Anti bribery

Introduction – Anti Bribery
• If there is a risk that anyone working within an
organization, including third parties and subsidiaries, might
be exposed to bribery through work activities, it's vital that
there are anti-bribery policies and procedures in place
 Bribery is illegal. The negative effects of bribery are felt by businesses
individuals and society as a whole and the act of giving or receiving bribes
recognized as a major in Sustained economic development.
 The Bribery Act 2010 was introduced to modernize bribery law. The Act seeks
to support free and fair competition arid is designed to tackle al forms of
bribery
 Throughout this course, we will present the six main principles the Bribery Act
2010 and will d row your organization should implement anti bribery policies
and procedures

Course Aims
• By the end of this course , learner will:
• Understand the key provisions of the Bribery Act 2010
• Be able to identity potential bribery risk situations and
circumstance.
• Understand the principles and the implication for business.
• Be able to explain why anti bribery measures and procedures are
essentials.
• Know what information must be included in an anti bribery and
corruption policy and when business might need one.

Topics to be Covered in this section
are
• History of anti Bribery
• BAE System
• Munir Patel
• Aim and Scope of Bribery Act
• Who does the Act cover?

What is Bribery?
• For Example this could cover trying to influence a decision
maker by giving them extra benefit rather than by what can
legitimately be offered as part of a tender process here.
There are six main principles of the Bribery Act
1. Proportionate Procedures.
2. Top Level Commitments
3. Risk Assessment.
4. Due Diligence
5. Communication
6. Monitoring and Review
• Very generally, bribery is defined as giving someone a
financial, or other, advantage to encourage them to
perform their functions or activities improperly, or to
reward that person for having already done so.

History of Anti -Bribery
In an attempt of fix these issues, the Bribery Act 2010 made
it an offence for an organization to fail prevent bribery as
well as adding to the list of bribery offences that can be
prosecuted.
The introduction of the Act brought in four new criminal
offenses:
1. Bring Bribed.
2. Bribing another.
3. Bribing a foreign officials.
4. Failure of a commercial organization to prevent bribery.
Additionally, responsibility for ensuring that bribery does
not happen shifted and was placed upon all firms who
operate in UK.
Failure of commercial organization to prevent bribery being
committed on its behalf is an offence.
• Historically, it has always been difficult to prosecute
bribery offences as it was a requirement to prove both
parties had been involved. Addition , it could be tricky
to prove that an individual had acted on behalf of a
company

BAE System
• As a result, BAE was required to pay a $400m fine to
the US in 2010 after admitting certain acts which
amounted, in essence, to ‘defrauding the US’ over sales
of fighter planes to Saudi Arabia and Eastern Europe.
• BAE also had to pay a 30m settlement with the SFO
due to breaching its duty to keep accounting records in
Tanzania
• BAE Systems was eventually prosecuted in relation to
its record keeping put simply, failure to keep proper
books and records in the circumstances this may seem to
be unsatisfactory and is a far cry from the allegations of
bribery which caused the initial investigation.
• However, the introduction of the Bribery Act in 2010
has meant that there are many more options for
prosecution of both organizations and individuals
• In 2007, the UK'S Serious Fraud Office (SFO), the Ministry of
Defence and the US Department of Justice began to look into the
dealings and compliance with anti-bribery law of BAE Systems, a
defence, security and aerospace company.

Munir Patel
• Mr. Munir Patel, a former magistrates’ court administrator, was
sentenced at Southwark Crown Court to six years in prison for
bribery and misconduct in a public office.
• Mr. Patel pleaded guilty to accepting /receiving a ES00 bribe to
‘get rid’ of a speeding conviction on the court database.
• The sentence given included three years for taking a bribe.
• Following the conviction a member of the Crown Prosecution
Service CPS said, ”This prosecution is the first of its kind under the
Bribery 2010. which has provided a significant weapon in the
armoury of prosecutors that enables us to focus on the bribery
element rather than general misconduct behaviour”.
• In 2011, the first case was prosecuted under the Bribery Act
2010

Aim And Scope of Bribery Act
• The Act takes a robust approach to tackling commercial bribery, which is
one of its principal objectives. The offences are not, however, limited to
commercial bribery. There may be many examples outside the commercial
sphere where individuals attempt to influence the application of rules.
regulations and normal procedures
• Examples would include attempts to influence decisions by local
authorities' regulatory bodies or elected representatives on matters such as
planning consent, school admission procedures or drink tests
• A joint publication issued by the SFO and the CPS 234 states the aim of
the new Bribery Act as follows:

Who Does the Act Covers?
• The Bribery Act 2010 covers:
 Companies based in the UK
 UK companies operating abroad.
 Overseas companies with a demonstrable
presence in the UK
Note that companies based in the UK are forbidden to pay bribes to gain business anywhere in the world, even in those countries where
bribes are commonplace.
Any business that has a close connection to the UK must comply with the Act. Some businesses might not be covered by the scope of the art
for example, those that are only listed on the London Stock Exchange.

