Chapter 22 - Topic 4 : Bribery

Penalties for corporate offences

Maximum penalty that may be imposed on a guilty organisation is an unlimited fine On the other hand, there is also loss in terms of tarnished reputation,

Due diligence

Organisations should perform due diligence procedures in respect of those who perform services for the organisation or on its behalf, to offset the risk of bribery

Definition of 'Improper' performance

Performance which does not meet the standard that a reasonable person in the UK would expect.

Monitor Review

Policies and procedures with regard to anti-bribery should be regularly monitored and reviewed. Amendments and improvements must be made as deemed.

Proportionate procedures

Procedures designed in order to prevent the occurrence of bribery, Complexity of the procedure depends on the size of the firm.

Bribing a foreign public official

Same as bribing an individual, with the intention of influencing the latter in their official capacity. A public official is any individual who holds a legislative, administrative or judicial position or who is an agent of a public organisation.

Top-level commitment

Senior management should be committed to preventing bribery and should foster a culture in the organisation where bribery is perceived as being unacceptable.

Defences for individual offences

The defence for an individual charged with a bribery offence if they can prove that their conduct was necessary for the proper exercise of any function of an intelligence service or the proper exercise of any function of the armed forces when engaged on active service.

Defences for Corporate failure to prevent bribery

The offence of corporate failure to prevent bribery is committed by an organisation that fails to prevent a bribery offence being committed by a person who represents the organisation. Under the Act, an organisation includes both companies and partnerships based in the UK or doing business in UK.

Risk assessment

There should have regular assessment from both inside and outside the organisation the nature depending to the extent of their exposure to bribery. Some industries and some overseas markets are viewed as, being more susceptible to bribery and hence risk assessments in these areas should be even more strict.

Offence Created under the Bribery Act 2010

(i) Bribing another person (ii) Being bribed (iii) Bribing a foreign public official (iv) Relevant Function or Activity

Penalties for individual offences

10 years 's of imprisonment and/ or unlimited fine

Bribing another person

A person offers, promises or gives financial or other advantages to another person with the intention of inducing that person to perform improperly a relevant activity, or to reward them for such poor behavior. It does not matter whether or not the person being bribed is the one to carry out the task or whether the offer is made directly or via a third party. This offence can also be committed where acceptance of an advantage itself constitutes improper performance of an activity.

Being bribed

A person requests or accepts a financial or other advantage,as a reward for improper performance of a relevant activity, or intending that improper behavior should result. It does not matter whether the advantage is received directly or through a third party. The offence also applies if a person receives a benefit on behalf of another person.

Defence for corporate offences

An organisation has a defence to this offence if it can prove that it had in place 'adequate procedures' designed to prevent persons associated with it from committing bribery.

Communication

Anti-bribery policies and procedures should be rooted within the culture of organisation and communicated with both internal and external staff.

Definition of Bribery

Bribery is a serious offence which often relates to the offering and receiving of gifts or rewards in monetary or non monetary terms. Bribery Act 2010 - came into effect in July 2011

Relevant Function or Activity

By virtue of the Act, a relevant function or activity includes any function of a public nature or any activity connected with business or carried out in the course of employment. It refers to individuals who perform that duty from a position of trust and is expected to perform it in good faith. It is irrelevant whether the activity has a connection with the UK .

Adequate Procedures - defined as per the Secretary of State's non-prescriptive guidance :-

Definition of adequate procedures is based the following 6 principles: (i) Proportionate procedures (ii) Top-level commitment (iii) Risk assessment (iv) Due diligence (v) Communication (vi) Monitor Review