The Bribery Act 2010 came into force on 1 July 2011. The Act repeals previous law creating new criminal offences for companies and individuals.
Businesses should review and update company policies and where necessary draft their own Anti-Bribery Policy.
The key offences
- Accepting a bribe
- Bribing another person (whether directly or indirectly)
- Bribing a foreign public official
- Commercial organisations failing to prevent bribe
What do I need to do now?
- Carry out a risk assessment
- Draft or review a code of Business Conduct
- Produce a detailed anti-bribery policy to include all relevant areas that affect the organisation which should be included in staff handbooks and employment contracts. The policy will include disciplinary action for breaches and also whistleblowing procedures
- Provide training and guidance to directors, managers and staff
- Introduce internal monitoring/audit systems, provide guidance on gifts, hospitality and promotional expenditure to relevant employees
- Ensure your policy includes third parties that you deal with
- Review commercial contracts to include appropriate standard clauses prohibiting bribery or corruption
Penalties
The penalties can be severe with up to 12 months imprisonment or a fine of up to £5,000 as a summary offence and up to 10 years imprisonment and an unlimited fine on indictment. If a commercial organisation fails to prevent bribery, the fine is unlimited.
Full details of the Bribery Act 2010 can be found here, which also provides a 9-page quick start guide.
This summary is intended for general guidance only and does not constitute professional advice. Specific advice should be taken before acting on any topics covered.
July 28th, 2011
