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Bribery Act 2010: Has it Made a Difference

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Bribery Act 2010: Has it Made a Difference

  1. 1. One year on, is theREAL IMPACT COMING?
  2. 2. THE UKBRIBERY ACT- A REFRESHER
  3. 3. More effective legalframework to combatbribery and corruption inpublic and legal sectors.
  4. 4. Replaces complexoffenses in Preventionof Corruption Acts1889-1916.
  5. 5. Creates a discreteoffence of bribery of aforeign public official.
  6. 6. Creates a new corporateoffence of failure by anorganisation to prevent abribe being paid onits behalf.
  7. 7. Requires the Secretary ofState to publish guidanceabout procedures that arerelevant to commercialorganisations.
  8. 8. An individual guilty of bribing anotherperson, receiving a bribe or found to bebribing a foreign official
  9. 9. An individual guilty of bribing anotherperson, receiving a bribe or found to bebribing a foreign officialMaximum Prison Sentence: 10 Years.Fine: Unlimited.
  10. 10. A company found guilty of failing toprevent bribery
  11. 11. A company found guilty of failing toprevent briberyMaximum Prison Sentence: 15 Years forthose involved along with seniorexecutives and directors.Fine: Unlimited.
  12. 12. Companies may also findthemselves debarred from EU,US and other governmentprocurement lists.
  13. 13. Principle 1: Proportional ProceduresA commercial organisation’s procedures to prevent bribery by personsassociated with it are proportionate to the bribery risks it faces and to thenature, scale and complexity of the commercial organisation’s activities. Theyare also clear, practical, accessible, effectively implemented and enforced.
  14. 14. Principle 1: Proportional ProceduresA commercial organisation’s procedures to prevent bribery by personsassociated with it are proportionate to the bribery risks it faces and to thenature, scale and complexity of the commercial organisation’s activities. Theyare also clear, practical, accessible, effectively implemented and enforced.Principle 2: Top-level CommitmentThe top-level management of a commercial organisation (be it a board ofdirectors, the owners or any other equivalent body or person) are committed topreventing bribery by persons associated with it. They foster a culture withinthe organisation in which bribery is never acceptable.
  15. 15. Principle 1: Proportional ProceduresA commercial organisation’s procedures to prevent bribery by personsassociated with it are proportionate to the bribery risks it faces and to thenature, scale and complexity of the commercial organisation’s activities. Theyare also clear, practical, accessible, effectively implemented and enforced.Principle 2: Top-level CommitmentThe top-level management of a commercial organisation (be it a board ofdirectors, the owners or any other equivalent body or person) are committed topreventing bribery by persons associated with it. They foster a culture withinthe organisation in which bribery is never acceptable.Principle 3: Risk AssessmentThe commercial organisation assesses the nature and extent of its exposure topotential external and internal risks of bribery on its behalf by personsassociated with it. The assessment is periodic, informed and documented.
  16. 16. Principle 4: Due DiligenceThe commercial organisation applied due diligence procedures, taking aproportionate and risk based approach, in respect of persons who perform orwill perform services for or on behalf of the organisation, in order to mitigateidentified bribery risks.
  17. 17. Principle 4: Due DiligenceThe commercial organisation applied due diligence procedures, taking aproportionate and risk based approach, in respect of persons who perform orwill perform services for or on behalf of the organisation, in order to mitigateidentified bribery risks.Principle 5: Communication (including training)The commercial organisation seeks to ensure that its bribery prevention policiesand procedures are embedded and understood throughout the organisationthrough internal and external communication, including training, that isproportionate to the risks it faces.
  18. 18. Principle 4: Due DiligenceThe commercial organisation applied due diligence procedures, taking aproportionate and risk based approach, in respect of persons who perform orwill perform services for or on behalf of the organisation, in order to mitigateidentified bribery risks.Principle 5: Communication (including training)The commercial organisation seeks to ensure that its bribery prevention policiesand procedures are embedded and understood throughout the organisationthrough internal and external communication, including training, that isproportionate to the risks it faces.Principle 6: Monitoring and ReviewThe commercial organisation monitors and reviews procedures designed toprevent bribery by persons associated with it and makes improvementswhere necessary.
  19. 19. WILL THEBRI BE RY ACT VER ACT?
  20. 20. 9 OF 10LARGEST FOREIGN CORRUPTPRACTICES ACT (FCPA) FINES have been with non-US based companies.
  21. 21. 90%of FCPA prosecutionshave involved non-UScompanies. Bribery isnot only likely to beprosecuted in theUnited States.
  22. 22. WATCH YOURTHIRD-PARTYBUSINESS PARTNERS
  23. 23. SENIOREXECUTIVES ARE IN THEFIRING LINE
  24. 24. 65%of defendants in FCPAprosecutions over thepast 6 years have beenat senior level. Seniorexecutives are theindividuals facingprison and fines inrelation to fraud.
  25. 25. BRIBERY RISK& HIGH GROWTH OFTEN LINKED
  26. 26. • Abnormal cash payments
  27. 27. • Company procedures or guidelines not being followed
  28. 28. • Unexplained preference for certain contractors during tendering period
  29. 29. SOLUTIONS
  30. 30. Protect your organisation and its corporate reputation with Lexis® Diligence.
  31. 31. Protect your organisation and its corporate reputation with Lexis® Diligence. Get in touch: 020 7400 2809 risk@lexisnexis.co.uk www.lexisnexis.co.uk/risk

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