15 of the current CC will be maintained with the new PC. Currently, legal persons are not criminally liable for money laundering. As corporate criminal liability is included in the new PC, it will be possible after implementation of the new PC. Ministry of Internal Affairs is preparing amendments to the Money Laundering Prevention Act in order to bring it in line with the EC Directive 2001/97/EC. The changes envisaged are mainly to broaden the professions submitted to reporting obligations, identification of casino customers and to introduce the notion of negligent laundering. The amendments are expected to adopt by the Government by the end of 2002.

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II INSTITUTIONAL FRAMEWORK TO FIGHT CORRUPTION 1. Enforcement rules The organisations involved in the prevention, detection and repression of corruption at a national and at decentralised level are police, prosecutors and courts.

Rules and principles regarding investigation and prosecution are contained in the Code of Criminal Procedure and the Public Prosecutor’s Act. The new Code of Criminal Procedure, the Code of Misdemeanour Procedure, the Implementing Act of Penal Code and the Acts Connected to Penal Code Amending Act are under the second reading of Parliament and will be probably adopted on the fist half of 2002.

The New Courts Act will presumably be adopted in the beginning of 2002.

Investigations: Investigation of corruption-related offences is mainly divided between the Police Board and the Security Police Board (offences involving higher state officials) under the control and supervision of a prosecutor’s office. As defined in the Surveillance Act, the Police, Border Guards, Defence Forces, Customs Board and Tax Board may undertake “special surveillance activities”, such as covert collection of information and comparative samples. Only the Police Board and Security Police may conduct “exceptional surveillance activities”, including covert entry into dwellings, databases and vehicles, wire tapping and staging of criminal offences authorised by a court and supervised by the Chief Public Prosecutor.

Prosecution: Estonia’s criminal system is based on the principle of mandatory prosecution.

Section 3 of the Code of Criminal Procedure imposes that after the elements of a criminal offence have become evident, a preliminary investigator or prosecutor shall commence criminal proceedings and take the measures prescribed by law to establish that a criminal act has taken place, and to identify the person who committed the criminal offence. Three specialised prosecutors in corruption cases work in Tallinn Prosecutor’s Office. According to section 22 of the Code of Criminal Procedure, a prosecutor shall exercise his or her authority in criminal proceedings independently and is governed only by law.

2. Institutional resources The Parliament has established the Special Committee on Anti-Corruption Activities for the execution of the tasks provided by the Anti-Corruption Act and to assist the implementation of corruption preventive measures. The committee revises that the data presented in the declarations of the economic interests of officials are correct. At the same time, the task of the committee is the supervision of the restrictions on employment and activities of members of the Parliament. The committee informs both the Parliament and the public in general of the efficiency of the implementation of the Anti-corruption Act. This overview contains both numerical data and the problems that have emerged in the application of the Act. The committee is the controller of suspected corruption.

Good co-operation with all law enforcement structures in Estonia exists on a daily basis as well as within the framework of co-operation protocols concluded between the different government agencies. Bilateral co-operation protocols between the Border Guard Administration, Police Administration, Customs Board and Security Police Administration signed in 2002. The bilateral protocols replaced the former Multilateral Co-operation Protocol between Border Status Report Estonia page 23

Guard Administration, Police Administration, Security Police Administration and Customs Board (concluded and signed in 1994).

3. The detection of bribery offences Pre-trial records of investigation can be used as evidence in certain situations (e.g. when the whereabouts of the witness is unknown) and also anonymous witnesses can be heard. Under current practice, the preliminary investigator may determine that a witness who fears reprisal will be granted anonymity as a court witness. The Tallinn City Court (which has jurisdiction over all organised crime cases) has at its disposal session rooms properly equipped for this kind of testimony.

All officials who become aware of a crime in the course of their duties are obliged to report and that according to the Code of Criminal Procedure there is no difference in informing either a prosecutor, the police or a court as they are obliged to take measures for registering and investigating a crime.

According to Surveillance Act (section 14) is possible to recruit for secret co-operation in surveillance activities. Surveillance agencies have the right to recruit adults for voluntary temporary or permanent secret co-operation in surveillance activities with their consent. Secret co-operation and persons who have been recruited therefor are classified as secret. Surveillance agencies, other state agencies, state officials, local government agencies or local government officials may disclose information concerning a person who has been engaged in co-operation only with the written permission of the person who has been engaged in co-operation after the term of classification expires or is altered.

Persons who have been recruited for secret co-operation are required to refrain from knowingly disseminating false or defamatory information and to maintain the confidentiality of information, which becomes known to them in the course of co-operation, and the equipment, methods and tactics used in surveillance.

A person who has been recruited for secret co-operation has the right to refuse to perform surveillance duties with regard to persons close to him or her.

A person who has been recruited for secret co-operation has the right to terminate secret cooperation if he or she adheres to the confidentiality requirements.

Members of the Riigikogu, members of rural municipality councils, members of city councils, judges, prosecutors, advocates, ministers of religion and officials elected or appointed by the Riigikogu may, with the written permission of the chairman of Tallinn Administrative Court or an administrative court judge of Tallinn Administrative Court designated by him or her, be recruited for secret co-operation for the conduct of individual surveillance activities for a criminal proceeding only if they are parties to a proceeding or witnesses in the criminal matter concerned.

Social and legal protection of persons who have been recruited for surveillance activities is prescribed by Surveillance Act.

4. International aspects of enforcement International Anti-corruption instruments Estonia has ratified the following Conventions governing procedures for judicial co-operation and mutual assistance: Status Report Estonia page 24

1) European Convention on Extradition; 2) First Additional Protocol to the European Convention on Extradition; 3) Second Additional Protocol to the European Convention on Extradition; 4) European Convention on the Transfer of proceedings in Criminal Matters; 5) Convention on the Transfer of Sentenced Persons; 6) European Convention on Mutual Assistance in Criminal Matters and its Additional Protocol; 7) European Convention on Laundering, Search, Seizure and Confiscation of the proceeds of crime; 8) European Convention on International Validity of Criminal Judgements; 9) Council of Europe Civil Law Convention on Corruption; 10) Council of Europe Criminal Law Convention on Corruption.

Estonian Parliament adopted the Act of Ratification of the Criminal Law Convention on Corruption (Strasbourg 1999) on 17 October 2001.

Mutual legal assistance International legal assistance in criminal matters is governed by the Code of Criminal Procedure (Annex V), unless provided otherwise by international agreements. Estonia has also concluded mutual legal assistance agreements with Armenia, Georgia, Kazakhstan, the Kyrgyz Republic, Latvia, Lithuania, Tajikistan, United-States, Ukraine, Uzbekistan, Poland and Russia.

An EU Phare Horizontal Programme on Developing Judicial Co-operation in Criminal Matters in Estonia, Latvia and Lithuania was started in 1999. Final conference of the project was held on 1 March 2002 in Helsinki. Partner Institutions were Ministries of Justice of Finland, Sweden and France. The overall objective of the project was to support the Baltic States in their steps to adopt and implement the acquis of the EU in the area of Justice and Home Affairs.

The specific objective in particular was to assist the Baltic States in identifying and formulating a NAP (National Action Plan) including the action required in the field of international judicial co-operation in penal matters to improve legislation, carry out institutional reforms and training, and to adopt practices and standards in line with the acquis of the Union. NAPs were written per country. The NAP covers the following levels: 1) Legislative level - ratification of the remaining conventions and amendments to the internal legislation; 2) Institutional level - developing activities of the Central Authority; 3) Human resources level - training of personnel participating in judicial co-operation.

The major concrete result of the project was the NAP and the training of the trainers.

MLA requests are sent and received by the courts, the Public Prosecutor's Office, the Ministry of Justice and the Ministry of Internal Affairs of the Republic of Estonia, according to their competence. Dual criminality is a condition to grant MLA. Moreover, in case of letters rogatory for search or seizure of property, Estonia will only execute them under the conditions that execution of the letters rogatory is consistent with its law.

The assistance is provided in the stage of preliminary investigation and judicial proceeding of criminal matters, in the form of performance of particular procedural acts, procurement of evidence, seizing of property, forwarding of writs of summons, etc. on the basis of requests.

They indicated that there has been only one known request for mutual legal assistance, concerning corruption, which was presented to them at the beginning of 2001, and that there are no specific factors that prevent or hinder mutual legal assistance in corruption cases.

The conditions to render mutual legal assistance would be more concrete change with the adoption of the new Code of Criminal Procedure.

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Bank secrecy: Bank secrecy may not be invoked as a ground for refusing to supply information to the judiciary authorities. Pursuant to section 88(5) of the Credit Institution Act, a credit institution shall, in response to a written inquiry, disclose information subject to banking secrecy to various institutions, including courts and the Prosecutor's Office if a criminal proceeding is commenced, and on the basis of a request for legal assistance received from a foreign state pursuant to the procedure provided for in an international agreement.

Extradition In accordance with the European Convention on Extradition, persons are extradited in the case of offences punishable by more than 1-year imprisonment both in the requesting and requested States.

Bilateral treaties of extradition are old one from the pre-war period, for example with USA (1924), UK (1926) and Spain, Norway (1930).

Extradition is governed by the Code of Criminal Procedure. Requests for extradition by a foreign country are to be submitted to the Ministry of Justice, who forwards them to the Public Prosecutor's Office. A prosecutor reviews the request and verifies whether all necessary documents have been annexed to it, before forwarding it the Tallinn City Court. Then a judge will decide on the basis of a reasoned order of a preliminary investigator or prosecutor granting of a permission to take the person to be extradited into custody. The Court supports extradition provided extradition is not legally unjustified.

