Inspirations EventCompliance and Croissants: The Bribery Act 2010 and what it really means for your organisation<br />REDT...
Agenda<br />08:15-08:45	Registration, tea, coffee and pastries<br />08:45-09:00	Welcome and introductionTracy Capaldi-Drew...
REDTRAY’s services<br />REDTRAY designs, delivers and deploys learning solutions for enterprise organisations.<br />We’re ...
Bespoke and ‘off the shelf’ e-learning
Face to face classroom training
Virtual CloudRooms
Learning consultancy
Business transformation services</li></li></ul><li>If you need further information <br />Your REDTRAY team today:<br />   ...
A legal perspective on the bribery act 2010<br />Jonathan P. Armstrong, Partner<br />Duane Morris LLP<br />
Bribery & Corruption – To the UK & BeyondJonathan Armstrong Compliance & Croissants<br />January 2011<br />
New UK Legislation<br /><ul><li>“Toughest enforcement standard in the world“
Enacted 8th April 2010
Applies to public & private officials
Replaces legislation stretching back to 1889
Draft guidance consultation closed 5th November
In force 1st April 2011
Important new offence of failure to prevent bribery</li></li></ul><li>Who’s Who?<br />Ministry of Justice (MoJ)<br />Serio...
New UK Legislation<br /><ul><li>Applies to public & private officials
Increases penalties - 10 years jail and/or unlimited fines for individuals, companies & partnerships
Offences
Offering, promising or giving an advantage
Requesting, agreeing to receive or accepting an advantage
Bribing a foreign public official
Failure to prevent bribery</li></li></ul><li>Extra territorial reach<br />The offences of giving and receiving bribes and ...
AON<br />UK FSA fine of £5.25m (after 30% discount)<br />Failure to establish and maintain systems<br />Countries include:...
Countries involved in recent cases<br />Nigeria<br />Philippines<br />Romania<br />Russia<br />Saudi Arabia<br />Serbia<br...
  Egypt
  Gabon
  Haiti
  Hungary
  India
  Indonesia
Iraq
Israel
Kazakhstan
Korea
Latvia
Malaysia
Mexico</li></li></ul><li>Geography<br />www.transparency.org<br />www.tinyurl.com/jpa009<br />
Hospitality & promotional expenditure<br />“Hospitality and promotional expenditure can be employed improperly and illegal...
Issues with FCPA policies<br /><ul><li>‘Foreign Public Official’
Hospitality
Bans facilitation payments
De minimis levels
Adequate procedures
Policies must be reviewed
“clear, practical, accessible and enforceable”
Legal issues with helplines</li></li></ul><li>Interaction with US<br />“What happens in Las Vegas”<br />Dodd-Frank bounty ...
Practical issues<br />Stretch of in-house resources<br />Death of privilege<br />Consent to collect data<br />Valid employ...
Practical Steps<br />Education, education, education<br />Culture<br />Zero tolerance of bribes - whether public officials...
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REDTRAY Inspirations Event: Compliance and croissants the bribery act 2010 final

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These presentations were delivered at the Inspirations event on 18 January 2011, focused on the new Bribery Act and the implications for UK organisations. Hosted by REDTRAY and Grant Thornton, we were joined by expert guest speakers from both Grant Thornton and Duane Morris.

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  • Contrast 10 years jail with 5 under FCPAFailure to prevent bribery (includes non-UK businesses operating in the UK cf AON FSA fine) – note now strict liability not negligence as earlier draft
  • The draft guidance makes it clear that hospitality is fully within the ambit of the new law saying “Hospitality and promotional expenditure can be employed improperly and illegally as a bribe” although it does give some comfort for those hosting “reasonable and proportionate hospitality…to improve the image of a commercial organisation, better to present products and services, or establish cordial relations”.
