Bribery Compliance

What is Bribery Compliance?

Bribery can be defined as any individual or organisation providing or accepting a bribe to gain preferential treatment for their business activities. Bribery compliance legislation has been introduced to govern the misuse of payments to gain a business advantage.

Why is Bribery Compliance important?

All forms of bribery are wrong but it is widely recognised that bribery of officials is particularly damaging as it may distort fair competition, divert funds away from public services, weakens the rule of law and generally undermines national security.

What is the Bribery Act 2010 and why is it important?

This is UK legislation which encompasses criminal provisions related to bribery. It encompasses not only those offering, promising or giving a bribe (active bribery) but also those requesting, agreeing to receive or accepting a bribe (passive bribery). Third parties involved in bribery on behalf of another entity are also covered by the Act.

Examples of Bribery

• The giving or offering a senior public official hospitality in return for a favourable decision in relation to a contract
• A UK company based in a foreign country pays “inspection fees” to facilitate speedier clearance of goods through customs
• A UK company donates a charitable donation to the favoured charity of a government official who has potential to make favourable decisions for the company

Who does the UK Bribery Act apply to?

It applies to both UK private and public organisations.

What are the penalties for breaching the UK Bribery Act?

• Up to 10 years imprisonment
• Unlimited fines
• Ineligibility to bid for public contracts
• Confiscation orders
• Potential disqualification of company directors from leadership roles for up to 15 years

How Franklins Solicitors support organisations with Bribery Compliance

Franklins can support with an audit of processes and procedures, provide training and education to employees and management, develop and implement anti-bribery policies and random monitoring of business practices.

The BA was introduced to criminalise the giving and receiving of bribes. For these purposes:

• Bribery is not limited to cash payments, it can for instance include favourable treatment or material gifts.
• The BA has created four main offences:
  1. The giving, promising or offering of a bribe.
  2. Agreeing to receive or accept a bribe.
  3. Bribery of a foreign public official.
  4. Failing to prevent bribery.
• Organisation can defend themselves if they can show that they have adequate procedures in place to prevent bribery.

This is not an area that any organisation should ignore. In a business context, the types of actions that could lead to prosecution under the BA include:

• Disproportionate levels of corporate entertainment.
• Payments or gifts to secure contracts.
• Gifts or payments to clients that could be deemed disproportionate.
• An offence of bribery conducted by an employee of the business.

Our services include advising organisations in navigating their way through potentially problematic areas such as:

• Corporate hospitality.
• Facilitation payments.
• The use of commercial agents and other intermediaries.
• Dealings with Government officials or their family members.
• Putting in place bespoke Compliance Policies tailored to an organisation and any specific risks it might face.
• The need for due diligence in relation to current and future projects.

We advise organisations of all sizes on bribery and corruption issues, from start-ups to large entities across a diverse range of industry sectors.

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