Under the Constitution, the extradition of a national is possible under conditions prescribed by an international treaty and is decided by the Government. The Republic of Estonia reserves itself the right to refuse extradition of one of its nationals, if the national has not consented to it. If an Estonian national commits the act of corruption in a foreign state, the competent authorities would require this country to send all relevant materials, evidence, and files to Estonia for the purpose of prosecuting the perpetrator. The prosecution of the national was mandatory in case of refusal of extradition.

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ANNEX I - Anti-corruption Act Passed on 27 January 1999 (RT1 I 1999, 16, 276), entered into force 28 February 1999, amended by the following Acts: 07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357; 14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145; 09.11.99 entered into force 06.12.99 - RT I 1999, 87, 791.

Chapter 1 General Provisions ยง 1. Scope of application of Act This Act provides the legal bases for the prevention of corruption and prosecution of officials involved in corruption. ยง 2. Means of corruption prevention The means to prevent corruption are the following: 1) declaration of the economic interests of officials and persons listed in ยง 4 of this Act and disclosure of declarations of economic interests in the cases prescribed by law; 2) restriction on employment and activities specified in Chapter 3 of this Act; 3) procedural restrictions specified in Chapter 4 of this Act. ยง 3. Office and official position (1) For the purposes of this Act, an office is a place of employment or service to which a person has been elected, appointed, or hired under an employment contract.

(2) Official position is the competence of an official arising from the office to adopt decisions binding to other persons, perform acts, participate in making decisions concerning privatisation, transfer or grant of use of municipal property and the obligation to fulfil his or her official duties honestly and lawfully. ยง 4. Official (1) Pursuant to this Act, an official is a state or local government official who has an official position provided for in subsection 3 (2), or a non-staff public servant performing his or her duties.

(2) For the purposes of this Act, the following are also deemed to be officials: 1) members of the Riigikogu2; 2) the President of the Republic; 3) members of the Government of the Republic; 4) the Chief Justice and justices of the Supreme Court; 5) the Chairman and members of the Board of the Bank of Estonia, the President of the Bank of Estonia; 6) the Commander (Commander-in-Chief) of the Armed Forces; 7) the Auditor General and chief auditors of the State Audit Office; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) 8) the Legal Chancellor; 9) heads of foreign missions of Estonia; 10) the State Secretary; 11) county governors; 12) the Chief Public Prosecutor and prosecutors; 13) judges of administrative, county, city and circuit courts; 14) chairmen and members of rural municipality and city councils; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) Status Report Estonia page 27

15) rural municipality mayors and city mayors, members of rural municipality and city governments; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) 16) rural municipality district elders and city district elders, members of administrative councils of rural municipality districts and city districts; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) 17) notaries; 18) police officers; 19) bailiffs, prison officers and probation officers; 20) officers of the armed forces, armed forces officials, border guard officials, rescue service officials, and officials of the National Defence League; 21) the Commander of the National Defence League and members of the central management and central audit committee of the National Defence League, the Commander of the General Staff and commanders of structural units of the National Defence League, chiefs of units and members of the management and audit committees of the National Defence League; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) 22) members of the management boards and supervisory boards of companies with state participation; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) 23) members of the management boards and supervisory boards of companies with local government participation; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) 24) members of the management boards and supervisory boards of companies with the participation of a legal person in public law; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) 25) members of the management boards and supervisory boards of legal persons in public law, the President of the Estonian Academy of Sciences, rectors of universities in public law, the Chairman of the Estonian Bar Association; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) 26) heads of state agencies administered by government agencies; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) 27) trustees in bankruptcy, natural persons who are performing administrative functions in public law assigned to them pursuant to law or who are granted authority to exercise executive power pursuant to law and the members of directing bodies of legal persons in private law which perform the above-mentioned functions or exercise executive power; (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) 28) managers and members of management boards and supervisory boards of foundations in private law founded by the state, a local government or a legal person in public law.

(07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) (3) For the purposes of this Act, heads of rural municipality or city government administrative agencies and heads of agencies administered by administrative agencies are considered to be officials if so decided by the rural municipality or city council.

(07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) (4) For the purposes of this Act, members of management boards of non-profit associations are considered to be officials if the non-profit association is founded by or with the participation of the state, a local government or a legal person in public law or if so provided for in the Act regulating the activities of the non-profit association or in the articles of association or if a corresponding resolution is adopted by a competent directing body of the non-profit association.

(07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) ยง 5. Definition of act of corruption, relationship involving risk of corruption and income derived from corrupt practices (1) An act of corruption is the use of official position for self-serving purposes by an official who makes undue or unlawful decisions or performs such acts, or fails to make lawful decisions or perform such acts.

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(2) A relationship involving the risk of corruption is a relationship of an official with another person which is created or may be created if the official violates of the restrictions on employment and activities or the procedural restrictions provided for in Chapters 3 or 4 of this Act. (3) Income derived from corrupt practices is economic or other benefit which an official directly or indirectly receives from another person for committing an act of corruption or on the condition that an act of corruption will be committed in the future: 1) as a monetary payment; 2) as a gift; 3) as remuneration in kind, a useful favour or advantage; 4) by way of transfer without charge, or sale below the market price of shares, share certificates and other securities to him or her; 5) by way of accepting an offer to become a co-owner of an immovable, a partner or shareholder of a public limited company or other company; 6) as economic or other benefit not set out in clauses 1) - 5) of this subsection. § 6. Prohibition on relationships involving risk of corruption (1) Officials are prohibited from committing acts of corruption, entering into relationships involving risk of corruption with natural or legal persons and from receiving income derived from corrupt practices.

(2) The head of an agency is required, as an employer, to organise work in a manner where the legality of the officials’ activities and the restrictions on employment and activities and procedural restrictions established for officials are monitored.

(3) Officials who have relationships involving the risk of corruption shall inform the head of the agency or a body with election authority thereof and apply for the right to make the corresponding decisions or conclude the corresponding transactions to be granted to another official.

(07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) Chapter 2 Declaration of Economic Interests § 7. Purpose of declaration of economic interests The purpose of a declaration of economic interests is to get an overview of the economic interests of an official which may promote or cause a conflict of private and public interests, the commitment of an act of corruption or the creation of a relationship involving the risk of corruption.

(14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145) § 8. Definition of declaration of economic interests A declaration of economic interests (hereinafter declaration) is a document in which an official declares information concerning his or her property, proprietary obligations and other circumstances which allow to determine the economic interests and financial situation of the official.

(14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145) § 9. Content of declaration (1) A declaration shall contain the following information concerning the person submitting the declaration: 1) immovable property (including structures and parts thereof until entry in the land register) (use, location, land registry jurisdiction and registered immovable property number); 2) vehicles entered in the state register (type of vehicle, make, and year of production); 3) the holding of shares, other securities (share certificates in investment funds, bonds, convertible bonds, privatisation vouchers, certificates proving the right or obligation of purchase or sale (option), etc.), and shares (issuer, class, amount, the nominal value of one unit, and the total value of each article in the case of shares and convertible bonds);

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4) debts and contracts of suretyship (creditor and amount of debt) to banks and other persons if the amount of debt exceeds six months’ salary or 50 000 kroons a year, if salary is not paid in the corresponding office; 5) other proprietary obligations, if the amount of debt or the possible debt-claim (leasings, contracts of suretyship, pledges, mortgages, real encumbrances, etc.) exceeds six months’ salary or 50 000 kroons a year, if a salary is not paid in the corresponding office; (14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145) 6) other income (salary and additional remuneration if the official does not receive a salary for the office, including remuneration received from supervisory boards, interest, pensions, and other remuneration and sources of income); (14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145) 7) bank accounts (bank, type of account and number of accounts); 8) taxable income (shall be completed on the basis of a natural person income tax return of the preceding year submitted to the Tax Board); 9) dividend income (shall be completed on the basis of a natural person income tax return of the preceding year submitted to the Tax Board). § 10. Declaration of property in common or joint ownership (1) The things, rights and obligations in common or joint ownership (joint property of spouses and other joint ownership provided by law) listed in § 9 of this Act shall be declared and the share of the official in the common ownership and the estimated share in joint ownership shall be indicated; a corresponding notation shall be made concerning the property which belongs to the spouse of the official.

(2) If an official has entered into a marital property contract, he or she shall submit the copy of the marital property contract entered in the marital property register to a depositary of declarations within one month as of entry into the contract or amendment thereof. Upon disclosure of a declaration, the content of the marital property contract shall not be disclosed.

(14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145) § 11. Declaration form (1) A declaration shall be submitted on the form set out in Annex 1 to this Act. For the submission of a declaration, a depositary of declarations shall give or send the form to the person submitting the declaration at least one month before the expiry of the term for the submission of declarations. A depositary of declarations shall make an entry in the register maintained by the depositary and shall indicate the person who submitted the declaration, the date of submission of the declaration and the number of the declaration.

(07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) (2) If the person who is required to submit a declaration has not received the declaration form by the time specified in subsection (1) of this section, he or she shall, in order to receive the declaration, address a depositary of declarations at a time which enables the timely submission of the declaration.

(14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145) § 12. Depositary of declarations (1) A depositary of declarations is an official appointed by the head of an agency or a duly authorised body. In the cases provided for in this Act, a depositary of declarations is a committee or supervisory board designated therefor.

