follow us on Twitter

The Bribery Act

bribery act

The Bribery Act has been in force since 1st July 2011 and introduces 4 new offences. The Act remains controversial in terms of its impact on the business community in the UK and abroad. It was introduced as a result of international pressure on the UK to introduce tough new laws to assist the worldwide efforts to eradicate bribery, which is seen as a threat to sustained economic growth, disproportionately affecting poorer economies.

General Bribery Offences

The Act sets out 6 different scenarios, described as ‘cases’ to define the acts of bribery in terms of both the payer and the recipient of a bribe. Essentially common sense definitions are provided in that it is an offence to offer, promise, give, request, agree to receive or accept a financial or other advantage, with the intention of inducing or rewarding the improper performance of a function or activity.

The offences have wide reaching consequences impacting on both the public and private sector. The offence of bribery is committed even if the act took place outside of the UK, if the party to the bribe has what is regarded as a close connection to the UK.

A close connection to the UK includes British citizens/Nationals/subjects, individuals ordinarily resident in the UK and corporate bodies incorporated or with a commercial presence in the UK.

Bribery of foreign public officials

The Bribery Act creates a specific offence of bribing a foreign public official, where the payer intends to influence the official, to gain or retain business without a legal justification.

Prosecution against Senior Officers

As well as prosecutions against organisations and individuals involved in a bribe, the Act facilitates prosecutions against Senior Officers of companies, if it is established that a bribe took place with the consent or connivance of a Senior Officer of the entity. A Senior Officer is described as a director, manager, secretary or other similar officer.

The offences of committing bribery for individuals carry a maximum sentence of 10 years imprisonment and for companies an unlimited fine. For individuals and companies they will also face inevitable confiscation proceedings, to deprive those convicted of the proceeds of their crime.

Failure of commercial organisations to prevent bribery

Perhaps the most controversial aspect of the Bribery Act is the offence that is committed by an organisation when a person associated with it bribes another, intending to obtain or retain business or a business advantage for that organisation, unless the organisation can prove that they had adequate procedures in place designed to prevent bribery.

The offence bites regardless of where in the world the bribe took place, as long as the organisation has a close connection to the UK.

This offence presents many challenges to the business community, not least of which in relation to the thorny issues of corporate hospitality and facilitation payments.

Corporate Hospitality

The government has issued guidance in an attempt to assist organisations with the requirements of the Bribery Act. The guidance sets out that whilst it is not the intention of the government to criminalise reasonable and proportionate corporate hospitality, there is a need for it to remain within appropriate limits not to fall within the ambit of a bribe.

Facilitation Payments

Facilitation payments are often referred to as ‘speed’ or ‘grease’ payments. They are usually small payments to officials to facilitate routine government action to expedite their performance of duties such as issuing permits, allowing unloading of cargo etc. These payments constitute bribes and therefore should not be paid. Companies that pay them risk criminal prosecution, with the ensuing financial penalties.

The government in their guidance recognise that organisations can sometimes find themselves in a difficult scenario whereby payments are demanded by officials, the non-payment of which can have serious financial and other implications. The guidance therefore suggests that prosecutorial discretion should be exercised when deciding if it is in the public interest to prosecute in each specific set of circumstances.

What steps should organisations take to protect themselves?

When preparing internal procedures the government’s guidance offers 6 principles that should be applied:

  1. Proportionate procedures;
  2. Top level commitment;
  3. Risk assessment;
  4. Due diligence;
  5. Communication (including training);
  6. Monitoring and Review.

How can we help you?

We can assist you in any of the following ways:

Contact Us

For more information, or further advice in relation to the Bribery Act, please contact Marie Dancer on 0115 986 3636 or email help@richardnelsonllp.co.uk.