The UK Bribery Act Guidance, 2010 the need to review your business process

The UK Bribery Act Guidance, 2010 has changed the UK law on battling bribery, superseding a number of historically broken and complex misdemeanors and making an integrated and extensive law that holds heavy penalties for offenders.

The new Act makes an important change in the UK’s approach to pursuing corruption and the authorities have already made substantial investment in enforcement capacities. This change set about is emphasized by an increasing number of high-profile actions taken against corporate firms recently.

The UK Bribery Act 2011 importantly goes further than the provisions of the US Foreign Corrupt Practices Act (FCPA), particularly addressing all bribery, whether or not it implies a public official. With the Bribery Act in practice now it requires the urgent need for business organisations to review its approach in managing bribery risk and to question whether its current processes are adequate.

The Bribery Act Guidance and Training UK -, the significant Act

The Bribery Act Guidance and Training in UK came into effect from 1 July 2011 and is not mainly employment law legislation, but it makes it important for business folks to know the significances of the new law. The most significant aspect of the law for employers is the new corporate bribery offence which is ascertained in section 7 of the Act that representative of a relevant commercial organisation is at fault of an offence under this section. If a person related with a company intends to bribe another person to receive or continue business or retain an advantage in the context of business is an offence.

This signifies that where an employee bribes a business associates on behalf of their employer (whether with your knowledge or not), the employer will be held responsible under the Act. The penalties under Section 7 offence are severe: unlimited fines are likely and the employer forced out from contracting with public bodies. In addition there is likely to be substantial reputational harm as a result of a bribery investigation.

Employers can also be held guilty of the direct offences if found offering or receiving a bribe, these will invite harder offense if the prosecutors establish the link. The key way in which employers can annul liability under the Act is to show they had adequate procedures in place to deal with bribery. This isn't only a defense to the Section 7 offence, but having procedures in place may perhaps lead the prosecutor to determine not to carry on with a prosecution. This is since the prosecutors must believe whether there is any public interest in instituting proceedings against the organisation.

UK bribery Act Policy - the retailer’s concern

UK Bribery Act Policy 2010, effective from July 1st 2011 applies to all business establishments in England and Wales or for those companies conducting business in any part in the UK.

The Act intends to consolidate the UK’s Anti Corruption Act and to make it simpler for bribery to be looked into and prosecuted. Also to make a particular offences pertaining to bribing, bribing a public official and being bribed, the Act also makes afresh severe liability offence of failure to forbid bribery.

Retailers in the UK believe that in many countries bribery is regularly described as inevitable and this is now a real challenge for retailers working in those markets. The risks may perhaps be even bigger in countries such as China where it is usual to have contact with government employees, as the test of what comprises a bribe is smaller when dealing with foreign public officials.

Although retail merchant have evoked concerns about the consequence this might have upon their ability to compete with companies who do not fall under this law.

UK Bribery Act Advice - No space for corruption

The UK Bribery Act Advice, 2010 has another victim and this time it’s Macmillan Publishers. The Serious Fraud Office after inquiry found that the company made a bribery to secure a deal to print textbooks in South Sudan. On the basis of this finding the High Court ordered the company to pay £11.3m for this unlawful act.

The company Macmillan on the other hand has said that they regret this happened. The publishing company now faces a 6-year ban and will not be allowed to bid any contracts financed by the World Bank.

The UK Bribery Act is said to be the strictest of the law replacing the old Corrupt Practices Act 1889, and the Prevention of Corruption Act 1906 and Prevention of Corruption Act 1916. This and now the companies have to be careful when they do business in and out of the UK. To make it look simple, UK government has come out with guide 'Adequate Procedures' that highlights the issues which individuals and companies may feel complicated.  The section 9 of the Act contains an explanation of government policy on the functioning of the offense and failure on the part of companies to prevent corruption at home or abroad.

The UK Bribery Act Management for a transparent business transaction

The UK Bribery Act Management 2010 will have the companies in the UK to have a strict control on areas they feel where corruption or bribery can take place. The act is said to replace the old law that was in practice since World War I. After the Royal assent the law was suppose to be in practice by April, 2011 but was postponed to July 2011 and now it stands effective.

The UK Bribery Act 2010 under section 7 underlines 6 fundamental policies that will attract this act for companies that fail to comply. The new law is out to deal with organization they or their representatives are found to be associated with any act of bribery.

Companies can defend itself if they are able to show if they have implemented adequate procedures in place to curb bribery to the offense under section 7. The section 9, the UK Bribery Act 2010 was a necessity the government has come out with this guidance so companies know where to and how to implement this law. Companies not only in the UK, but those in US are said to be affected if they have a office here in the UK.

The UK Bribery Act Summary - Punishment and Penalty?

The Bribery Act Summary UK, 2010 came into force this July; introducing strict new laws on the making and receiving of bribes, as well as on the part of the companies if they fail to take adequate procedure to prevent bribery.

So let’s have a quick round about what exactly the UK Bribery Act is all about:

What is the new law?

The UK Bribery Act is one of the stringent laws worldwide, and they have charted some of the strictest punishment for the following offences:

    Section 1: Active offence of bribing another person

    Section 2: Passive offence of being bribed

    Section 6: Bribing a Foreign Public Official

    Section 7: Company offence of failing to prevent bribery.

Who will be affected?

It is applicable to everyone both individuals and companies. One important aspect of the new law is its extra-territorial effect. This is important because it not only applies to UK business but to business they operate with office in UK.

Penalties if found guilty?

    Unlimited fines;

    Sentence up to 10-years,

    Directors' disqualification, and

    Blacklisting of businesses from public sector contracts

   

Failing to curb bribery

The Bribery Act 2010 has provision to punish companies if they fail to curb bribery from taking place. Under the law a company will be held responsible if anyone acting on their behalf commits a bribery offence. Such persons can be your employees, agents, consultants, subsidiaries and joint venture partners to name a few. As said above the only defense the company can put forward is to show they has adequate procedures in place to prevent bribery offences.

The Bribery Act Policy UK, the broader rule to curb corruption

The Bribery Act Policy UK 2010 will finally come into force on 1 July 2011. The Act establishes strict corporate rule and liability offense to prevent bribery. The potential defense available for affected companies is to demonstrate that they had in place appropriate procedures to prevent bribery, by employees, agent or anybody working on their behalf.

The new strict liability offence can potentially hold any company punishable that does business in the UK if found to have indulged in any malpractices. UK companies should also understand that they are at risk while having operation worldwide and if they don’t have a system in place to check bribery by their representatives. As said the only defense for the company if found guilty is to establish that there are adequate procedures to prevent corruption in place.

It is likewise best to keep in mind that the Bribery Act is quite broad, and in several respects much broader than the US Foreign Corrupt Practices Act.