  • REDTRAY Inspirations Event: Compliance and croissants the bribery act 2010 final

    1. 1. Inspirations EventCompliance and Croissants: The Bribery Act 2010 and what it really means for your organisation<br />REDTRAY and Grant Thornton<br />18 January 2010<br />
    2. 2. Agenda<br />08:15-08:45 Registration, tea, coffee and pastries<br />08:45-09:00 Welcome and introductionTracy Capaldi-Drewett, Director, REDTRAY Ltd<br />09.00-09:30 A legal perspective on the Bribery Act 2010 Jonathan P. Armstrong, Partner, Duane Morris LLP<br />09:30-10:00 The Bribery Act 2010 and ensuring adequate proceduresBen Luddington, Grant Thornton UK LLP<br />10:00 -10:15 Harnessing learning technology to ensure compliance<br />Tracy Capaldi-Drewett, Director, REDTRAY<br />10:15-10:30 Q&A sessionChaired by Tracy Capaldi-Drewett, Director, REDTRAY<br />10:30-11:00 Networking and a chance to try ALTO <br />11:00 Close<br />
    3. 3. REDTRAY’s services<br />REDTRAY designs, delivers and deploys learning solutions for enterprise organisations.<br />We’re an award winning blended e-learning solutions provider:<br /><ul><li>ALTO – our integrated Learning Management System (LMS)
    4. 4. Bespoke and ‘off the shelf’ e-learning
    5. 5. Face to face classroom training
    6. 6. Virtual CloudRooms
    7. 7. Learning consultancy
    8. 8. Business transformation services</li></li></ul><li>If you need further information <br />Your REDTRAY team today:<br /> Phil Candice <br /> Simon Nick <br />
    9. 9. A legal perspective on the bribery act 2010<br />Jonathan P. Armstrong, Partner<br />Duane Morris LLP<br />
    10. 10. Bribery & Corruption – To the UK & BeyondJonathan Armstrong Compliance & Croissants<br />January 2011<br />
    11. 11. New UK Legislation<br /><ul><li>“Toughest enforcement standard in the world“
    12. 12. Enacted 8th April 2010
    13. 13. Applies to public & private officials
    14. 14. Replaces legislation stretching back to 1889
    15. 15. Draft guidance consultation closed 5th November
    16. 16. In force 1st April 2011
    17. 17. Important new offence of failure to prevent bribery</li></li></ul><li>Who’s Who?<br />Ministry of Justice (MoJ)<br />Serious Fraud Office (SFO) <br />Economic Crime Agency (ECA) <br />
    18. 18. New UK Legislation<br /><ul><li>Applies to public & private officials
    19. 19. Increases penalties - 10 years jail and/or unlimited fines for individuals, companies & partnerships
    20. 20. Offences
    21. 21. Offering, promising or giving an advantage
    22. 22. Requesting, agreeing to receive or accepting an advantage
    23. 23. Bribing a foreign public official
    24. 24. Failure to prevent bribery</li></li></ul><li>Extra territorial reach<br />The offences of giving and receiving bribes and bribing foreign public officials apply to<br />UK entities wherever the act occurs (even if US owned)<br />UK citizens and individuals ordinarily resident in the UK regardless of where the relevant act occurs<br />non-UK nationals & entities if an act or omission forming part of the offence takes place within the UK<br />“relevant function/activity” does not need to have a connection with the UK<br />
    25. 25. AON<br />UK FSA fine of £5.25m (after 30% discount)<br />Failure to establish and maintain systems<br />Countries include:<br />Bahrain<br />Bangladesh<br />Bulgaria<br />Burma<br />Indonesia<br />Vietnam<br />
    26. 26. Countries involved in recent cases<br />Nigeria<br />Philippines<br />Romania<br />Russia<br />Saudi Arabia<br />Serbia<br />Spain<br />Thailand<br />UAE<br />Uganda<br />United Kingdom<br />Venezuela<br />Vietnam<br />Argentina<br />Azerbaijan<br />Bahrain<br />Bangladesh<br />Bolivia<br />Bosnia<br />Brazil<br />Bulgaria<br />Burma<br />China<br />Congo<br />Costa Rica<br />Croatia<br />Ecuador<br /><ul><li> Equatorial Guinea
    27. 27. Egypt
    28. 28. Gabon
    29. 29. Haiti
    30. 30. Hungary
    31. 31. India
    32. 32. Indonesia
    33. 33. Iraq
    34. 34. Israel
    35. 35. Kazakhstan
    36. 36. Korea
    37. 37. Latvia
    38. 38. Malaysia
    39. 39. Mexico</li></li></ul><li>Geography<br />www.transparency.org<br />www.tinyurl.com/jpa009<br />
    40. 40. Hospitality & promotional expenditure<br />“Hospitality and promotional expenditure can be employed improperly and illegally as a bribe”<br />Draft guidance<br />Professional education often a cover<br />‘lavish’<br />MoJ want to trigger a review of hospitality standards<br />SFO say “used.. to groom employees.. into a position of obligation and thereby prepare the way for major bribery”<br />
    41. 41. Issues with FCPA policies<br /><ul><li>‘Foreign Public Official’
    42. 42. Hospitality
    43. 43. Bans facilitation payments
    44. 44. De minimis levels
    45. 45. Adequate procedures
    46. 46. Policies must be reviewed
    47. 47. “clear, practical, accessible and enforceable”
    48. 48. Legal issues with helplines</li></li></ul><li>Interaction with US<br />“What happens in Las Vegas”<br />Dodd-Frank bounty hunting provisions<br />Increased SFO focus on whistleblowers<br />Public sector tender debarment<br />Innospec<br />
    49. 49. Practical issues<br />Stretch of in-house resources<br />Death of privilege<br />Consent to collect data<br />Valid employee consent?<br />Legal obligation in which country?<br />Document/laptop seizures<br />Helpline issues<br />Especially sensitive data<br />Need enhanced data security<br />