(2) A depositary of declarations organises the timely collection of declarations, the verification and depositing thereof according to the requirements and, in the cases provided by law, publication of declarations.

(3) Monitoring compliance with restrictions on employment and activities and procedural restrictions provided by law may be assigned to a depositary of declarations.

(4) A depositary of declarations is required to determine the reasons for a failure to submit a declaration on time or failure to submit a declaration at all.

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(5) A depositary of declarations has the right to make proposals concerning disciplinary proceedings to be brought against officials and to submit documentation concerning violations revealed in the course of monitoring to the police.

(6) Officials who, pursuant to this Act, shall submit a declaration are required to provide explanations to the depositary of declarations concerning the contents of the declaration and a failure to submit the declaration on time or failure to submit the declaration at all.

(7) Declarations together with accompanying documents shall be deposited such that nobody except the depositary of declarations, the head of the agency, the person who submitted the declaration, investigative bodies and courts has access thereto.

(8) The head of the agency shall be responsible for creating the working conditions necessary for the depositary of declarations. The work of an official, committee or supervisory board appointed as a depositary of declarations may be compensated for.

(9) Declarations of officials specified in ยง 4 of this Act shall be deposited in the office of a depositary of declarations as of the submission thereof until the destruction or transfer of the declarations to the archives. Declarations of officials specified in subsection 4 (1) of this Act shall be destroyed after five years or be granted archival value pursuant to the procedure provided for in the Archives Act (RT I 1998, 36/37, 552; 1999, 16, 271; 2000, 92, 597).

Declarations of officials specified in subsection 4 (2) of this Act and accompanying documents related to the collection, depositing and verification of the declarations shall be given to a public archives after five years pursuant to the procedure provided for in the Archives Act. (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) ยง 13. Term for submission of declaration (1) A declaration shall be submitted every year one month after expiry of the term for submission of income tax returns or within one month after the date of commencement of work in an office, unless otherwise provided by this Act. (2) If, after the submission of a declaration during the term specified in subsection (1) of this section, the composition of the property or the structure thereof declared by the official changes significantly, the official shall submit a new declaration within one month after the change occurs. A change in the financial situation is deemed to be significant if it involves a change to the extent of at least 30 per cent or over 100 000 kroons.

(3) Officials specified in subsection 4 (2) of this Act, with the exception of persons specified in clauses (2) 1) and 2), shall submit a declaration to the former depositary of declarations within two years after leaving their posts.

(14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145) ยง 14. Submission of declaration (1) The head of an agency shall determine, on the basis of this Act, the categories of officials who shall submit declarations. An official shall submit a declaration to the depositary of declarations appointed by the head of the agency or, in the absence thereof, to the head of the agency.

(2) Members of the Riigikogu, the President of the Republic, members of the Government of the Republic, the Chairman and justices of the Supreme Court, the Chairman and members of the Board of the Bank of Estonia, the President of the Bank of Estonia, the Commander and Commander-in-Chief of the Armed Forces, the Auditor General and chief auditors of the State Audit Office, the Legal Chancellor, ambassadors, the Chief Public Prosecutor and public prosecutors, the chairmen of circuit courts, the chairmen of administrative, county and city courts, county governors, the State Secretary, the President of the Estonian Academy of Sciences and rectors of universities in public law shall submit declarations to the committee designated by the Riigikogu.

(3) The chancellors of ministries shall submit declarations to the State Secretary.

(4) Chairmen of rural municipality and city councils, rural municipality mayors and city mayors, rural municipality district and city district elders shall submit declarations to the Minister of Internal Affairs.

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(5) Members of local government councils, officials of local governments and non-staff public servants performing the duties of such officials, heads of rural municipality or city government administrative agencies and heads of agencies administered by such administrative agencies and members of management boards and supervisory boards of companies with local government participation shall submit declarations to the committee appointed by the council.

(6) Judges of administrative, county and city courts, judges of circuit courts, senior prosecutors, notaries, the Chairman of the Estonian Bar Association, bailiffs and directors of prisons shall submit declarations to the Minister of Justice.

(7) Members of the management board or supervisory board of a company with state participation shall submit declarations to the minister who directs the ministry which exercises the state shareholder rights in the company, unless otherwise provided by law.

(8) Members of the management board (directing body) of a legal person in public law shall submit declarations to the supervisory board of the same person in public law. Members of the supervisory board of a legal person in public law shall submit declarations to the committee appointed by the Riigikogu unless otherwise provided by law.

(9) Members of the management board and supervisory board of a company with the participation of a legal person in public law and the manager and members of the management board and supervisory board of a foundation founded by a legal person in public law shall submit declarations to the head of the legal person in public law.

(10) A trustee in bankruptcy shall submit the declaration to the chairman of the court which appointed the trustee in bankruptcy. Other members of directing bodies of legal persons in private law and natural persons who are performing administrative functions in public law assigned to them pursuant to law or who are granted authority to exercise executive power pursuant to law shall submit declarations to the state agency which exercises supervision over their activities.

(11) Members of the supervisory board of a non-profit association specified in subsection 4 (4) of this Act shall submit declarations to the audit committee of the non-profit association.

(12) If an agency operates in the area of government of a ministry, the head of the agency shall submit a declaration pursuant to the procedure established by the minister. The depositary of declarations of the head of an agency shall not be an official subordinate to the head of the agency.

(13) Depositaries of declarations of economic interest of the categories of officials listed in this section (heads of agencies, committees and officials) are required to inform the committee of the Riigikogu specified in subsection 14 (2) of this Act of the figures of the declarations within two months as of the submission of declarations to a depositary of declarations.

(14) If, pursuant to this Act, several depositaries of declarations are appointed with respect to an official, the official shall submit a declaration to the depositary of declarations of his or her principal place of employment and a copy thereof to the other depositary of declarations.

(07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) ยง 15. Disclosure of information given in declaration (1) Everyone has the right to disclose the information given in his or her declaration.

(2) The information given in the declarations of members of the Riigikogu, the President of the Republic, members of the Government of the Republic, the Chairman and members of the Board of the Bank of Estonia, the President of the Bank of Estonia, the Commander and Commander-in-Chief of the Armed Forces, the Auditor General, the Legal Chancellor, ambassadors, the Chief Public Prosecutor, the Chairman and justices of the Supreme Court, the State Secretary, the chairmen and members of circuit courts, the chairmen and judges of administrative, county and city courts, secretaries general of ministries, county governors, chairmen of rural municipality and city councils, heads of rural municipality and city governments shall be disclosed in the Riigi Teataja Lisa3.

(09.11.99 entered into force 06.12.99 - RT I 1999, 87, 791; 14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145; 07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357)

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(3) Declarations of members of local government councils and members of city governments and rural municipality governments shall be disclosed in a publication designated by the city council or rural municipality council. The local government council shall decide the disclosure of the declarations of other local government officials and determine the procedure for disclosure.

(4) An agency or official to whom a declaration has been submitted, or a committee designated to be the depositary of declarations shall submit the information given in the declaration for disclosure.

(14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145) (5) A declaration to be disclosed shall be published without the personal identification code, address and data concerning close relatives and close relatives by marriage and without indicating the income specified in clauses 9 (1) 6), 8) and 9) of this Act (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) (6) Information contained in a declaration not subject to disclosure shall not be disclosed. § 16. Verification of declaration (1) A depositary of declarations shall examine declarations submitted to him or her. A depositary of declarations has the right to verify the accuracy of information in a declaration and an obligation to do so if an official is suspected of corruption.

(2) A depositary of declarations has the right to make enquiries and to verify whether the declaration of an official has been changed during the period following the submission of the declaration.

(3) A depositary of declarations shall prepare an audit report concerning each verification specified in subsection (1) of this section and the audit report shall be communicated to the head of the agency and the official the accuracy of whose declaration was verified.

(4) In the case of a suspicion of corruption, a depositary of declarations and persons authorised for verification have the right to verify the following information concerning an official specified in § 4 of this Act: 1) the income tax return submitted to the Tax Board; 2) data concerning the official which is deposited in registers and databases maintained by the state and local governments; 3) data which is necessary for the verification of the declaration and is deposited in credit institutions.

(5) If, as a result of verification of a declaration of an official, a material violation of this Act, receiving income derived from corrupt practices or a relationship involving risk of corruption is proved, the verification documents shall be forwarded to an investigative body.

(6) Everyone who has information that an official specified in § 4 of this Act has failed to declare his or her economic interests and financial situation honestly and accurately may contest the declaration by submitting a reasoned application and request that the suspicions be verified by the direct depositary of declarations of the official or a committee of the Riigikogu.

Verification of compliance with restrictions on employment and activities and procedural restrictions may be applied for as well. The recipient of an application is required to verify the declaration or suspicions of corruption on the basis of the application within one month as of the date of receipt of the application. The applicant shall be informed of the results of verification. If the reasons presented in an application prove to be even partly right, the declaration of the official together with proof shall be published in the media.

(7) All depositaries of declarations of economic interests are required to report to the head of the agency who appointed them or to authorised bodies and, at the request of the Riigikogu committee, to the Riigikogu committee on the performance of the duties imposed on them by this Act. (07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) § 17. (Repealed - 07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) § 18. Failure to submit declaration (1) Failure to submit a declaration within the term provided for in § 13 of this Act without good reason shall bring about liability pursuant to the procedure provided by law Illness of the Status Report Estonia page 33

person who is required to submit a declaration or other circumstances independent of such person which prevent him or her from submitting the declaration within the term are deemed to be good reasons.

