1. The Bribery Act 2010
Applying “Adequate Procedures”
David McIntyre
Head of Business Risk Services (North)
June 2011
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2. The Bribery Act 2010
• UK law with extra territorial jurisdiction
• Comes into force on 1 July 2011
• Penalties include imprisonment of up to 10 years and
unlimited fines
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3. The offences
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4. The Guidance
• Guidance for organisations in relation to the new offence
and ‘Quick Start’ guidance for smaller businesses have
now been issued by the Ministry of Justice
– For general application – based around six guiding
principles
– Advocates a proportionate response
– Corporate hospitality not prohibited by the Act
– Suggested procedures not mandatory
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5. The six guiding principles
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6. Top level commitment
• Board level commitment
• Communication of the organisation’s anti-bribery stance
• Leadership and involvement in anti-bribery agenda
• A response plan to deal with incidents of potential bribery
quickly and effectively
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7. Risk Assessment
• As part of wider risk management or separately
• Ensure adequate information / due diligence
• Consider the aspects of your business that might place
you at risk:
– Country risk
– Sector risk
– Transactional risk
– Business opportunity risk
– Business partnership risk
• Consider internal factors (culture / methods of working)
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8. Due diligence
• As part of wider due diligence framework or separately
• Requires sufficient information / expertise
• Informs risk assessment
• Associated persons
– Employees
– Agents acting on your behalf
– Companies performing services on your behalf
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9. Proportionate procedures
• High level policies providing anti-bribery stance
• Detailed procedures
• Proportionate to risk in each area
• Suggested common policies and procedures
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10. Communication (including training)
• Enhance awareness and understanding
– Internal communications
– External communications
• Training
– Proportionate to risk
– New employees/agents
– Existing employees/agents
– Ongoing training
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11. Monitoring and review
• Regular risk assessment
• Regular due diligence
• Regular review of procedures
– Adapt for changes in risk
– Test effectiveness of policies / procedures
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12. Corporate Hospitality
• No prescriptive limits
• Can it be justified –
– Reasonable and proportionate?
– What would a jury think?
– A demonstration of the organisation’s services?
• Set a clear policy and procedures
• Ensure adequate information, checks and review
– How much is spent, when and by whom
– Are names of recipients and other details accurately
recorded
– Gifts and hospitality register showing what has been
received
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13. Useful links
• Bribery Act 2010
www.legislation.gov.uk/ukpga/2010/23/contents
• Ministry of Justice Guidance and Case Studies
www.justice.gov.uk/guidance/docs/bribery-act-2010-
guidance.pdf
• Ministry of Justice ‘Quick Start’ Guidance
www.justice.gov.uk/guidance/docs/bribery-act-2010-
quick-start-guide.pdf
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