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Ministry of Justice Requires Companies to Have Anti-Bribery Procedures in Place
According to the Ministry of Justice, The Bribery Act "reforms the criminal law to provide a new, modern and comprehensive scheme of bribery offences that will enable courts and prosecutors to respond more effectively to bribery at home and abroad".
Under the Act, which received Royal Assent on 8th April 2010, a company can be liable for the behaviour of employees, if it can be shown that the company had insufficient measures in place to prevent bribery.
As Matthew Claughton notes, "although the MoJ has stated that guidance on adequate measures will be published this is yet to happen. Moreover the adequacy of measures required will vary from one organisation to another.
"However, the GC100 group of senior legal officers from over 85 FTSE 100 Companies has issued a draft paper which the MoJ has suggested may form the basis of Government guidance. It covers the following areas:
1. Board Responsibility for anti corruption programme
2. Appointment of Compliance Officer
3. An ethical code of conduct
4. Risk management procedures
5. Employment procedures (vetting,contractual obligations, disciplinary provisions)
6. Gifts/hospitality policy
7. Training
8. Decision making process
9. Financial controls (eg via internal audit)
10. Supply chain management
11. Reporting and investigation procedures."
Mr Claughton concludes with the warning that "[with] maximum sentences of 10 years imprisonment for individuals and unlimited fines combined with disbarment from EU tenders for organisations involved in bribery this is legislation that cannot be ignored."
(Please see: "United Kingdom: Bribery Act 2010 -The Need for Compliance," by Matthew Claughton, 27 May 2010)