    50. 50. Practical Steps<br />Education, education, education<br />Culture<br />Zero tolerance of bribes - whether public officials or not?<br />Systems<br />no post-it notes<br />tie in with other measures e.g. revenue recognition; export control<br />pay<br />
    51. 51. Practical Steps<br />Code of conduct insufficient<br />proper training and monitoring essential<br />must be refreshed and not one hit e.g. webcasts, tweets<br />not US centric<br />Third parties e.g. agents; joint ventures; distributors<br />proper due diligence <br />contractual obligation to obey your policies (including records)<br />right to audit<br />no sub-agents without consent <br />
    52. 52. Practical Steps<br />Get to know audit committee<br />Keep country focused for investigations & be sensitive to culture<br />Work out a plan to get to regulators quickly<br />Have the response team worked out<br />External counsel<br />PR/public affairs<br />Plan, rehearse & revise response<br />
    53. 53. Resources<br />UK legislation – www.bit.ly/ukbribe<br />Bribery & FCPA – www.bit.ly/rlbribe<br />Dodd-Frank – www.bit.ly/usakzo<br />Webcasts – www.tinyurl.com/jpa007<br />Twitter – www.twitter.com/armstrongjp<br />
    54. 54. <ul><li>jparmstrong@</li></ul>duanemorris.com<br /><ul><li>020 7786 2117</li></li></ul><li>The Bribery Act 2010 and ensuring adequate procedures<br />Ben Luddington<br />Grant Thornton UK LLP<br />
    55. 55. The Bribery Act 2010Anti-Bribery & Corruption Ben LuddingtonJanuary 2011<br />
    56. 56. Why have adequate procedures<br />
    57. 57. Guidance on adequate procedures<br />Draft MoJ guidance October 2010<br />Transparency International guidance July 2010<br />GC 100 paper December 2009<br />Woolf report on ethical business conduct May 2008<br />
    58. 58. An adequate procedures cycle<br />Culture<br />Top levelcommitment<br />Policies and procedures<br />Duediligence<br />Effectiveimplementation<br />Knowledge<br />Riskassessment<br />Action<br />Monitoringand review<br />
    59. 59. Knowledge<br />Risk assessment<br />Regular assessments<br />New products and/or markets<br />Due diligence<br />Business relationships<br />Responsibility for undertaking due diligence <br />Repeat due diligence – how often?<br />
    60. 60. Culture<br />Top level commitment<br />Senior management involvement<br />Demonstrate zero tolerance<br />Policies and procedures<br />Policies should be clear and practicable <br />Policies for gifts, hospitality and expenses<br />Policy on facilitation payments<br />Procedures applied consistently internal and externally<br />
    61. 61. Action<br />Effective implementation<br />Detailed record of implementation<br />Senior management understanding and involvement on implementation<br />Approach – on the ground, through different layers of management<br />Monitoring and review<br />Individual(s) appointed with responsibility<br />Confirmation of compliance/external audit?<br />Regular review of effectiveness and compliance<br />
    62. 62. A suggested approach <br />Step 1 - Appoint a steering group with a chairman <br />Step 2 - Conduct a corruption risk assessment<br />Step 3 - Design mitigating procedures and controls<br />Step 4 - Develop an implementation programme<br />Step 5 - Develop a monitoring and review programme<br />
    63. 63. A suggested approach - understand YOUR risk<br />
    64. 64. The corruption risk assessment<br />
    65. 65. Issues<br />Corporate hospitality<br />Facilitation payments<br />M&A – successor liability<br />Ignoring the Act<br />
    66. 66. The Act comes into force April 2011<br />
    67. 67. Thank you for your attention<br />
    68. 68. Your presenter today<br />Ben Luddington<br />Associate Director<br />T 020 7865 2604<br />M 07971 555 806<br />Eben.luddington@uk.gt.com<br />
    69. 69. Harnessing learning technology to ensure compliance <br />Tracy Capaldi-Drewett, Director<br />REDTRAY<br />
    70. 70. What can ALTO do for you?<br />Scalable, robust SaaS solution <br />No need to invest in hardware or IT resources<br />Reduce financial and regulatory compliance risk <br />Comprehensive tracking and reporting<br />Identify and manage staff competency <br />Reduce training administration costs<br />
    71. 71.
    72. 72.
    73. 73.
    74. 74.
    75. 75.
    76. 76.
    77. 77.
    78. 78. Bribery Act Compliance (Bac) e-learning<br />REDTRAY and Routes2Training bring you:<br />A complete customisable compliance solution, based on Ministry of Justice draft Guidance. The elearning addresses the direct and indirect obligations on UK business<br />The Course covers:<br />The Law and also case examples illustrating offences<br />Internal and External Controls that enable compliance<br />An Anti-Corruption Statement <br />For full details email marketing@redtray.co.uk. <br />  <br />
    79. 79. Q&A session<br />Chaired by Tracy Capaldi-Drewett, Director<br />REDTRAY<br />
    80. 80. Networking and a chance to try alto and Elearning<br />
    81. 81. Thank you!<br />For further information, please contactmarketing@redtray.co.uk<br />www.redtray.co.uk<br />
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