Take action on bribery now!

Article date: 23.06.11

The Bribery Act 2010 comes into force on 1 July 2011 and is an important piece of legislation that both employers and employees need to be aware of as the consequences of non compliance can result in a heavy financial penalty or in the more serious cases imprisonment.

The Act creates offences of bribing another person as well as offences relating to the acceptance of a bribe. An organisation can also be liable if it fails to have adequate procedures in place to ensure those working on behalf of an organisation do not commit an offence under this Act.

Generally bribery is defined as giving someone a financial or other advantage to encourage that person to perform their function or activity improperly or to reward that person for having already done so. An organisation can be held liable if a senior member of its management commits an act of bribery or an employee or agent pays a bribe to get business, keep business, or gain a business advantage for the organisation unless that person has acted in contravention of a clear procedure put in place by the Organisation to prohibit such actives and the person concerned acts without the organisation knowledge.

There are 6 principles which are designed to help decide if there is anything you would need to do differently:

  1. Proportionality – The actions you take need to be proportion to the risk your business faces. Large organisations and those dealing in areas such as overseas markets where bribery is known to occur will need to do more to ensure bribery does not occur.
  2. Top Level Commitment – There must be a clear commitment from those in a position of senior management to ensure that both staff and those the organisation does business with know that bribery will not be tolerated.
  3. Risk Assessment – it is necessary to think about the risk of bribery to your own organisation and in particular if you are entering a new business area.
  4. Due Diligence – Knowing who your organisation deals with can reduce the risk of bribery occurring.
  5. Communication – Clear and communicated policies to staff and agents to enhance awareness and understanding as to how your organisation conducts business.
  6. Monitoring and Review – The risks an organisation faces will change over time and therefore this should be kept under review.

The Act is not however designed to prevent the offering of hospitality provided that it is genuine hospitality or other such related expenditure provided it is proportionate and reasonable to your business.

Mark Proctor says organisations should act now to ensure they have their polices and training in place:

“This is the first time the UK has had such a piece of legislation although it is not intended to replace existing law in relation to theft, money laundering, fraud or Company and Competition Act offences and these remain crimes in their own right.

Businesses can protect themselves against the dangers of falling foul of this Act by ensuring they have an adequate policy prohibiting improper acts. They must ensure all their staff and agents are aware of the policy and the implications of non compliance not only in terms of disciplinary actions but also in terms of the criminal sanctions for the individual and the organisation.

An offence under the Bribery Act can in the Magistrates Court carry a fine of up to £20,000 or up to 12 months imprisonment or in the Crown Court the fine can be without limit and the prison term is a maximum of 10 years.” Mark is a Partner at Aldridge Brownlee Solicitors LLP and is Head of Criminal, Regulatory and Road Traffic Defence. Mark can be contacted on 01202 294411 or email mark.proctor@aldridge-brownlee.co.uk. Marks team of qualified solicitors and solicitor advocates offer a full range of defence services for the individual and to business and commercial clients.

* This is not legal advice; it is intended to provide information of general interest about current legal issues.