(2) Failure of an official to submit a declaration by the due date constitutes a violation of duties of employment or a breach of duties and an act which discredits the administrative agency which shall bring about disciplinary or administrative liability provided by law.

(3) If an official specified in subsection 15 (2) or (3) of this Act fails to submit a declaration by the due date, the chairman of the Riigikogu, the corresponding minister, head of an agency or chairman of the local government council shall publish a corresponding official notice in the Riigi Teataja Lisa within one month after the offence became known.

(07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) Chapter 3 Restrictions on Employment and Activities § 19. Definition of restriction on employment and activities (1) For the purposes of this Act, a restriction on employment and activities means a restriction to operate as an undertaking, hold a second job or work in a relationship of direct subordination with a close relative or close relative by marriage, while in public service.

(2) Officials specified in subsection 4 (1) of this Act shall not: 1) hold a second job with a work load higher and at a time different than permitted by the immediate superior if such employment damages the reputation of the position or office, or if performance of the duties of employment also means supervision over the other employer; 2) be a member of the directing or supervisory body of a company, except the representative of the state, a local government or legal person in public law of a company with the participation of the state, local government or legal person in public law; 3) be the director of a branch of a foreign company; 4) be employed in an office where an official who directly monitors him or her, or is his or her immediate superior is a close relative or close relative of the official by marriage; 5) be a member of a legal person in public law and, at the same time, the directing or supervisory body of a legal person directly monitored by the legal person in public law; 6) be a member of the directing or supervisory body of a company with state or local government holding within three years after resignation from the public service.

(3) An official may operate as an undertaking, be a partner of a general partnership or general partner of a limited partnership only with the permission of the person or agency who has appointed or elected him or her to office or hired under an employment contract if such activity does not hinder the performance of duties of employment or damage the reputation of the position or office. Everyone has the right to obtain information from the official who has appointed or elected an official to office or hired him or her under an employment contract concerning this permission.

(4) An official shall not exercise supervision over the activities of himself or herself as an undertaking, or over a general partnership of which he or she is a partner or a limited partnership of which he or she is a general partner in performing his or her duties of employment or service.

(5) For the purposes of this Act, close relatives mean grandparents, parents, brothers, sisters, children and grandchildren; close relatives by blood mean the spouse, his or her parents, brothers, sisters and children. § 20. Special rules for restrictions on employment and activities of officials (1) The restrictions on employment and activities of officials specified in clauses 4 (2) 1)-16) of this Act are not regulated by § 19 of this Act but are provided for in §§ 63 and 84 of the Constitution of the Republic of Estonia and in the Acts concerning the activities of the Riigikogu, the Government of the Republic, the Legal Chancellor, the State Audit Office, the Bank of Estonia, prosecutor’s offices, armed forces and the border guard, judges, the police,

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notaries’ offices, bailiffs and local governments, and in other legislation which separately regulates the official position, rights and obligations of the officials of such categories.

(09.11.99 entered into force 06.12.99 - RT I 1999, 87, 791) (2) Taking into account the specific character of some offices, the Government of the Republic may establish a list of offices the employment in which may be permitted, regardless of the restrictions provided for in clauses 19 (2) 4) and 5) of this Act, by the minister in whose area of government the place of employment is, provided there is no risk of corruption involved. The minister shall justify the grant of permission every time. Upon the establishment of exceptions, the person who establishes the exceptions shall exercise regular supervision over the justification thereof and submit a corresponding report together with the opinion of the State Audit Office to the Riigikogu committee specified in subsection 14 (2) of this Act. (14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145) (3) Taking into account the specific character of some offices, a local government may establish a list of offices the employment in which may be permitted, regardless of the restrictions provided for in clauses 19 (2) 4) and 5) of this Act, by the executive body of the local government, provided there is no risk of corruption involved. The executive body of a local government shall justify the grant of permission every time. Upon the establishment of exceptions, the person who establishes the exceptions shall exercise regular supervision over the justification thereof and submit a corresponding report together with the opinion of the county governor to the committee or member of the council specified in subsection 14 (4) of this Act. (14.03.2000 entered into force 29.03.2000 - RT I 2000, 25, 145) Chapter 4 Procedural Restrictions § 21. Definition of procedural restrictions (1) For the purposes of this Act, a procedural restriction means a prohibition to perform acts which enable to receive income derived from corrupt practices.

(2) Procedural restrictions do not apply to activities as a result of which income on shares of a company is received, unless otherwise provided by law. An official may also receive income as royalties, revenue from patents, interest on deposits, on immovables which are subjected to commercial lease or use by other persons, fee for the works published in print or electronic media, and other income which does not presume the employment of the recipient thereof to promote the economic benefit of another person, unless otherwise provided by law. § 22. Prohibition on acceptance of remuneration or more than adequate remuneration (1) An official who is required to provide services or make decisions without charge shall not demand or accept remuneration therefor in money, in kind or as a favour.

(2) An official who is required to provide services pursuant to the official procedure for a specific remuneration in money, shall not demand or accept remuneration therefor different from the remuneration set out in the rates or price lists. § 23. Duty to give notification of bribery (1) An official is required to notify the immediate superior or head of the agency and the police in writing of any offering, giving or acceptance of a bribe which becomes known to him or her.

(2) Failure to give notification of an offering, giving or acceptance of a bribe pursuant to the procedure provided for in this Act shall be the basis for the release of the official in the public service from service. § 24. Prohibited transactions (1) An official shall not engage in self-dealing, or conclude transactions of similar nature or involving a conflict of interest. He or she shall not authorise persons subordinate to him or her to perform such transactions instead of him or her.

(2) Self-dealing, which is prohibited, means inter alia the following: 1) concluding, with regard to property entrusted to him or her by an agency, transactions with oneself or a legal person the shares of which belong either wholly or partially to him or her, his Status Report Estonia page 35

or her close relatives or close relatives by marriage, or a board or decision-making body of which he or she is a member; 2) concluding, as a person entitled to represent a state agency in transactions, transactions with the state through an administrative agency concerned, or concluding, as a person entitled to represent a local government agency in transactions, transactions with a local government through an administrative agency concerned; 3) concluding, as a representative of the state or a local government, property transactions with other employers in whose employment he or she is; 4) concluding, as a representative of the state or a local government, property transactions with legal persons specified in subsection 25 (1) of this Act; 5) concluding, as a representative of the state or a local government, property transactions with a non-profit association or political party of which he or she is a member; 6) concluding, as a representative of the state or a local government, property transactions with an employer, company, non-profit association or political party over the activities of which he or she exercises supervision; 7) concluding, as a representative of the state or a local government, property transactions with one’s close relatives, close relatives by marriage or oneself.

(3) The restrictions concerning the representatives of the state or a local government provided for in subsection (2) of this section also apply to the representative of a legal person in public law.

(4) Transactions concluded in violation of the prohibitions provided for in subsection (1) of this section are void. § 25. Conflict of interest (1) A conflict of interest occurs if an official, in the course of his or her duties of employment, is required to make a decision or participate in the making of a decision which significantly influences the economic interests of the official, his or her close relatives or close relatives by marriage or legal persons, if the legal person is: 1) a general partnership, the partner of which the official, his or her close relative or close relative by marriage is; 2) a limited partnership, the general partner or limited partner of which the official, his or her close relative or close relative by marriage is; 3) a private limited company, the shareholder or member of the management board or supervisory board of which the official, his or her close relative or close relative by marriage is; 4) a public limited company, the shareholder or member of the management board or supervisory board of which the official, his or her close relative or close relative by marriage is; 5) a commercial association, the member of the management board or audit committee of which the official, his or her close relative or close relative by marriage is; 6) other legal person in private law, the member of the directing or supervisory body of which the official, his or her close relative or close relative by marriage is.

(2) An official whose duty is to participate in the making of common decisions specified in subsection (1) of this section is required to notify promptly a body concerned and his or her immediate superior or a person or body with the employment or appointment authority thereof and forego the making of the decision. The person or body who has designated an official as a member of a body making common decisions, may designate another person for the one-time substitution of the official.

(3) An official who is competent to make decisions specified in subsection (1) of this section solely, is required to remove himself or herself from making the decision and notify his or her immediate superior of a conflict of interest; the immediate superior shall designate another official to make the decision.

(4) In this section, a decision does not mean legislation of general application. § 26. Restriction on acceptance of gifts

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(1) An official shall not solicit, in connection with his or her duties of employment, gifts or other benefits made or granted by persons to him or her, his or her close relatives or close relatives by marriage.

(2) An official shall not accept gifts or consent to the benefits which are made or granted to him or her, his or her close relatives or close relatives by marriage, and the acceptance of which may directly or indirectly influence the impartial performance of his or her duties of employment or service.

(3) Gifts received in violation of the restrictions provided for in subsections (1) and (2) of this section shall belong to the employer of the corresponding official, unless otherwise provided by an international custom or diplomatic etiquette.

Chapter 5 Liability ยง 27. Liability for violation of Anti-corruption Act (1) An official who commits an act of corruption or unlawfully accepts remuneration or has relationships involving a risk of corruption or violates the restrictions on employment and activities or procedural restrictions or fails to submit a declaration of economic interests by the due date or submits incomplete or false information in the declaration shall be brought to justice pursuant to the procedure provided by law.

