After several delays, the Bribery Act has now become law, and the Government has published guidance on how it will work
The Bribery Act prohibits the paying and receiving of bribes, and in private corporations, failing to prevent bribery. Originally scheduled for enforcement last October, then postponed until April, the Act finally came into force on 1 July following publication of Government guidance three months previously.
Failing to prevent bribery is an offence under the Act, punishable by unlimited fines for companies and the possibility of a 10-year prison sentence for directors. The only defence is having “adequate procedures” in place to prevent bribery.
The quick start guidance says these procedures should be proportionate to the risk and that there is no need for organisations to have extensive written documentation or policies. It says employers’ “existing controls over company expenditure, accounting and commercial or agent contracts” may already be adequate, although larger organisations need to be able to demonstrate that line managers are “fully committed to the objective of preventing bribery”. Small businesses may only need to remind key staff verbally about anti-bribery policies.
Organisations are not required to comply with the anti-bribery procedures of their business partners in order to rely on the “adequate procedures” defence.
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The Bribery Act
Feature from the April 2011 edition of PM.
Bribery Act delayed for second time
Ministry of Justice misses deadline for issuing guidance
Implementation of Bribery Act to be reviewed
Act will be re-examined as part of efforts to ease burden on business
Bribery Act to be delayed until April 2011
Ken Clarke to launch further consultation after employers voice concerns
Anti-bribery law puts onus on firms
Law will come into force in October 2010
Employment law advice
Bribery Act a ‘thank you’ – or an illegal incentive?
Legislation coming into force next April means organisations face strict liability for any bribery within their operations
New Bribery laws have major implications for employers
Organisations that fail to prevent bribery occuring could be liable under the new 'bribery bill'
Useful links
Bribery Act 2010
Ministry of Justice
CIPD