Summary
• Bribery is an act of giving someone a financial or other
advantage to encourage them to act improperly, or as a
reward for already doing so.
• Bribery is a criminal offence under the Bribery Act 2010.
• The Bribery Act are offenses are valid to both commercial
organization and individuals.
• The Bribery Act 2010, is specific to offences involving
bribery and does not include any other “White collar”
offenses.
• The Act Under companies based in the UK , UK companies
operating abroad and overseas companies with a close
connection to the UK
• Failure of a commercial organization to prevent bribery
being committed on its behalf is a criminal offense.

Different Categories of Bribery
• The Bribery Act 2010 clarifies
that bribery is a criminal
offence, but what constitutes
bribery and how is it defined?
• This section of the course looks
at the different categories of
bribery in more detail and
explains the penalties that
individuals and business may
face if they break the law.

are
• What constitutes a bribe?
• Financial or other advantages
• Gifts and hospitality
• When does it become improper?
• Bribery offences
• Penalties

What constitute a bribe?
Bribes are just not momentary offerings. They can also be ‘advantages’ and may include:-
 Gifts Hospitality.
 Free services.
 A Waiver of payments due.
 Favors
 Promises
To be a bribe, the advantage must be to perform an ‘improper function or activity’. The term improper broadly means breach of an
expectation of performance, for example, trust good faith 441 or impartiality.
Monetary benefits, gifts, hospitality or other advantages given properly are not considered to be bribes.

• The propriety of a financial or other advantage is determined by
whether it is:
• Intended to induce someone to act or perform a function or service
improperly.
• Intended to reward them for having done this.
• Offered knowing that it would be improper for the recipient to receive
it.
• Impropriety is judged against what would be expected of a reasonable
person. Local customs or practices are no defence So unless they are in
written law, i.e. legislation).
•
Improper acts done (or committed to be done) will always be judged
against what is expected of the 'notional reasonable person.
•
Financial and
Other
Advantages
The propriety of a financial or other advantage is determined by whether it
is:
Intended to induce someone to act or perform a function or service
improperly.
Intended to reward them for having done this.
Offered knowing that it would be improper for the recipient to receive
it.
Impropriety is judged against what would be expected of a reasonable
person. Local customs or practices are no defence So unless they are in
written law, i.e. legislation).
Improper acts done (or committed to be done) will always be judged
against what is expected of the 'notional reasonable person.

Gifts and Hospitality Gifts and hospitality, incentives and free services can
amount to a bribe but are not necessarily bribes; it
depends upon the propriety.
How this is determined is far from straightforward but, in practice,
it can be seen that, to a large extent, common sense applies
Consider the following scenario:
You, the decision-maker, have recently secured a business deal
with a small company and you will be buying a large volume of
their product. After agreeing the deal, they send your company a
box of chocolates with a card saying Thank you for choosing our
company
This is not a bribe, because the deal has already been secured and
the gift was given in good faith. It is not out of proportion for the
contract made.
However, if the company, in secret gave you a E10,000 gift before
you made your decision, this would be considered a bribe. It is not
simply a gift: it's targeted at the decision-maker, given in secret
and excessive of expected gifts or hospitality,

When does it become Improper?
Indicators of, or evidence that can be
used to show, impropriety include:-
Concealment
Disproportionate to the relationship
Excessiveness.
Going beyond usual market practice.
Payments outside of contractual obligations
Payments redirected to an unrelated third party.
Benefits being targeted at key decision-makers.
It can be difficult to know when a payment, gifts, hospitality or other advantages is ‘improper’.

Bribery Offences
For individuals, bribery offences include:
 Offering a bribe.
 Promising to pay a bribe.
Giving a bribe.
 Asking for a bribe.
 Agreeing to receive a bribe.
 Receiving a bribe.
 Bribing a foreign public official.
For commercial organisations, it is a bribery offence to fail to prevent
bribery being committed on behalf of the organisation
It is worth noting that bribes can come through a third party and do
not necessarily need to be direct from A to B.