(2) The head of an agency and an official who are assigned the duties of a depositary of declaration shall bear disciplinary, administrative or criminal liability for failure to perform or unsatisfactory performance of duties and for unlawful disclosure of the contents of declarations.

(3) Acts listed in subsection (1) of this section shall constitute the basis for the release of an official from service or office, except in the cases provided for in specific Acts.

(07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357) ยง 271. Compensation for damage caused by acts of corruption (1) Persons who have suffered damage as a result of an act of corruption of an official have the right to demand compensation for such damage on the bases and pursuant to the procedure provided by law.

(2) Damages shall be claimed from an official by way of recourse.

(07.06.2001 entered into force 03.07.2001 - RT I 2001, 58, 357)

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ANNEX II - Criminal Code Chapter 8 Criminal Official Misconduct § 160. Definition of official (1) An official is a person who has an official position in an agency, enterprise or organisation based on any form of ownership and to whom administrative, supervisory, managerial, operational or organisational functions, or functions relating to the organisation of movement of tangible assets, or functions of a representative of state authority have been assigned by the state or the owner.

(2) Upon implementation of section 1642 of this Code, the persons listed in section 4 of the Anti-corruption Act (RT I 1995, 14, 170; 68, 1142) are deemed to be officials § 161. Misuse of official position Intentional misuse by an official of his or her official position, if it significantly violates the rights or interests of a person, enterprise, agency or organisation which are protected by law or to national interests, is punishable by a fine or up to three years' imprisonment. § 162. Negligence related to office An official who fails to perform or performs inadequately his or her official duties due to unconscientious or careless attitude towards the duties, thereby causing major proprietary damage or other serious consequences for the rights or interests of a person, enterprise, agency or organisation which are protected by law or to national interests, shall be punished by a fine or deprivation of the right of employment in a particular position or operation in a particular area of activity, or up to one year imprisonment. § 1621. Violation of restrictions on employment, activities or procedural restrictions established by law Violation of restrictions on employment, activities or procedural restrictions if: 1) significant proprietary damage or other serious consequence to the rights or interests of a person, the state or a local government protected by law has been caused thereby, or if 2) administrative punishment has been imposed on the offender for the same act, is punishable by up to two years' imprisonment together with deprivation of the right of employment in the particular office or operation in the particular area of activity or employment in the public service. § 1622. Failure to give notification of relationship involving risk of corruption Failure to give notification of a relationship involving the risk of corruption if 1) significant proprietary damage or other serious consequence to the rights or interests of a person, the state or a local government protected by law has been caused thereby, or if 2) administrative punishment has been imposed on the offender for the same act, is punishable by a fine or up to one year imprisonment together with deprivation of the right of employment in the particular office or operation in the particular area of activity or employment in the public service. § 1623. Failure to perform duties related to collection, depositing or verification of declarations of economic interests Failure to perform or unsatisfactory performance of the duties of collection, depositing or verification of declarations of economic interests by the head of an agency or another person responsible for the collection, depositing or verification of declarations of economic interests, if significant proprietary damage or other serious consequence to the rights or interests of a person, the state or a local government protected by law has been caused thereby, is punishable Status Report Estonia page 38

by up to two years' imprisonment together with deprivation of the right of employment in the particular office or operation in the particular area of activity or employment in the public service. § 164. Accepting a bribe (1) An official who, personally or through an intermediary, receives property, proprietary rights or other proprietary benefits as a bribe for the performing or refraining from performing an act in the interests of the person who gives the bribe, and the official is required to perform or can perform such act using his or her official position, shall be punished by up to four years' imprisonment and deprivation of the right of employment in a particular position or operation in a particular area of activity.

(2) Same acts, if committed: 1) repeatedly, or 2) by a group of persons, or 3) on a large-scale basis, or 4) using extortion, are punishable by up to seven years' imprisonment and deprivation of the right of employment in a particular position or operation in a particular area of activity.

(3) A person who receives a bribe shall be released from punishment if he or she, voluntarily, is the first to submit a written notification of the events after having received property, proprietary rights or other proprietary benefits but before he or she performs or refrains from performing an act in the interests of the person who gives the bribe. § 1641. Arranging bribe (1) Arranging a bribe is punishable by up to four years' imprisonment.

(2) Arranging a bribe, if committed: is punishable by up to seven years' imprisonment.

(3) A person who arranges a bribe shall be released from punishment if he or she arranges the bribe under extortion or if he or she, voluntarily, is the first to submit a written notification of the events after having arranged the bribe but before the person who receives the bribe performs or refrains from performing an act in the interests of the person who gives the bribe. § 1642. Act of corruption (1) For the purposes of this Act, an act of corruption is the making of undue or unlawful decisions or performance of such acts, or failure to make reasoned and lawful decisions or perform such acts by an official through the use of his or her official position for receiving income derived from corrupt practices or other self-serving purposes.

(2) An act of corruption is punishable by a fine or deprivation of the right of employment in a particular position or operation in a particular area of activity, or detention.

(3) An act of corruption, if it causes significant damage, is punishable by a fine and deprivation of the right of employment in a particular position or operation in a particular area of activity, or up to three years' imprisonment.

(4) Same act, if: 1) committed repeatedly, or 2) by a group of persons, or 3) if it causes major damage, or 4) if committed using extortion, is punishable by up to six years’ imprisonment or deprivation of the right of employment in a particular position or operation in a particular area of activity. § 1643. Submission of incomplete or false information in declaration of economic interests subject to disclosure (1) The submission of incomplete or false information in a declaration of economic interests subject to disclosure, is punishable by a fine or detention.

(2) The same act, if significant proprietary damage or other serious consequence to the rights or interests of a person, the state or a local government protected by law has been caused thereby, is punishable by a fine or up to one year imprisonment together with deprivation of the right of

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employment in the particular office or operation in the particular area of activity or employment in the public service. § 1644. Failure to submit declaration of economic interests not subject to disclosure, or presentation of false information therein Failure to submit a declaration of economic interests not subject to disclosure in accordance with the requirements during the term or presentation of incomplete or false information therein if 1) significant proprietary damage or other serious consequence to the rights or interests of a person, the state or a local government protected by law has been caused thereby, or if 2) administrative punishment has been imposed on the offender for the same act, is punishable by a fine or up to one year imprisonment together with deprivation of the right of employment in the particular office or operation in the particular area of activity or employment in the public service. § 1645. Submission of false information to person or agency or committee which verifies declarations of economic interests (1) The submission of incomplete or false information or failure to submit information in good time to a person or agency or the committee set out in the Anti-corruption Act which exercises lawful supervision over declarations of economic interests, is punishable by detention or up to six months’ imprisonment.

(2) The same act, if significant proprietary damage or other serious consequence to the rights or interests of a person, the state or a local government protected by law has been caused thereby, is punishable by six months to two years' imprisonment and deprivation of the right of employment in a particular position or operation in a particular area of activity. § 1646. Influence peddling The acceptance of remuneration by an official who promises to influence another official to make a decision favourable to the person who gives the remuneration, is punishable by up to two years' imprisonment. § 165. Giving bribe (1) Giving a bribe is punishable by up to four years' imprisonment.

(2) Giving a bribe, if committed: 1) repeatedly, or 2) by a person who has a criminal record for bribery, is punishable by up to seven years' imprisonment.

(3) A person who gives a bribe shall be released from punishment if a bribe is extorted from him or her or if he or she, voluntarily, is the first to submit a written notification of the events after having given the bribe but before the person who receives the bribe performs or refrains from performing an act in the interests of the person who gives the bribe. § 1651. Giving bribe to foreign official (1) Giving bribe to officials of foreign states or international organisations is punishable by up to four years' imprisonment.

(2) Same act, if committed: 1) repeatedly, or 2) by a person who has a criminal record for bribery, is punishable by up to seven years' imprisonment.

(3) A person who commits an act specified in subsection (1) of this section shall be released from punishment if a bribe is extorted form him or her or if he or she, voluntarily, is the first to submit a written notification of the events after having given the bribe but before the person who receives the bribe performs or refrains from performing an act in the interests of the person who gives the bribe.

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§ 166. Counterfeiting or falsification related to office (1) Counterfeiting or falsification of a document, if such act is related to an office and significantly violates the rights or interests of a person, enterprise, agency or organisation which are protected by law or to national interests, is punishable by a fine and deprivation of the right of employment in a particular position or operation in a particular area of activity, or up to three years' imprisonment and deprivation of the right of employment in a particular position or operation in a particular area of activity.

(2) Counterfeiting or falsification of an invoice, other payment document, declaration, balance sheet or other accounting document necessary for verification of the correctness of taxes, if such act is related to an office and is committed with the purpose of paying less taxes or if less taxes are paid as a result, is punishable by a fine and deprivation of the right of employment in a particular position or operation in a particular area of activity, or up to three years' imprisonment and deprivation of the right of employment in a particular position or operation in a particular area of activity. § 1663. Unlawful acceptance of remuneration by official The acceptance of a more than adequate remuneration determined by an Act or other legislation for the provision of services or making of decisions by an official, or acceptance of remuneration for services without charge if 1) significant proprietary damage or other serious consequence to the rights or interests of a person, the state or a local government protected by law has been caused thereby, or if 2) administrative punishment has been imposed on the offender for the same act, is punishable by up to two years' imprisonment and deprivation of the right of employment in a particular position or operation in a particular area of activity.

