The document discusses the UK Bribery Act 2010, which created new bribery offenses and established a corporate offense of failing to prevent bribery. It outlines the Act's provisions, including creating offenses for actively and passively bribing individuals, bribing foreign officials, and failing to prevent bribery by employees. It also discusses guidance from the Ministry of Justice on complying with the Act through adequate procedures and a nine-step compliance plan. The presentation compares differences between the UK Bribery Act and the US Foreign Corrupt Practices Act.

1. The Bribery Act 2010
Bribery – no longer a ‘conventional’ way
of doing business
TELFA CONFERENCE AND GLOBAL LAW
FORUM IN CONJUNCTION WITH USLAW
MOSCOW
7 June 2013 – 9:30am to 12 noon
Richard Isham
Wedlake Bell LLP
London

2. Road map
• Background
• What the Act does – the new offences
• Prosecution, penalties and other sanctions
• Extra-territorial application
• MoJ guidance
• Corporate hospitality
• Corporate offence
• Facilitation payments
• The six principles governing adequate bribery prevention
procedures
• Compliance - The nine step plan

3. Background
Dec 1998 UK ratified OECD Bribery Convention
Nov 2009 Bribery Bill introduced into parliament
8 Apr 2010 Bribery Act 2010 receives Royal Assent
Mar 2011 MoJ Guidance on adequate procedures and Joint
Prosecution Guidance issued
1 Jul 2011 Bribery Act 2010 comes into force

4. What the Act does
The Act creates:
• Two general offences of bribery:
• giving a bribe (active bribery); and
• receiving a bribe (passive bribery)
• A new offence of bribing a foreign public official
• A new corporate offence of failing to prevent bribery by an
employee or agent

5. Offering a bribe – ‘P’
P will be guilty if he:
• offers
• promises, or
• gives an advantage (financial or otherwise)
to another (R) intending to induce R to bring about the
improper performance of a relevant function or activity

6. Receiving a bribe – ‘R’
R will be guilty if he requests, agrees to receive or accepts a financial or
other advantage:-
• intending that he or another should improperly perform a relevant
function or activity (case 1)
• where R’s request, agreement or acceptance itself constitutes the
improper performance (case 2)
• as a reward for the improper performance by R or another (case 3)
• where R (or another at R’s request or with R’s assent or
acquiescence) improperly performs a function or activity in anticipation
of or in consequence of such a request, agreement or acceptance
(case 4)

7. Bribing a foreign public official – ‘FPO’
Only relates to active bribery and requires the intention of
P to:-
• influence the FPO in his/her capacity as a foreign
public official; and
• obtain or retain a business or other advantage in the
conduct of business

8. Senior officer liability
• If one of these offences (offering or receiving a bribe or
bribing a FPO) is committed by a company with the
consent or connivance of a senior officer of the
company, both the senior officer and the company may
be guilty of the offence
• Includes directors, managers, secretaries or other
similar officers

9. Failure of a commercial organisation to prevent
bribery
• Committed if a person ‘associated’ with a commercial
organisation (C) bribes another with the intention to:-
• obtain or retain business for C; or
• obtain or retain an advantage in the conduct of
business for C
• C’s only defence: adequate bribery prevention
procedures

10. Prosecution and penalties
• Serious Fraud Office (SFO) – main prosecutor
• If convicted of offence of offering or accepting a bribe or
bribing a FPO:
• individuals - imprisonment of up to 10 years, an
unlimited fine or both
• company - unlimited fine
• If convicted of offence of failure to prevent bribery
• unlimited fine

11. Other sanctions
• Proceeds of Crime Act
• Public Contracts Regulations 2006
• Directors’ disqualification
• Fraud Act 2006
• FCA (formerly FSA) Principles for Businesses
• Companies Act 2006
• US Foreign Corrupt Practices Act 1977

12. Extra-territorial application
• Active and passive bribery and bribing a FPO is
committed if any part of the of the offence takes place in
the UK
• For offences committed outside the UK, a senior officer
can be guilty if he has a close connection
• C can be guilty of the corporate offence of failing to
prevent bribery irrespective of whether the acts or
omissions take place in the UK or elsewhere

13. MOJ guidance – Corporate Hospitality
• Proportionate hospitality is lawful
• Arranging hospitality and not attending it yourself equals a
red flag
• The prosecution have to show the hospitality was
intended to induce conduct that amounts to a breach of an
expectation that a person will act in good faith, impartially
or in accordance with a position of trust

14. MOJ guidance – Corporate offence (1)
• What is a ‘commercial organisation’?
• UK entities
• non-UK entities that ‘carry on business or part of a
business’ in the UK

15. MOJ guidance – Corporate offence (2)
• Who is an ‘associated person’?
• Performance of services for or on behalf of the
commercial organisation
• Supply chain / project with several subcontractors?
• Joint ventures?

16. MOJ guidance – Facilitation payments
• Prohibited
• No defence for de minimis payments
• Joint prosecution guidance → prosecutors will be
guided by public interest considerations

17. The six principles governing adequate
bribery prevention procedures
1. Proportionate procedures
2. Top level commitment
3. Risk assessment
4. Due diligence
5. Communication (including training)
6. Monitoring and review

18. Compliance – The nine step plan
1. Board resolution
2. Compliance director/manager or committee
3. Risk assessment
4. Develop a code of ethics, policies and procedures
5. Train the workforce on the code, policies and obligations under the
Act
6. Amend contracts of employment, handbook, disciplinary and
whistleblowing procedures
7. Have robust monitoring and reporting systems
8. Due diligence procedures and checks
9. Review terms of business

20. Some of the major differences between
the Bribery Act and the FCPA
Bribery Act 2010 FCPA
Covers corruption in a private to private
commercial context, not just where a foreign
public official is involved.
Applies only to bribery involving foreign public
officials.
Covers both active and passive bribery. Only covers active bribery involving foreign
public officials.
The offence of bribery of a foreign public
official does not require that the person was
trying to induce the foreign public official to
perform improperly.
Requires intent to induce the foreign public
official to do or omit an act in violation of his
lawful duty, or to secure an improper
advantage.
Commercial organisations commit an offence
if they fail to prevent bribery; so do ‘senior
officers’ if they consent or connive.
There is no specific offence under the FCPA
for failing to prevent bribery but companies
may be vicariously liable for acts of their
employees and agents regardless of their
level.
No defence for legitimate promotional
expenses and facilitation payments.
Affirmative defence for legitimate promotional
expenses. Facilitation payments permitted.

21. The Bribery Act 2010 - “Bribery – no longer a
‘conventional’ way of doing business”
Richard Isham
Wedlake Bell LLP
risham@wedlakebell.com
+44 (0)20 7395 3133
• © Wedlake Bell LLP 2013. All rights reserved.
• This document is for general information only and does not seek to give legal advice or to be an exhaustive statement of the law. Specific
advice should always be sought for individual cases. This reflects the law as at the date of publication June 2013.
The content of the presentation cannot be applied as legal counselling as this
will always be subject to actual and specific knowledge of the client’s situation.