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The new UK Bribery Act 2010 and its “actual” impact<br />Neill Blundell<br />Eversheds LLP<br />5th July 2011 – CFO Event,...
Overview<br /><ul><li>The new law and its impact on you
Adequate Procedures defence</li></ul>	– what is it?<br /><ul><li>Practical implications
Questions</li></li></ul><li>The Bribery Act – timetable update<br /><ul><li>Royal Assent on 8 April 2010
Guidance published on 30 March 2011
It is now law (1 July 2011)
Act is not retrospective</li></li></ul><li>4 Key Offences<br /><ul><li>Active bribery (includes facilitation payments and ...
Passive bribery
Bribing a foreign public official
Failing to prevent bribery</li></li></ul><li>Extra territorial application of Act<br />Individuals <br /><ul><li>If “close...
British citizen/ordinarily resident in the UK</li></ul>Corporations<br /><ul><li>Incorporated in the UK; or
Incorporated outside UK but carries on business in UK</li></ul>Senior Officers<br /><ul><li>Consent or connivance</li></li...
Associated person?<br />Third parties used by you:<br /><ul><li>Agents
Contractors
Suppliers and supply chains</li></ul>Other third parties:<br /><ul><li>Joint Ventures
Contract
Separate Legal Entity
Subsidiaries – inter company services?</li></li></ul><li>The “adequate procedures” defence and the Guidance<br /><ul><li>U...
But leave it up to the organisation to decide what is appropriate
Burden on a company to prove it had adequate procedures
Robust and effective anti-bribery systems and controls
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The new UK Bribery Act 2010 and its “actual” impact

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The new UK Bribery Act 2010 and its “actual” impact by Neill Blundell Eversheds LLP

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Transcript of "The new UK Bribery Act 2010 and its “actual” impact "

  1. 1. The new UK Bribery Act 2010 and its “actual” impact<br />Neill Blundell<br />Eversheds LLP<br />5th July 2011 – CFO Event, Celtic Manor<br />
  2. 2. Overview<br /><ul><li>The new law and its impact on you
  3. 3. Adequate Procedures defence</li></ul> – what is it?<br /><ul><li>Practical implications
  4. 4. Questions</li></li></ul><li>The Bribery Act – timetable update<br /><ul><li>Royal Assent on 8 April 2010
  5. 5. Guidance published on 30 March 2011
  6. 6. It is now law (1 July 2011)
  7. 7. Act is not retrospective</li></li></ul><li>4 Key Offences<br /><ul><li>Active bribery (includes facilitation payments and commercial to commercial bribery)
  8. 8. Passive bribery
  9. 9. Bribing a foreign public official
  10. 10. Failing to prevent bribery</li></li></ul><li>Extra territorial application of Act<br />Individuals <br /><ul><li>If “closely connected” to the UK; or
  11. 11. British citizen/ordinarily resident in the UK</li></ul>Corporations<br /><ul><li>Incorporated in the UK; or
  12. 12. Incorporated outside UK but carries on business in UK</li></ul>Senior Officers<br /><ul><li>Consent or connivance</li></li></ul><li>Failure to prevent bribery<br />A company will commit an offence of failing to prevent bribery where an associated person carries out active bribery or bribes a Foreign Public Official<br />Unless it can show it had adequate procedures<br />“The objective of the Act is not to bring the full force of the criminal law to bear upon well run commercial organisations that experience an isolated incident of bribery on their behalf”<br />(MoJ Guidance)<br />
  13. 13. Associated person?<br />Third parties used by you:<br /><ul><li>Agents
  14. 14. Contractors
  15. 15. Suppliers and supply chains</li></ul>Other third parties:<br /><ul><li>Joint Ventures
  16. 16. Contract
  17. 17. Separate Legal Entity
  18. 18. Subsidiaries – inter company services?</li></li></ul><li>The “adequate procedures” defence and the Guidance<br /><ul><li>UK Government suggested procedures and principles
  19. 19. But leave it up to the organisation to decide what is appropriate
  20. 20. Burden on a company to prove it had adequate procedures
  21. 21. Robust and effective anti-bribery systems and controls
  22. 22. Proportionate to the risks</li></li></ul><li>The Six Principles<br />Proportionate Procedures<br />Top Level Commitment<br />Risk Assessment<br />Due Diligence<br />Communication (including training)<br />Monitoring and Review<br />
  23. 23. 1. Proportionate Procedures<br /><ul><li>Proportionate to bribery risks a company faces, and to the nature, scale and complexity of its activities
  24. 24. Clear, practical, accessible, effectively implemented and enforced
  25. 25. Can be standalone or not</li></ul>- Tender process<br />- recruitment<br />
  26. 26. 1. Proportionate Procedures<br /><ul><li>High risk example: use of agent in foreign country to negotiate with public officials
  27. 27. Existing associated persons
  28. 28. Whistle blowing procedures</li></li></ul><li>2. Top Level Commitment<br /><ul><li>Culture that bribery is never acceptable
  29. 29. Well publicised statement of consequences for employees and business partners
  30. 30. Board level responsibility</li></li></ul><li>2. Top Level Commitment<br /><ul><li>Make a senior manager actively responsible for the programme
  31. 31. Repetition
  32. 32. Protection and procedures for whistle blowing
  33. 33. Internal and external</li></li></ul><li>3. Risk Assessment<br /><ul><li>Periodic, well informed and documented
  34. 34. Proportionate to organisation’s size, nature and location of its business
  35. 35. Can this be a purely desktop exercise?</li></li></ul><li>3. Risk Assessment<br /><ul><li>Internal Risks : remuneration structure, hospitality policy, financial controls
  36. 36. External Risks :</li></ul> - Country<br /> - Sector<br /> - Type of transaction<br /> - Business opportunity<br /> - Business partner eg third parties<br />
  37. 37. 4. Due Diligence<br /><ul><li>Proportionate to the identified risk
  38. 38. Know your business relationships eg third parties used by a company
  39. 39. Check : </li></ul> - the local risks and relevant laws<br /> - reputations<br /> - partner’s own internal measures<br />
  40. 40. 4. Due Diligence<br /><ul><li>Local law/convention requiring use of intermediaries
  41. 41. Mergers and acquisitions
  42. 42. Recruitment</li></li></ul><li>5. Communication (including training)<br /><ul><li>Policies and procedures embedded and understood
  43. 43. “Tone from the Top”
  44. 44. Cover all levels from board of directors down
  45. 45. Cover “associated persons”
  46. 46. Clear procedure on the response to incidents of bribery
  47. 47. “Speak up” procedures</li></li></ul><li>6. Monitoring and Review<br /><ul><li>Identify issues as they arise
  48. 48. Improve where necessary
  49. 49. Report results of review to the Board
  50. 50. Possible external verification of effectiveness</li></li></ul><li>Difficult Issues<br /><ul><li>Consider self-reporting to the SFO to obtain a negotiated civil settlement
  51. 51. retain control over investigation and its outcome
  52. 52. management of issues & publicity
  53. 53. mandatory EU disbarment provisions not applicable
  54. 54. POCA requirements may make this inevitable</li></ul>Self Reporting to SFO<br />
  55. 55. Questions?<br />
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