Chapter 7 Economic Criminal Offences § 14815. Money laundering (1) Money laundering is punishable by a fine or detention or up to four years’ imprisonment.

(2) Same acts, if committed: 1) by a group of persons, or 2) repeatedly, are punishable by two to seven years' imprisonment.

(3) Money laundering 1) on a large-scale basis, or 2) by a criminal organisation, is punishable by three to ten years' imprisonment. § 1488. Failure to comply with requirements of Money Laundering Prevention Act (1) Failure by an employee of a credit or financial institution or an undertaking specified in subsection 5 (1) of the Money Laundering Prevention Act (RT I 1998, 110, 1811; 2000, 84, 533) to comply with the identification requirement provided for in the Money Laundering Prevention Act is punishable by a fine, with or without deprivation of the right of employment in a particular position or operation in a particular area of activity.

(2) Intentional failure by a head or contact person of a credit or financial institution to notify the Financial Intelligence Unit of a suspicious transaction is punishable by a fine or up to one year imprisonment, with or without deprivation of the right of employment in the corresponding position or operation in the corresponding area of activity.

(3) Submission, knowingly, by a head or contact person of a credit or financial institution or an undertaking specified in subsection 5 (1) of the Money Laundering Prevention Act (RT I 1998, 110, 1811; 2000, 84, 533) of false data to the Financial Intelligence Unit is punishable by a fine or up to two years’ imprisonment, with or without deprivation of the right of employment in the corresponding position or operation in the corresponding area of activity.

(4) A head, contact person or other employee of a credit or financial institution or an undertaking specified in subsection 5 (1) of the Money Laundering Prevention Act (RT I 1998, 110, 1811; 2000, 84, 533) who informs a person whose activities involve a suspicious Status Report Estonia page 41

transaction, or a third person, of the forwarding of data to the Financial Intelligence Unit, shall be punished by a fine or up to two years’ imprisonment, with or without deprivation of the right of employment in the corresponding position or operation in the corresponding area of activity. § 1484. Inadequate organisation of accounting (1) Violation of the requirements provided for in legislation regulating accounting or reporting concerning the economic activities, including the commercial or financial activities, or assets of an economic unit, if such violation renders it impossible to correctly ascertain the economic performance, income, expenditure, profit, loss, debts, solvency or amount of assets of the economic unit, is punishable by a fine or deprivation of the right of employment in a particular position or operation in a particular area of activity, or up to one year imprisonment. § 1485. Falsification, concealment or destruction of accounting data (1) Falsification, concealment or destruction of accounting or reporting data concerning the economic activities, including the commercial and financial activities, or assets of an economic unit, if, as a result, it is wholly or partially impossible to ascertain the economic performance, income, expenditure, profit, loss, debts, solvency or the amount of assets of the economic unit, is punishable by a fine or deprivation of the right of employment in a particular position or operation in a particular area of activity, or up to two years' imprisonment. § 1486. Submission of incorrect data (1) Submission of knowingly incorrect data concerning the income, expenditure, profit, loss, debts or assets of an economic unit to state agencies with supervisory authority or to the committees, auditors or other competent officials appointed by such state agencies, is punishable by a fine or deprivation of the right of employment in a particular position or operation in a particular area of activity, or up to one year imprisonment.

(3) A person responsible for accounting shall be wholly or partially released from a punishment imposed for the acts specified in this section or sections 1484 or 1485 of the Criminal Code if he or she, in a timely manner, notifies the police or another competent body of a falsification, concealment or destruction of accounting data which has already been carried out, is in progress or intended. Notification is deemed to be timely if the information received is or was directly beneficial to the prevention of an offence or ascertaining of the offenders. § 14813. Liability of auditor An auditor who, in an audit report, intentionally presents incorrectly the facts that become known to him or her during the audit, shall be punished by a fine or up to one year imprisonment.

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ANNEX III - Penal Code Chapter 17 Offences Related to Office Division 1 Misuse of Authority § 288. Definition of official For the purposes of the Special Part of the Penal Code, “an official” means a person who holds office in a state or local government agency or organ, or in a legal person in public or private law, and to whom administrative, supervisory or managerial functions, or functions relating to the organisation of movement of assets, or functions of a representative of state authority have been assigned. § 289. Misuse of official position An official who unlawfully takes advantage of his or her official position with the intention to cause or who taking advantage of his or her official position causes significant damage to the rights or interests of another person that are protected by law or to public interests shall be punished by a pecuniary punishment or up to 5 years’ imprisonment. § 290. Negligence related to office An official who fails to perform or performs inadequately his or her official duties due to unconscientious or careless attitude towards the duties, thereby causing major damage to the rights or interests of another person that are protected by law or to public interests shall be punished by a pecuniary punishment or up to one year of imprisonment.

Division 2 Breach of Duty to Maintain Integrity § 293. Accepting of gratuities (1) An official who accepts property or other benefits or consents to the delivery of property or other benefits to a person associated with the official in return for a lawful act which he or she has committed or which there is reason to believe that he or she will commit, or for a lawful omission which he or she has committed or which there is reason to believe that he or she will commit and, in so doing, takes advantage of his or her official position and acts in the interests of the person offering the gratuities or any other person shall be punished by a pecuniary punishment or up to 3 years’ imprisonment.

(2) The same act, if committed: 1) at least twice; 2) by extorting gratuities; 3) by a group, or 4) on a large-scale basis, is punishable by up to 5 years’ imprisonment.

(3) An act provided for in subsection (1) or (2) of this section, if committed by a legal person, is punishable by a pecuniary punishment. § 294. Accepting bribe (1) An official who accepts property or other benefits or consents to the delivery of property or other benefits to a person associated with the official in return for an unlawful act which he or she has committed or which there is reason to believe that he or she will commit, or for an unlawful omission which he or she has committed or which there is reason to believe that he or

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she will commit taking advantage of his or her official position in the interests of the person offering the bribe or any other person shall be punished by 1 to 5 years’ imprisonment.

(2) The same act, if committed: 1) at least twice; 2) by extorting bribe; 3) by a group, or 4) on a large-scale basis, is punishable by 2 to 10 years’ imprisonment.

(3) An act provided for in subsection (1) of this section, if committed by a legal person, is punishable by a pecuniary punishment.

(4) An act provided for in subsection (2) of this section, if committed by a legal person, is punishable by a pecuniary punishment or compulsory dissolution. § 295. Arranging receipt of gratuities (1) Arranging a receipt of gratuity is punishable by a pecuniary punishment or up to one year of imprisonment.

(2) The same act, if committed: 1) at least twice, or 2) by taking advantage of an official position, is punishable by a pecuniary punishment or up to 3 years’ imprisonment.

(3) An act provided for in subsection (1) or (2) of this section, if committed by a legal person, is punishable by a pecuniary punishment. § 296. Arranging bribe (1) Arranging a bribe is punishable by a pecuniary punishment or up to one year of imprisonment.

(2) The same act, if committed: 1) at least twice, or 2) by taking advantage of an official position, is punishable by a pecuniary punishment or up to 3 years’ imprisonment.

(3) An act provided for in subsection (1) or (2) of this section, if committed by a legal person, is punishable by a pecuniary punishment. § 297. Granting of gratuities (1) Granting a gratuity is punishable by a pecuniary punishment or up to 3 years’ imprisonment.

(2) The same act, if committed at least twice, is punishable by up to 5 years’ imprisonment.

(3) An act provided for in subsection (1) or (2) of this section, if committed by a legal person, is punishable by a pecuniary punishment. § 298. Giving bribe (1) Giving a bribe is punishable by 1 to 5 years’ imprisonment.

(2) The same act, if committed at least twice, is punishable by 2 to 10 years’ imprisonment.

(3) An act provided for in subsection (1) of this section, if committed by a legal person, is punishable by a pecuniary punishment.

(4) An act provided for in subsection (2) of this section, if committed by a legal person, is punishable by a pecuniary punishment or compulsory dissolution. § 300. Violation of requirements for public procurement An official who creates unjustified preferential conditions or advantages for a participant in an invitation to tender or otherwise violates the requirements for public procurement shall be punished by a pecuniary punishment or up to one year of imprisonment. § 301. Application of confiscation

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A court may, pursuant to the provisions of § 83 of this Code, apply confiscation of an object which was the direct object of the commission of an offence provided for in §§ 293 to 299 of this Code. § 379. Failure to submit or incorrect submission of results of audit or special audit (1) An auditor or a person conducting a special audit who in a report fails to submit or incorrectly submits the facts which became known to him or her in the conduct of an audit or special audit shall be punished by a pecuniary punishment or up to one year of imprisonment.

(2) The same act, if significant damage is thereby caused, is punishable by a pecuniary punishment or up to 3 years’ imprisonment. § 381. Incorrect presentation of financial status Failure to submit information or submission of incorrect information to shareholders, auditors, persons conducting a special audit or to the public concerning the financial status of a company is punishable by a pecuniary punishment or up to 3 years’ imprisonment. § 382. Submission of incorrect information to auditor or person conducting special audit A founder of or a shareholder of a company, who fails to submit information or submits incorrect information to an auditor or a person conducting a special audit, if such information does not concern the financial status of the company, shall be punished by a pecuniary punishment or up to one year of imprisonment.

Division 5 Offences Relating to Money Laundering § 394. Money laundering (1) Money laundering is punishable by a pecuniary punishment or up to 5 years’ imprisonment.

