Doing business and the Bribery Act 2010

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1 Doing business and the Bribery Act 2010 Elizabeth Higgs Ethics and Integrity Manager

2 Bribery The UK History Anti-corruption Acts 1889 to 1916 Common law bribery offences UK ratified OECD Convention on the Bribery Act Anti-Terrorism Crime and Security Act 2001

3 The Bribery Act 2010 Immediately before General Election Came into force 1 July 2011 Ministry of Justice guidance: clarifies interpretation of the Act anti-bribery procedures

4 The Bribery Act 2010 Core offences of paying or receiving a bribe Specific offence of bribing a foreign public official Corporate offence of failure to prevent bribery Offences for senior officers, consenting or conniving to one of the other offences

5 The Bribery Act 2010 The Core Offences The core offences relate to the giving or receipt of inducements to improperly perform a function expected to be carried out: in good faith impartially; or where the person involved is in a position of trust

6 The Bribery Act 2010 The Core Offences Improperly perform defined re expectations of persons performing those functions in the UK even if the functions are carried out abroad UK citizens held to UK standards of behaviour, wherever located unless local written law provides for different standards

7 The Bribery Act 2010 The Core Offences Offences apply whenever: Any part of the offence takes place in the UK; or All parts of the offence take place outside the UK, but the offender is: A UK citizen, or overseas citizen, Ordinarily resident on the UK, A UK incorporated body

8 The Bribery Act 2010 The Core Offences These offences go beyond OECD convention requirements in that: There is no exemption for small facilitation payments Bribe receivers are covered as well as bribe payers (action can be taken against foreign nationals being paid in the UK) All bribes, not just bribes to obtain business or a business advantage Bribes to private persons, not just public officials

9 The Bribery Act 2010 Bribery of Foreign Public Officials Additional offence, to ensure full implementation of OECD Convention Any financial advantage paid, offered or promised: Intending to influence foreign officials, in performance of their functions; Intending to obtain or retain business or a business advantage. No improper performance is required

10 Hospitality and Promotional Expenditure Proportionate expenditure is fine - As recognised as an established and important part of doing business - Review of corporate policies to prevent use as a cover for bribe paying would be sound practice

11 Duress This defence will be available where payment is needed to protect life, limb or liberty It does not extend to protection of goods or business

12 Facilitation Payments Not allowed

13 The Bribery Act The Corporate Offence Commercial organisations commit offence if any person associated with them bribes another person intending to obtain or retain business or a business advantage for them. Offence can be committed not just by UK companies, but by any other body corporate (wherever incorporated) which carries on a business, or part of a business, in the UK Associated persons includes anyone who performs services on behalf of the organisation employees, agents

14 The Corporate Offence Adequate Procedures Defence to the corporate offence to have adequate antibribery procedures, covering all associated persons Statutory guidance on adequate procedures specifically required by Bribery Act and now in place

15 The Corporate Offence Adequate Procedures Effectively, good, ethical governance and control, over not just corporate employees, but also over agents and other contacts Also important for chartered accountants. See Code of Ethics, and ICAEW work on integrity, including Instilling Integrity in Organisations

16 International Standards and Enforcement OECD Convention on the Bribery of Foreign Public Officials UN Convention against Corruption G20 Anti-Corruption Plan

17 What does this mean in practice? Carry on doing business Remember the offence has always been there Need to be aware of UK sensitivities Think about integrity and codes of conduct

18 Instilling integrity and codes of conduct

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