In a sea change in the way in the way in which businesses are being monitored the Bribery Act introduces a new strict liability corporate offence of failing to prevent bribery. 

The offence applies equally to UK companies, but also to any companies or partnerships that carry on business or a part of a business in the UK. The only defence to it requires a corporate defendant to establish that it had in place adequate procedures designed to prevent bribery.

Key Question for Businesses

The key question businesses must now address is what will constitute these adequate procedures. This will need to be considered by every business in a way that focuses on its own risks and dynamics so that an accurate assessment of what is reasonably required to protect that business can be made and then acted upon appropriately.

Businesses must ensure that training, policies and systems are in place in compliance with the Bribery Act. Section 9 of the Act requires The Secretary of State to publish guidance about procedures that relevant commercial organisations can put in place to prevent persons associated with them from bribing.

Principles for Bribery Prevention as stipulated in the UK Bribery Act Guidance are:

1. Risk Assessment – knowing and keeping up to date with the bribery risks you face in your sector and market;
2. Top level commitment –concerns establishing a culture across the organisation in which bribery is unacceptable. If your business is small or medium sized this may not require much sophistication but the theme is making the message clear, unambiguous and regularly made to all staff and business partners;
3. Due diligence – knowing who you do business with; knowing why, when and to whom you are releasing funds and seeking reciprocal anti-bribery agreements ; and being in a position to feel confident that business relationships are transparent and ethical;
4. Clear, Practical and Accessible Policies and Procedures – concerns applying them to everyone you employ and business partners under your effective control and covering all relevant risks such as political and charitable contributions, gifts and hospitality, promotional expenses, and responding to demands for facilitation demands or when an allegation of bribery comes to light.
5. Effective implementation – going beyond ‘paper compliance’ to embedding anti-bribery in your organisation’s internal controls, recruitment and remuneration policies, operations, communications and training on practical business issues.
6. Monitoring and review – relates to auditing and financial controls that are sensitive to bribery and are transparent, considering how regularly you need to review your policies and procedures, and whether external verification would help.

How we can help

The RJW team are acknowledged experts in this field. Rod Fletcher and Jeremy Summers represented Balfour Beatty throughout the ground breaking Bibliotheca investigation the settlement of which formed the basis for the SFO’s “APPROACH OF THE SERIOUS FRAUD OFFICE TO DEALING WITH OVERSEAS CORRUPTION” published in July 2009.

Since that time we have been instructed by a number of corporates and individual clients seeking advice in relation to anti-corruption training and systems in addition to requiring assistance in relation to ongoing high profile investigations both in the UK and internationally.

Members of our team are regularly published and asked to speak on the Act and corruption generally by leading legal educational providers and national media.

Reflecting the fact that we have over 25 years experience in this field, we were highly recommended in the inaugural business crime category of Legal 500 2010.

We would be pleased to discuss with you how RJW’s cutting edge experience and expertise could assist your business is in compliance with the Bribery Act regulations.