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BRIBERY ACT 2010

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FocusingontheBriberyAct2010,thisarticleconsidersthelikelykeyroleaccountantswillplay
inreviewingorganisationalrisksrelatingtobribery,andimplementingadequateproceduresand
controls

TheBriberyAct2010waspassedinApril2010andwillbeexaminablefromJune2012.TheActrepeals
oldUKbriberylawsandisaimedatdealingwiththeriskofbriberyandcorruption,whichundermines
corporategovernance,theruleoflawanddamageseconomicdevelopment.

BRIBERYOFFENCES
TherearefouroffencesofbriberyundertheAct:

S1Offencesofbribinganotherperson
Itisanoffencetoofferafinancialorotheradvantagetoanotherpersontoperformimproperlyarelevant
functionoractivity,ortorewardapersonfortheimproperperformanceofsuchafunctionoractivity.

S2Offencesrelatingtobeingbribed
Itisanoffencewhereapersonreceivesoracceptsafinancialorotheradvantagetoperformarelevant
functionoractivityimproperly.

Relevantfunctionoractivityincludesanyfunctionofapublicnature,anyactivityconnectedwitha
business,anyactivityperformedinthecourseofapersonsemployment,andanyactivityperformedby
oronbehalfofabodyofpersons.TheactivitymaybeperformedinacountryoutsidetheUK.

S6Briberyofforeignpublicofficials
Itisanoffencedirectly,orthoughathirdparty,toofferafinancialorotheradvantagetoaforeignpublic
official(FPO)toinfluencethemintheircapacityasaFPO,andtoobtainrelevantbusiness,oran
advantageintheconductofbusiness.

FPOmeansanindividualwhoholdsalegislative,administrativeorjudicialpositionofanykindoutside
theUK,orwhoexercisesapublicfunctionoutsidetheUK,orisanofficialoragentofapublic
internationalorganisation.

S7Failureofcommercialorganisationstopreventbribery
Itisanoffenceforacommercialorganisation(aUKcompanyorpartnership)ifapersonassociatedwithit
bribesanotherpersonintendingtoobtainorretainbusiness,ortoobtainorretainanadvantageinthe
conductofthebusinessfortheorganisation.ThiscouldtakeplaceoutsidetheUK.S.8definesassociated
personsassomeonewhoperformsservicesfororonbehalfofthecommercialorganisation,and,
therefore,couldbeanemployee,agentorsubsidiary.

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Anorganisationdoes,however,haveadefenceunders7ifitcanproveithadinplaceadequate
proceduresdesignedtopreventbribery.S9requirestheSecretaryofStatetopublishguidanceabout
adequateprocedures.Theguidance,whichwaspublishedinMarch2011,statesthatwhatcountsas
adequatewilldependonthebriberyrisksfacedbyanorganisation,andthenature,sizeandcomplexityof
thebusiness.Further,ifthereisnoriskofbribery,thenanorganisationwillnotrequireanyproceduresto
preventbribery.Theguidanceisnotprescriptiveandisbasedaroundsixguidingprinciples.

THESIXPRINCIPLES
1.Proportionateprocedures
Theprocedurestakenbyanorganisationshouldbeproportionatetotherisksitfacesandthenature,
scaleandcomplexityofitsactivities.Asmallorganisationwouldrequiredifferentprocedurestoalarge
multinationalorganisation.

2.Toplevelcommitment
Thetoplevelmanagementshouldbecommittedtopreventbriberyandfosteraculturewithinthe
organisationinwhichbriberyisunacceptable.

3.Riskassessment
Organisationsshouldassessthenatureandextentofitsexposuretorisksofbribery,includingpotential
externalandinternalrisksofbribery.

Forexample,someindustriesareconsideredhigherriskthanothers,suchastheextractiveindustries
someoverseasmarketsmaybehigherriskwherethereisanabsenceofantibriberylegislation.

4.Duediligence
Theorganisationshouldapplyduediligenceproceduresinrespectofpersonswhoperformservicesfor
oronbehalfoftheorganisationinordertomitigatebriberyrisks.

5.Communication
Theorganisationshouldensureitsbriberypreventionpoliciesandproceduresareembeddedand
understoodthroughouttheorganisationthroughinternalandexternalcommunication,includingtraining,
proportionatetotherisksitfaces.Communicationandtrainingenhancesawarenessandhelpstodeter
bribery.

6.Monitoringandreview
Theorganisationshouldmonitorandreviewproceduresdesignedtopreventbriberyandmake
improvementswherenecessary.Therisksanorganisationfacesmaychangeand,therefore,an
organisationshouldevaluatetheeffectivenessofitsantibriberyproceduresandadaptwherenecessary.

Thequestionofwhetheranorganisationhadadequateproceduresinplacetopreventbriberyisamatter
thatwillbedeterminedbythecourtsbytakingintoaccountthecircumstancesofthecase.Theonuswill,
however,beontheorganisationtoproveithadadequateproceduresinplace.

Itshouldbenotedthatgenuinehospitalitythatisreasonableandproportionateisnotprohibitedbythe
Act.

PENALTIES
Anindividualfoundguiltyisliabletoimprisonmentforamaximumof10years.(Thishasbeenincreased
fromsevenyears.)

Anorganisationfoundguiltyisliabletoanunlimitedfine.Theobviousfurtherdamagetotheorganisation
isreputationaldamageandtheconsequencesofthis,aswellaspotentialcivilclaimsagainstdirectorsfor
thefailuretomaintainadequateprocedures.

CONCLUSION
TheBriberyAct2010aimstocombatbriberyandencouragefreeandfaircompetition.Itreplaces
outdatedandcriticisedlawsonbribery.Alloftheoffenceshaveextraterritorialapplication.Ofmost
significanceistheintroductionofanewoffenceagainstcommercialorganisationsthatfailtopreventa
bribebeingpaidontheirbehalf,subjecttothestatutorydefence.

Organisationswillberesponsibleforputtingadequateproceduresinplacetopreventbriberythecore
principlebehindthesebeingproportionality.Itislikelyaccountantswillbekeytotheorganisation
reviewingrisksrelatingtobriberyandimplementingadequateproceduresandcontrols.

SallyMcQueenisACCAexaminationscontentmanager

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Lastupdated:17Feb2016

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