In short
- Dati is accused of receiving 900,000 euros for consulting work she allegedly did not perform while serving as an MEP and attorney.
- Prosecutors also seek a four-year jail term for former Renault-Nissan CEO Carlos Ghosn, who is being tried in absentia.
What happened
French prosecutors have requested a four-year prison sentence for Rachida Dati, with two years suspended and two years of house arrest, over allegations of corruption and influence peddling related to her lobbying work for Renault-Nissan between 2009 and 2013. Dati allegedly received 900,000 euros for consulting services to a Dutch subsidiary of Renault-Nissan without performing any actual work.
Carlos Ghosn, former CEO of Renault-Nissan, is also facing a requested four-year jail term in absentia on charges including abuse of corporate assets, breach of trust, corruption, and active trading in influence. The trial is taking place in Paris, and Dati currently serves as the mayor of a Paris arrondissement.
Prosecutors accuse Dati of receiving 900,000 euros (over $1 million) for providing consulting services to a Dutch subsidiary of Renault-Nissan without actually performing any work, all while serving as a Member of the European Parliament and working as an attorney.
In numbers
- 900,000 euros alleged payments to Dati
What compliance teams should check
- Review all consulting payments to politically exposed persons (PEPs) for Renault-Nissan and its Dutch subsidiaries between 2009 and 2013.
- Screen for transactions involving Rachida Dati and Carlos Ghosn, focusing on potential abuse of corporate assets and influence peddling typologies.
- Assess controls for identifying and reporting consulting contracts where no actual work is performed, especially involving MEPs or attorneys.
Why it matters
This case highlights the AML/CFT risks associated with payments to politically exposed persons (PEPs) for consulting services, especially when there is little evidence of actual work performed. The allegations against Rachida Dati and Carlos Ghosn underscore the importance of robust due diligence and monitoring of transactions involving senior public officials and corporate executives. Compliance officers should ensure that controls are in place to detect and report suspicious payments that may mask corruption, influence peddling, or abuse of corporate assets.
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