The Bribery Act 2010 will come into full force and effect on 1st July 2011. It essentially makes it illegal to give or accept bribes in the UK, as well as overseas.
It applies to all commercial organisations whether they are a corporate entity or partnership, even if they are registered or incorporated overseas, as long as any business is conducted in the UK by that commercial organisation.
Individuals who are guilty of bribery can potentially face a maximum of 10 years in prison as well as an unlimited fine. Companies who fail to prevent bribery or put in place adequate procedures can be held liable for the corrupt actions of certain persons acting on their behalf and may be subject to a large fine also.
A relevant commercial organisation ("C") is guilty of an offence if a person ("A") associated with C bribes another person intending:
1) to obtain or retain business for C or
2) to obtain or retain an advantage in the conduct of business for C.
It is however a defence for C to prove that C has in place adequate procedures designed to prevent persons associated with C from undertaking such conduct.
The guidance which the Government has issued is formulated around six general principles, designed to be of general application across all business sectors and all types and size of business. They are:
• Principle 1 - Proportionate procedures;
• Principle 2 - Top level commitment;
• Principle 3 - Risk Assessment;
• Principle 4 - Due Diligence;
• Principle 5 - Communication (including training); and
• Principle 6 - Monitoring and review.
All businesses should keep full records, educate staff, and when entertaining clients should consider carefully what is reasonable and appropriate in the circumstances. Those relevant businesses operating in foreign countries where corruption is commonplace should be particularly vigilant and understand who is acting on their behalf as well as who they are dealing with.
The guidance can be found here;
http://www.justice.gov.uk/downloads/consultations/bribery-response-consultation.pdf
For further information or advice please email our Company and Commercial solicitors or telephone 0208 464 4242