Penalty
Under the Bribery Act 2010:
 Individuals charged with serious offences, tried in the Crown Court carry maximum penalties of 10 years imprisonment
and unlimited fines.
 Individuals charged with less serious offences tried in the Magistrates' Court carry maximum penalties of 12 months
imprisonment and £5000.
 Organisations charged can face unlimited fines.
A bribery conviction could also prompt investigations by the Financial Conduct Authority (FCA) and can impact an
organization's ability to do business with the public sector anywhere in EU.
Depending on the severity of the offence, the
maximum penalties vary.

Summary
• A bribe must be an ‘improper’ advantage. Bribery can include
money, gifts. hospitality, free services, favours or promises.
• Gifts, monetary benefits, hospitality and other advantages that
are given properly are appropriate or are expected in the
situation are not considered bribes.
• Extreme or lavish hospitality which has an intentional, financial
or other advantage is a bribe.
• Offences include giving promising or offering a bribe,
requesting agreeing to receive or accepting a bribe bribing a
foreign public official and failure of the organisation to prevent
bribery being committed on its behalf.
• The penalty for a bribery offence for individuals is a maximum
of 10 years imprisonment and an unlimited fine The penalty for
organisations is an unlimited fine.

Anti Bribery and its Principles
In order to aid businesses to comply with anti-bribery legislation, the
Ministry of justice has put in place some simple principles for all
businesses to follow.
This section of the course looks at these
principles in more detail, outlining the best
practice that organisations should be able to
demonstrate.

are
• What is anti – Bribery?
• The six principles of the Bribery.
• Good practice by organisations.

What is Anti- Bribery?
Anti-bribery means putting measures in place to prevent bribery
from happening in your organisation.
Bribery is illegal. Therefore. all businesses should have an anti
bribery policy in place if there is a risk that anyone who works for
the business or on behalf of the business might be exposed to it.
Broadly an anti-bribery policy should aim to :-
• Reduce and control the risk.
• Provide the rules about accepting gifts.
• Give Dance on how business should be conducted.
• Provide detection on how to old conflicts of interests.
All staff should be aware of the policy and the information that it
contains.

To help you put adequate procedures in place, the Ministry of Justice (Moj) has published a set of six principles that you can use.
The six principles cover
1. Proportionate procedures.
2. Top level commitment.
3. Risk assessment.
4. Due diligence.
5. Communications
6. Monitoring and review
These principles are intended to be flexible as smaller businesses are likely to face different challenges to bigger companies.
Six Principle of Anti- Bribery

Principle 1 – Proportionate Procedures
 Proportionate procedures revolve around using ‘common
sense’ ko decide how rigorous procedures need to be.
 Organisations should start by carrying out a thorough risk
assessment. Following this, they will then choose
appropriate procedures and policy suited for the size and
complexity of the business and likelihood of exposure to
bribery
 The procedures need to be
Clear.
Practical
Accessible.
Effectively implemented.
Enforced.

Principle 2 – Top Level Commitment
 Commitment to anti- bribery must start at the top. Senior start
set the culture of the company therefore, it's important they
always demonstrate their commitment to company policies
and procedures.
 Its vital that the organisation
 Enforces a zero-tolerance attitude towards bribery.
 Clearly communicates all policies to employees and any third
parties or subsidiaries.
 Ensures everyone, at all levels in the organisation understands
that they are expected to adhere to company procedures.
 Creates policies and procedures for whistleblowing to protect
employees.

Principle 3 – Risk Assessment
 A bribery risk assessment will help organisations to
identify both internal and external risks of bribery to
the company.
 Each risk should be measured in terms of likelihood
and severity and the details of actions taken to
reduce or eliminate risks should be recorded and
acted upon.
 It’s important that the risk assessment is regularly
reviewed and updated, and any changes are
reflected in any anti-bribery policy or procedure.

Principle 4 – Due Diligence
Due diligence is an important part in managing bribery and
corruption within an organisation.
In terms bribery prevention, this means organisations should:
Research the specific risks associated with bribery in their
business sector and trading countries.
Pay close letter on to the behaviour of anyone acting on
that of the business, both at home or abroad.

Principle 5 – Communication
 It's important to communicate all policies and procedures with
everyone. This includes any third parties or subsidiaries
associated with the business.
The organisation should:
 Ensure any associated parties are aware of the policies and
procedures and understand the information.
 Enforce clear and confidential whistleblowing procedures
 Provide employees with any appropriate training
 Consider setting up secure, confidential and accessible
speak up procedures for employees.

Principle 6 – Monitoring and Review
Carrying out these steps once is not enough. Changes
always occur within business, for example, there might
be changes in organisation structure products or trading
countries, or the opening of new sites abroad which
might alter the risks.
Therefore, it's important to check and update all policies
and procedures to ensure that they remain effective and
to communicate any changes throughout the company.

