UK ANTI BRIBERY ACT TRAINING2014/2015
Background
UK Anti Bribery Act 2010
•Entered into force on 1 July 2011
•Replaces out-dated UK anti-bribery and corruption legalframework
•Objectives:
•To provide a modern, single piece of legislationcriminalising bribery
•To enable effective prosecution of briberyoffences
Four separate bribery offences
•Two “active” offences of bribing and being bribed
•The offer, promise or giving of a financial or other advantage
•The bribing a foreign public official
•A “passive” offence of requesting, agreeing to receive or accepting a financialor other advantage
•“Corporate” offence of failure of a commercial organisation to prevent bribery
UK Bribery Act 2010:
Penalties
For the individual: unlimited fines and up to 10 years imprisonment .
For the organisation: unlimited fines and potential debarment fromgovernment contracts within the EU.
Consequential penalties
Reputational damage
Legal and investigation costs
Loss of management time
Loss of key business relationships
Competitor claims
UK Bribery Act 2010 (continued):
UK Bribery Act 2010 (continued):
Corporate scope of liability is extreme
Broad interpretation of “commercial organisation”
A commercial organisation will be liable for the corporate offence if an ‘associatedperson’ acting on its behalf conducts an active offence of bribery anywhere in theworld
An ‘associated person’ includes: Employees, consultants, agents, distributors,intermediaries, joint ventures or subsidiaries
Conduct ‘all or part’ of a business in the UK regardless of where incorporated orwhere the bribe was paid
Applies to non-UK organisations/individuals
Only defence = ‘adequate procedures’
That an organisation did everything it reasonably could have done to prevent briberyin the conduct of its business
UK Bribery Act 2010 (continued):
The potential defence for anorganisation against the corporateoffence of failing to prevent briberyinvolves having ‘adequateprocedures’ in place
These adequate procedures are notdefined, and in practice will becomeclearer as we see case law
Six key principles are set out as theframework within which todemonstrate adequate procedures
Six key principles:
•Principle 1: Proportionate procedures
•Principle 2: Top-level commitment
•Principle 3: Risk assessment
•Principle 4: Due diligence
•Principle 5: Communication (includingtraining)
•Principle 6: Monitoring and review
Bribery Act Compliance – Prevent, Detect, Respond
Bribery Act compliancecan be summarised in asimple Prevention,Detection, Responsemodel
Bribery Act Compliance – 10 key actions
1.Take a clear anti-bribery stance – sound ethics!
2.Assess where risks lie
3.Allocate management responsibility
4.Have clear policies
5Spread awareness and keep a record of recipients
6Conduct risk-based due-diligence (3rd parties, employees)
7Monitor and audit at-risk functions, contracts, transactions
Bribery Act Compliance – 10 key actions
8. Encourage reporting of misconduct
9. Apply consistent and robust disciplinary processes
10. Have an investigation and response plan
Stiletto Systems Limited.