(2) The same act, if committed: 1) by a group; 2) at least twice; 3) on a large-scale basis, or 4) by a criminal organisation, is punishable by 2 to 10 years’ imprisonment.

(3) An act provided for in subsection (1) of this section, if committed by a legal person, is punishable by a pecuniary punishment.

(4) An act provided for in subsection (2) of this section, if committed by a legal person, is punishable by a pecuniary punishment or compulsory dissolution.

(5) A court may, pursuant to the provisions of § 83 of this Code, apply confiscation of an object which was the direct object of the commission of an offence provided for in this section. § 395. Failure to comply with identification requirement Failure by an employee of a credit or financial institution to comply with the identification requirement provided for in the Money Laundering Prevention Act (RT I 1998, 110, 1811; 2000, 84, 533) is punishable by a pecuniary punishment. § 396. Failure to report suspicious transaction, submission of incorrect information The head or a contact person of a credit or financial institution, or an undertaking, who fails to report a suspicious transaction or submits incorrect information to the Financial Intelligence Unit shall be punished by a pecuniary punishment or up to one year of imprisonment.

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ANNEX IV – Provisions of the Penal Code on Jurisdiction § 6. Territorial applicability of penal law (1) The penal law of Estonia applies to acts committed within the territory of Estonia.

(2) The penal law of Estonia applies to acts committed on board of or against ships or aircraft registered in Estonia, regardless of the location of the ship or aircraft at the time of commission of the offence or the penal law of the country where the offence is committed. § 7. Applicability of penal law by reason of person concerned The penal law of Estonia applies to an act committed outside the territory of Estonia if such act constitutes a criminal offence pursuant to the penal law of Estonia and is punishable at the place of commission of the act, or if no penal power is applicable at the place of commission of the act and if: 1) a request to punish the person has been submitted on the basis of an international agreement or; 2) the act is committed against a citizen of Estonia or a legal person registered in Estonia or 3) the offender is a citizen of Estonia at the time of commission of the act or becomes a citizen of Estonia after the commission of the act, or if the offender is an alien who has been detained in Estonia and is not extradited. § 8. Applicability of penal law to acts against internationally protected legal rights Regardless of the law of the place of commission of an act, the penal law of Estonia shall apply to an act committed outside the territory of Estonia if the punishability of the act arises from an international agreement binding on Estonia. § 9. Applicability of penal law to acts against legal rights of Estonia Regardless of the law of the place of commission of an act, the penal law of Estonia applies to acts committed outside the territory of Estonia if according to the penal law of Estonia the act is a criminal offence in the first degree and if such act: 1) causes damage to the life or health of the population of Estonia; 2) interferes with the exercise of state authority or the defence capability of Estonia, or 3) causes damage to the environment.

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ANNEX V – Code of Criminal Procedure Part X International Co-operation Chapter 35 International Co-operation In the Field of Criminal Procedure § 397. General principles (1) Requests for legal assistance in criminal matters shall be adjudicated on the basis of the international agreements of the Republic of Estonia. Legal assistance to states with whom an international agreement has not been entered into shall be provided pursuant to the principles arising from the criminal conventions of the Council of Europe which have been ratified by the Republic of Estonia, and this Part.

(2) The provisions of this Part apply unless otherwise provided by an international agreement of the Republic of Estonia.

(3) Activities regulated by this Part shall be performed pursuant to the provisions of this Code unless otherwise provided for in this Part. § 398. Legal authorities (1) The courts, the Public Prosecutor’s Office, the Ministry of Justice and the Ministry of Internal Affairs of the Republic of Estonia are the legal authorities who submit applications to foreign states for legal assistance and adjudicate, according to their competence, the applications for legal assistance received from foreign states.

(2) The Public Prosecutor's Office shall adjudicate the applications for legal assistance of the International Criminal Court. § 399. Acceptance of evidence collected in foreign state Evidence collected in a foreign state is accepted as evidence in criminal procedure in the Republic of Estonia unless the evidence is collected by an activity, which is contrary to the principles of the criminal procedure of Estonia. § 400. Activities of prosecutor in Public Prosecutor’s Office upon receipt of application for extradition of person to foreign state (1) The Minister of Justice shall send an application received from a foreign state for the extradition of a person immediately to the Public Prosecutor’s Office. If an application for extradition is received directly by the Public Prosecutor’s Office, a prosecutor in the Public Prosecutor’s office shall notify the Ministry of Justice of the application immediately.

(2) A prosecutor in the Public Prosecutor’s Office is required to review a received application for extradition immediately and verify whether all necessary documents have been annexed to the application. If necessary, additional information is requested from the foreign state through the mediation of the Ministry of Justice and a term for reply is determined.

(3) A properly prepared application for extradition is immediately sent to the court by a prosecutor in the Public Prosecutor’s Office. § 401. Jurisdiction Hearing of applications for extradition of persons to foreign states is within the jurisdiction of the Tallinn City Court. § 402. Taking into custody and holding in custody (1) After a court has received an application for the extradition of a person to a foreign state, a judge shall, on the basis of a reasoned order of a preliminary investigator or on the proposal of a prosecutor in the Public Prosecutor’s Office, decide the grant of a permission for the taking of the person to be extradited into custody. A refusal to take a person into custody shall be reasoned.

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(2) In cases of urgency, a city or county court judge may grant a permission for the taking of a person into custody before the receipt of an application for the extradition of the person to a foreign state, if it is requested by a competent authority of the foreign state and if the authority confirms that an order for taking the person into custody exists or that a judgment of conviction has entered into force with regard to the person and an application for extradition will be sent immediately.

(3) A person may be released from custody if a foreign state fails to submit an application for extradition and the required documents within eighteen days after the detention of the person. A person shall be released from custody if an application for extradition has not been received within forty days. § 403. Right to representation (1) A person has the right to representation during the whole proceedings regarding extradition.

Sworn advocates or the senior clerks or clerks thereof, and other persons who have the permission of the court may be representatives.

(2) If a person requests the participation of a representative but is unable to pay for legal assistance, a representative is appointed for the person pursuant to the procedure provided for in subsection 361 (2) of this Code. § 404. Extradition of citizen of foreign state or stateless person to foreign state with his or her consent (1) A citizen of a foreign state or a stateless person may be immediately extradited on the basis of his or her written consent given in the presence of a representative. A proposal to consent to extradition to a foreign state is made upon the detention of the person to be extradited. A consent is immediately sent to the Minister of Justice who shall decide the extradition of the person to the foreign state.

(2) A decision of the Minister of Justice regarding the extradition of a citizen of a foreign state or a stateless person shall be immediately sent to the Police Board for execution. A decision by which extradition is refused shall be sent to the Public Prosecutor’s Office for the commencement of criminal proceedings. § 405. Court proceedings regarding extradition of person to foreign state (1) A court session shall be held not later than within ten twenty-four hour periods after the court receives an application for the extradition of a person to a foreign state.

(2) Applications for extradition shall be heard by judges sitting alone.

(3) The participation of a prosecutor from the Public Prosecutor’s Office in proceedings regarding extradition is mandatory.

(4) A court shall summon to a court session a citizen of a foreign state or a stateless person if a proposal to consent to the extradition has not been made to him or her upon detention or if he or she has refused to consent thereto, or a citizen of the Republic of Estonia to be extradited and shall notify the person to be extradited of the receipt of an application for extradition against his or her signature in a language the person understands, shall explain the facts on which extradition is based and the possible course of extradition, shall hear the opinion and objections of the person, and shall verify whether extradition is legally justified. § 406. Court rulings in proceedings regarding extradition of person to foreign state (1) Upon adjudication of an application for the extradition of a person to a foreign state, a court shall make one of the following rulings: 1) to support the extradition of the person to the foreign state; 2) not to support the extradition of the person to the foreign state if the extradition is not legally justified.

(2) A ruling shall set out the time and place of the making of the ruling; the given name and surname of the judge; the given name, surname and the time and place of birth of the person to be extradited; the application being heard, and the content of the ruling. Issues regarding the

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taking of the person to be extradited into custody or his or her release from custody shall also be adjudicated by a ruling.

(3) A judge shall send an extract of a ruling provided for in clause (1) 1) of this section and an application for extradition to the Public Prosecutor’s Office where a draft decision on extradition shall be prepared.

(4) If extradition is not legally justified, the proceedings regarding extradition shall be terminated. § 407. Decision on extradition of person to foreign state or on refusal thereof (1) Extradition of citizens of the Republic of Estonia shall be decided by the Government of the Republic.

(2) Extradition of citizens of foreign states or stateless persons shall be decided by the Minister of Justice.

(3) A reasoned decision on extradition or on refusal thereof shall be made immediately. A decision on extradition shall be sent to the Police Board for enforcement; a decision by which extradition is refused shall be sent to the Public Prosecutor’s Office for the commencement of criminal proceedings.

(4) A decision on extradition shall be communicated to the person to be extradited in a language he or she understands and against his or her signature.

(5) If a decision on extradition is not contested or the term for contestation of the decision expires, the time and place for the transfer of the person to a foreign state shall be determined. § 408. Submission of application for extradition to foreign state (1) If a person suspected of the commission of a criminal offence, the accused or accused at trial is in a foreign state and absconds the criminal proceeding, or if a convicted offender absconds the enforcement of a court judgment and it is necessary to request his or her extradition, a judge shall, on the basis of a reasoned order of a preliminary investigator and on the proposal of a prosecutor in the Public Prosecutor’s Office, decide the grant of permission for the taking of the person into custody.

