| Time is ticking away for
businesses to make sure they have taken
the steps appropriate to their operations
to prepare for the Bribery Act, which
comes into effect on 1 July 2011.
The implementation of the Act was held
up following a delay in publication of
guidance on its measures, which had been
due early in the new year. The guidance
was eventually published on 30 March.
A key element of the new Act is that it
creates a new offence that can be
committed by commercial organisations
which fail to prevent persons associated
with them from bribing another person on
their behalf. The only defence will be to
show “adequate procedures” (not defined in
the Act) to prevent bribery.
The Ministry of Justice guidance says
many organisations, particularly those
whose business is carried out primarily in
the UK, will face little or no risk of
bribery.
But it adds: “If you operate overseas,
the risks may be higher. Factors such as
the particular country you want to do
business in, the sector which you are
dealing in, the value and duration of your
project, the kind of business you want to
do and the people you engage to do your
business, will all be relevant.
“If there is very little risk of
bribery being committed on behalf of your
organisation then you may not feel the
need for any procedures to prevent
bribery. If, having assessed the position,
there is a risk of bribery then, if you
want to rely on the defence [of adequate
procedures], the procedures you adopt
should be proportionate to that risk.
“In micro-businesses it may be enough
for simple oral reminders to key staff
about the organisation’s anti-bribery
policies.”
One area of concern over the Bribery
Act has been how it will affect
hospitality. The Ministry of Justice
guidance says: “As a general proposition,
hospitality or promotional expenditure
which is proportionate and reasonable
given the sort of business you do is very
unlikely to engage the Act.
“So you can continue to provide tickets
to sporting events, take clients to
dinner, offer gifts to clients as a
reflection of your good relations, or pay
for reasonable travel expenses in order to
demonstrate your goods or services to
clients if that is reasonable and
proportionate for your business.”
For specific questions or concerns
relating to your business, you should
always take legal advice from a solicitor.
LINK:
Ministry of Justice guidance |
