Crime of Illegal Financing of Political Parties

The crime of illegal financing of political parties is a crime that is becoming increasingly relevant within the criminal field due to its direct implication in the transparency and fairness of the democratic system.

Regulation of the crime of illegal party financing

The amendment to the Penal Code carried out by Organic Law 1/2015, of March 30, introduces this crime.

Specifically, Article 304 bis of the Penal Code establishes the following:

1. Anyone who receives donations or contributions intended for a political party, federation, coalition or group of electors in violation of the provisions of Article 5. One of Organic Law 8/2007 , of July 4, on the financing of political parties, shall be punished with a fine of three to five times its value.
   
2. The aforementioned acts will be punished with a prison sentence of six months to four years and a fine of three to five times their value or the excess when:
   
   • a) These are donations included in Article 5. One, letters a) oc) of Organic Law 8/2007 , of July 4, on the financing of political parties, of an amount greater than 500,000 euros , or that exceed by this amount the limit set in letter b) of that provision, when it is the one infringed.
     
   • b) These are donations covered by Article 7.Two of Organic Law 8/2007 , of July 4, on the financing of political parties, which exceed the amount of 100,000 euros.
     
3. If the facts referred to in the previous section are of particular gravity, the penalty will be imposed in its upper half, and may even reach the next higher degree.
   
4. The same penalties will be imposed, in their respective cases, on anyone who delivers donations or contributions intended for a political party, federation, coalition or group of electors, either directly or through an intermediary, in any of the cases mentioned above.
   
5. The same penalties shall be imposed when, in accordance with the provisions of Article 31 bis of this Code, a legal entity is responsible for the acts. Subject to the rules established in Article 66 bis, judges and courts may also impose the penalties set forth in subparagraphs (b) and (ag) of paragraph 7 of Article 33.

Criminal conduct and penalties associated with the crime of illegal financing of political parties

In short, Article 304 bis of the Penal Code establishes the conduct constituting the crime of illegal financing of political parties and the penalties associated with said conduct, as follows:

1. Receiving illegal donations : Any person who receives donations or contributions intended for a political party, federation, coalition or group of electors, in violation of the provisions of article 5.1 of Organic Law 8/2007 , will be punished with a fine ranging from three to five times the value of the illegal contribution.
   
2. Prison sentences : If illegal donations exceed certain thresholds, prison sentences of six months to four years will be imposed, in addition to the aforementioned fine. This applies, for example, to donations exceeding €500,000 or contributions that exceed the limit set by law.
   
3. Additional penalties : The same penalties apply to anyone who makes illegal donations, directly or through intermediaries, in the aforementioned cases. Furthermore, legal entities may also be held liable, as stipulated in Article 31 bis of the Criminal Code, which means they may be subject to the penalties set forth in Article 33 of the same code.

Examples of the Crime of Illegal Financing of Political Parties

The following are some practical examples to illustrate how the crime of illegal financing of political parties is committed:

1. Case of Excessive Donation : A businessman donates €600,000 to a political party, exceeding the €500,000 limit allowed by Organic Law 8/2007 . Although the donation is made transparently, the amount exceeds the legal limit, so both the donor and the recipient (the political party) may be sanctioned under Article 304 bis of the Criminal Code.
   
2. Covert Contributions Through Third Parties : A large corporation seeks to influence a political party, but since the Penal Code and Organic Law 8/2007 prohibit direct corporate donations, the corporation uses various employees to make personal donations on its behalf. This “donation by proxy” mechanism is a violation of the law, and both the company and the employees involved can be punished.
   
3. Funding through Covert Activities : A political party organizes events with the support of large corporations, but the contributions received from these corporations are disguised as “sponsorship” to circumvent legal restrictions on party financing. This type of covert contribution can be considered an illegal financing offense if it does not comply with the terms established by law.

The Alvise Pérez Case and the Intervention of Nieto Enriquez Criminal Lawyers

Regarding the illegal financing of political parties, a recent case has highlighted the scope of the penalties outlined in Article 304 bis of the Spanish Penal Code. The case of Alvise Pérez , as reported by InfoLibre , could result in a fine of between €300,000 and €500,000 for irregularities in the financing of social media campaigns.

Lawyer Cristina Nieto, founding partner of the Barcelona-based criminal law firm Nieto Enríquez Abogados Penalistas, explains that the crime of illegal party financing, introduced in the 2015 reform of the Penal Code , is relatively new, and therefore there is not yet extensive case law on the matter. According to Nieto , the crime is committed with the delivery and receipt of the donation, and both the donor and the recipient can be held liable. She also emphasizes that the political party receiving the donation can also be held criminally liable, facing penalties such as a ban on receiving subsidies, suspension of activities for up to five years, or the closure of its premises.

The illegal financing of political parties is a crime that threatens democratic principles and transparency in political life. The severe penalties provided for by criminal law aim not only to punish offenders but also to prevent such conduct from recurring, thus ensuring greater fairness and control in the political financing process in Spain.