REDTRAY Inspirations Event: Compliance and croissants the bribery act 2010 final
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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 ...

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  • The draft guidance makes it clear that hospitality is fully within the ambit of the new law saying “Hospitality and promotional expenditure can be employed improperly and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 REDTRAY Inspirations Event: Compliance and croissants the bribery act 2010 final Presentation Transcript

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