Bribery Act 2010
Key Offences under the UK Bribery Act 2010 are:
Section 1 – Offences of bribing another person
This offence relates to a person offers, promises or gives a financial or other advantage to another person, and intends the advantage to either:
- induce a person to perform improperly a relevant function or activity, or
- to reward a person for the improper performance of such a function or activity.
Section 2 – Offences relating to being bribed
This offence relates to a person who requests, or agrees to receive or accepts a financial or other advantage intending that, in consequence, a relevant function or activity should be performed improperly.
Section 6 – Bribery of Foreign Public Officials
A person who bribes a foreign public official is guilty of an offence if they directly or through a third party, offers, promises or gives any financial or other advantage with the intention of influencing a foreign public official in order to obtain or retain business, or an advantage in the conduct of business.
Section 7 – Failure of commercial organisations to prevent bribery
A relevant commercial organisation is guilty of an offence under this section if a person associated with the organisation bribes another person intending to obtain or retain business for the organisation, or to obtain or retain an advantage in the conduct of business for the organisation. But it is a defence for the organisation to prove that it had in place adequate procedures designed to prevent persons associated with it from undertaking such conduct.
The Ministry of Justice has provided guidance on 6 key elements of an anti-bribery program that can ensure that firms have adequate procedures to prevent Bribery. The 6 key elements with relevant links to our guide and resources are:
- Proportionate Procedures
- Top Level Commitment
- Risk Assessment
- Due Diligence
- Communication (Including Training)
- Monitoring and Review
The following are areas of the business or transactions which are particularly prone to bribery and corruption risks:
- Purchases and Sales including purchase and sale of assets e.g. land, property, Intellectual Property;
- Procurement of long term contracts;
- Transactions in high risk jurisdictions;
- Transactions involving intermediaries; consultants; brokers particularly where delivery is direct to the purchaser but payment is via the intermediary/consultant or where the consultant or broker has had no real purpose to the deal;
- Sale or Purchase of an asset at an apparent under or over value;
- Transactions where approval from an overseas government regulator or official was required.
There are also analytic techniques which can be applied to transactions to identify suspicious transactions or red flags. These can be applied on a proactive basis by relevant parts of the business or on a sample basis through internal audit.