The Bribery Act 2010

The Bribery Act 2010 received Royal Assent on 8 April 2010 and it is expected to be implemented from 1 October 2010.

The new act means that if a member of your staff is involved in bribery in the course of their business, then your company could be held liable in the UK; this applies even if the event occurs overseas.

The act sets out four main offences:

• Offering, promising or giving a bribe
• Requesting, agreeing to receive, or accepting a bribe
• Bribing a foreign public official
• Failing to prevent bribery

Your company will fall foul of the Act if it fails to prevent an act of bribery being committed “in connection with its business by any person associated with it”.  This far-reaching definition doesn’t just include employees but catches directors, agents and subsidiaries.

The act also is drawn widely such that “failing to prevent bribery” could mean that by simply tolerating it or failing to investigate suspicious transactions you are deemed to be breaking the law.

The penalties under the Act are severe, for directors it could lead to a maximum of ten years in prison.  Companies face unlimited fines.

A key defence available to your company is to show that you have in place “adequate procedures” to prevent bribery and corruption.  Further details will be published as to what “adequate procedures” mean but in the meantime it would be sensible to ensure you have a robust clients/suppliers policy.  This should include insisting that all gifts to directors and staff are declared so that you can decide if such a gift is a token thank-you or something given to exert influence.

This policy should be broadcast to all directors, employees etc.

Example wording to be included in Staff Handbook/Company Manual etc to cover the broader issues is as follows:

Code of Ethics

Honesty

The company is committed to the highest standards of ethical conduct in all that it does.  The company complies with all applicable legal and regulatory requirements governing business relationships and trade (both in the UK and Overseas).  The Company believes that honesty and integrity engender trust and it conducts its business in accordance with all the applicable laws and regulations of all countries in which it does business and requires that its directors, employees, agents and advisers also comply with such laws.

Prohibition of Bribery, Corruption and Extortion

The Company does not offer, promise, give, demand or accept bribes or other unethical inducements, including extortion, in order to obtain, retain or give business or other advantage and takes all reasonable measures within its power to ensure that its directors, employees, advisers and agents follow the same practice.

Call your PEM contact for further details on 01223 720222