The Government has at last confirmed that the Bribery Act 2010 will commence on 1st July 2011.
The start date was delayed to await the publication of guidance by the Ministry of Justice. The guidance was published and can be found on the MoJ website at www.justice.gov.uk/guidance/bribery.htm.
The Act is set to modernise old and outdated anti-corruption laws.
Of particular significance, is the new corporate offence of failing to prevent bribery by persons working on behalf of a business. As well as employees, this may extend to agents both here and overseas. This will cause some concern for those organisations seeking to develop their business in expanding economies, such as those in the Far East.
The corporate offence carries potential penalties of unlimited fines and possible permanent exclusion from public contract works for any convicted organisation. Companies will also be concerned at the damage to their reputations, if they do find themselves appearing in court.
However, companies will have a defence if they can prove they had in place ‘adequate procedures’ to prevent bribery taking place. This will include suitable policies and procedures to deter employees or agents from paying bribes to improperly influence others, such as customers or potential clients.
Companies are advised within the guidance to undertake due diligence when dealing with other businesses to ensure they are not exposed to the corporate offence by association. This will include requesting a copy of the anti-bribery policies of those organisations with which they have a business relationship or are looking to enter into such agreements. It is expected that a request for such policies will become the norm in tendering processes, particularly those in the public sector.
The Act also creates personal criminal liability for the senior officers of a company, such as the directors or senior management. They could face up to 10 years in prison if their business becomes involved in bribery with their consent or even if they have turned a blind eye to it.
Assess your risks in terms of corruption and put systems in place to ensure compliance. Any organisation that has not yet started this process should now be doing so.