Good Practice by Organisation
Good practice can include:
• A whistleblowing helpline that is outsourced to
a specialist and confidential service provider.
• Receipts are demanded or required for all
payments made.
• No cash payments are accepted.
• Gifts are always pooled.
• All staff, agents and contractors receive
training on anti bribery measures and
procedures .
• Having a clear and accessible bribery policy and
procedure which all staff, and others connected
with the business are made aware of.

Summary
• Proportionate procedures :The application of ‘common
sense’ is deciding how rigorous an organisation’s
procedures need is be.
• Top level commitment: Those in control of the organisation
at the highest level must demonstrate a commitment to
maintaining the law.
• Risk assessment: The organisation should consider the
internal and external risks of bribery to the company and by
persons associated with it
• Due Diligence: Organisation should undertake research into
the specific bribery risks in their jurisdiction and/or the
particular trade or profession.
• Communication: Ensuring all policies and Procedures are
effectively communicated and understood throughout the
organisation and externally
• Monitoring and review: All policies and procedures must be
regularly updated and checked to ensure that they remain
effective.

Anti Bribery Policy
 As part of good practice, it's important that
organisations have a clear and accessible
anti-bribery policy and procedure (often
called an Anti Bribery and Corruption
Policy), which anyone connected to the
business is made aware of.
 Additionally, organisations might have a
separate code of conduct relating to bribery
and corruption for stall or this might be
included within the policy.
 No matter your position within a company,
you should be aware of your company's anti-
bribery policy and the information contained
within it in your responsibilities
 The final module of this course will explain
the different sectors of an anti-bribery
policy, what information and guitars it
should outline for employees and other
connected party and when a company needs
one

are
• What is an anti-bribery and corruption policy?
• Is your organisation high risk?
• Anti-bribery and corruption policy
• Writing and signing off the policy

What is an Anti-Bribery
and corruption Policy
 As we have seen, it is illegal to 'offer, promise, give, request,
agree receive or accept bribes’. Therefore, if your
organisation has a high risk of bribery or corruption an anti
bribery and corruption policy can help protect your business.
 An anti-bribery policy is piece of guidance tailored for an
organisation, that covers the rules and guidance relating to
anti bribery that employees and any associated subsidiaries
and third parties, should follow. This Can be supplemented by
an anti bribery code of conduct, which can be used to
produce both awareness ad positive behaviors.
 If the risk of bribery and corruption to a business is low, it
might be unnecessary to create in depth policies and
procedures.
 However, in the event that your company is prosecuted under
the Bribery Act 010 and there is a no policy and procedure in
place you won't be able to rely on the ‘adequate procedure
defence’.

Is your
organisation
High Risk
Organisations that carry out most of their business activities in the UK are
likely to be relatively low risk.
When business operations are carried out overseas, the risk will likely
increase.
However, when deciding the bribery and corruption risk, a business should
also consider the:
 Business sector.
 Value of the product or project,
 Duration of the project or business arrangement.
 Kind of business activities undertaken.
 People employees will engage with.
Remember antibribery policy and procedures should proportionate to the
risk associated with the business.
A full risk assessment should be undertaken before drafting an anti bribery
policy and any procedures should be based on the identified risk

Anti Bribery and corruption policy
The content of an anti-bribery policy will vary from business to business, but there are sections that the government recommend
are included. These align
with the six principles outlined earlier in the course
An anti-bribery and corruption policy should include:
 Policy statement.
 Who is covered by the policy.
 The definition of bribery.
 Code of conduct.
 Employee responsibilities.
 Company policies including whistleblowing and training policies.
 Information on how the policy will be monitored and reviewed

Writing and Signing off the Policy
 Writing the anti-bribery and corruption policy is the
responsibility of a company's CEO or similar. If the
company has a board of directors, they must be aware
of the policy and must sign off on it.
 This is also the case when any changes or updates
have been made
 After the policy has been signed off, all employees and
affected parties must be made aware of the policy and
any changes They must also be with any additional
training or information that has been mentioned
throughout the policy.

Summary
• If your organisation has a high risk of bribery or corruption,
an anti-bribery and corruption policy can help protect your
business from these behaviours.
• Ant bribery policy and procedures should be proportionate
to the risk associated with the business.
• The content of an anti-bribery policy will vary from business
to business but there are sections that the government
recommend are included.
• These are policy statement who it covers, the definition of
bribery, a code of conduct employee responses company
policies and monitor and review procedures.
• The policy must emphasis your organisation's zero tolerance
to bribery and corruption.
• The policy must be regularly reviewed and Updated, any
improvements must be Implemented as soon as possible

Anti bribery

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