(2) A prosecutor in the Public Prosecutor’s Office prepares an application for the extradition of a person from a foreign state. An application shall be in writing and have the following annexes: 1) a certified copy of a judgement of conviction or a ruling on taking into custody; 2) data relating to the criminal offence in connection to which extradition is requested; the time and place of commission of the criminal offence, and a reference to the corresponding section, subsection and clause of criminal law; 3) copies of necessary legislation; 4) a description of the person whose extradition is requested and data to facilitate the establishment of his or her identity and citizenship; (3) The submission of an application for extradition shall be decided by the Minister of Justice or a legislative authority appointed by him or her.

(4) In cases of urgency, a foreign state may be requested to take the person to be extradited into provisional custody before the submission of an application for extradition.

(5) The guarantees with regard to the treatment of an extradited person granted to a foreign state upon application for extradition are mandatory to the Republic of Estonia. § 409. Transit of person to be extradited A prosecutor of the Public Prosecutor’s Office shall, through the mediation of the Ministry of Justice, request a permission for the transit of a person to be extradited and decide the grant of permission for transit through the Republic of Estonia. § 410. Commencement and assumption of criminal proceedings regarding criminal offences committed outside of territory of Republic of Estonia (1) The Chief Public Prosecutor shall:

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1) pursuant to § 5 of the Criminal Code, commence criminal proceedings regarding an act with elements of a criminal offence which is committed outside of the territory of the Republic of Estonia; 2) decide the transfer, discontinuance or suspension of criminal proceedings regarding a criminal offence to which foreign criminal law is applicable; 3) decide the transfer of proceedings and the commencement of criminal proceedings if extradition of a person to a foreign state is refused.

(2) In criminal matters specified in this section, a summary of charges shall be approved and the criminal matter shall be sent to the court by the Chief Public Prosecutor pursuant to the procedure prescribed in this Code.

(3) Hearing of criminal matters specified in this section is within the jurisdiction of the Tallinn City Court. § 411. Seizure and transfer of property at request of foreign state (1) Seizure of property for securing a civil action or seizure may be carried out also if the criminal proceedings are conducted in a foreign state and the competent authorities of the foreign state have requested the transfer of the property, provided that the act which is the basis for the request is punishable pursuant to criminal procedure both in Estonia and in the place of commission of the act and the satisfaction of the application is in compliance with the legislation of the Republic of Estonia.

(2) An application shall be satisfied if the property to be transferred: 1) may be needed in the requesting state as physical evidence or 2) has been acquired as a result of a criminal offence and, at the moment of taking a person whose extradition is requested into custody, is in the possession of the person, or is found later.

(3) Seizure of property shall be carried out pursuant to the procedure provided for in this Code.

(4) The rights of third persons to transferred property shall be retained. In the case of existence of such rights, property shall be returned to the party who received the application immediately after the court without charge. § 412. Permission of court for transfer of property to foreign state (1) A permission for the transfer of property to a foreign state is granted by a county or city court judge on the basis of a reasoned ruling submitted to him or her.

(2) Upon granting a permission, a judge shall decide whether the transfer of property is permitted by the state and is practicable.

(3) If a county or city court judge refuses to grant a permission for the transfer of property, he or she shall make a reasoned ruling. The county or city court judge shall sign the ruling and certify it by the court seal. § 413. Submission of application for seizure or transfer of property to foreign state An application for the seizure or transfer of property shall be submitted to a foreign state by the Minister of Justice or a legal authority appointed by him or her. § 4131. Mutual assistance upon execution of court judgment of foreign state Assistance may be provided to a foreign state upon imposition of an imposed punishment or other sanctions if the foreign state submits a valid application to the Ministry of Justice and appends the original or certified copy of the court judgment which has entered into force. If necessary, additional information shall be requested from the foreign state by a specified date.

The Ministry of Justice shall send the application immediately to the Public Prosecutor’s Office where the application is verified and promptly forwarded to a court. § 4132. Scope of assistance (1) It is prohibited to provide assistance upon imposition of a punishment or other sanction imposed in a foreign state if 1) the judgment which is the basis for the application is not final or has not entered into force; Status Report Estonia page 50

2) the judgment is not made by an independent and impartial court; 3) the judgment is made on default; 4) the right of defence is not ensured to the accused or criminal proceedings are not conducted in a language which he or she understands; 5) the person is punished because of his or her race, nationality, religious or political values; 6) an act for the commission of which a punishment or other sanction has been imposed, which does not bring about punishment pursuant to Estonian law or for which Estonian law does not prescribe such punishment or sanction; 7) an Estonian court has convicted a person of the same charge, with respect to him or her criminal proceedings have not been commenced or criminal proceedings have been terminated or 8) pursuant to Estonian acts execution of the court judgment has expired.

(2) If a judgment to confiscate made in a foreign state pertains to a third person, it shall not be executed if 1) the third person has not been given the opportunity to protect his or her interests or 2) the judgment is not in accordance with a civil law judgment made in the same matter pursuant to Estonian law. ยง 4133. Jurisdiction The Tallinn City Court shall decide on recognition of a court judgment of a foreign state. ยง 4134. Right to representation If a foreign state applies for the assumption of execution of confiscation, a representative shall be provided to a convicted offender and third persons. Sworn advocates or the senior clerks or clerks thereof, and other persons who have the permission of the court may be representatives. ยง 4135. Court session (1) A judge shall hear the recognition of a court judgment of a foreign state sitting alone within ten working days after the court receives the application. If necessary, additional information shall be requested through the Ministry of Justice by a specified date.

(2) Upon deciding on confiscation, the participation of third persons in the proceedings is mandatory.

(3) The participation of a public prosecutor in a court session is mandatory. ยง 4136. Court rulings (1) A court shall make one of the following rulings: 1) shall declare the execution of a court judgment of a foreign state admissible or 2) shall declare the execution of a court judgment of a foreign state non-admissible.

(2) If the execution of a court judgment of a foreign state is admissible, the punishment imposed in the foreign state shall be qualified. A court shall send the copy of a court ruling to the Ministry of Justice who notifies the foreign state thereof. ยง 4137. Qualification of punishment imposed in foreign state (1) If the execution of a court judgment of a foreign state is admissible, a court shall determine the punishment subject to execution in Estonia. A punishment imposed in a foreign state shall be compared to a punishment prescribed for the same act in the Estonian Criminal Code.

(2) The qualified punishment shall by nature as much as possible correspond to the punishment imposed in a foreign state. A court shall take into account the degree of the punishment imposed in a foreign state but it shall not exceed the maximum rate prescribed in the sanction of the corresponding section of the Criminal Code.

(3) If the length of sentence has not been determined in a foreign state, a court shall do it in compliance with the principles of the Criminal Code.

(4) It is not permitted to aggravate a punishment imposed in a foreign state.

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(5) Upon conditional deferral of the enforcement of a punishment in a foreign state or release of a person on parole, a court shall do the same pursuant to the corresponding provisions of the Criminal Code.

(6) A fine and a sum of money subject to confiscation shall be converted into Estonian kroons on the basis of the exchange rate on the date of recognition. § 4138. Provision of assistance upon confiscation In the case of confiscation, assistance shall be provided to a foreign state if a court has considered the execution of the court judgment of the foreign state admissible. § 4139. Confiscated property The provisions of this Code apply to confiscated property unless the states have agreed otherwise. § 414. Continuation of enforcement of sentence of person sentenced in foreign state in Republic of Estonia (1) Under the conditions provided for in the European Convention on the Transfer of Sentenced Persons, the following procedures may be applied with regard to persons sentenced in a foreign state: 1) to continue the enforcement of an imposed sentence without the amendment thereof or 2) to continue the enforcement of an imposed sentence without a legal reassessment and bring the charges, on the basis of a court ruling, into conformity with the sanctions prescribed for a similar criminal offence by the criminal acts in force in the Republic of Estonia, or 3) to reassess the charges by a court judgement and substitute the imposed sentence by sanctions prescribed for the same criminal offence in the Republic of Estonia.

(2) The amendment of a sentence imposed by a court of a foreign state and the legal reassessment of charges on the basis of a proposal of a prosecutor in the Public Prosecutor’s Office is within the jurisdiction of the Tallinn City Court. The participation of a prosecutor from the Public Prosecutor’s Office in a court session is mandatory.

(3) At the request of a foreign state, the Minister of Justice shall, before the transfer of a person sentenced in the foreign state, specify which of the procedures provided for in subsection (1) of this section shall be applied. A proposal shall be made to the Minister of Justice by a prosecutor in the Public Prosecutor’s Office. § 415. Co-operation with International Criminal Court (1) In co-operation with the International Criminal Court, the acts of the bodies conducting proceedings shall be based on this Code and the corresponding international legislation.

(2) Upon receipt of an application for detention of a person from the International Criminal Court, the Public Prosecutor's Office shall organise the detention of the person specified in the application pursuant to the procedure provided for in § 1081 of this Code and the taking into custody of the person pursuant to the procedure provided for in § 73 of this Code.

(3) Upon performance of procedural acts in Estonia, prosecutors of the International Criminal Court have all the rights and obligations of prosecutors as prescribed in this Code. Prosecutors of the International Criminal Court shall perform procedural acts pursuant to the procedure provided for in this Code.

(4) If an application for legal assistance of the International Criminal Court is contrary to an application for legal assistance of a foreign state, the application shall be adjudicated pursuant to the procedure provided for in an international agreement.

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