The document summarizes the UK Bribery Act 2010. It discusses how the UK ranked 11th but fell to 20th on a corruption index. It then outlines the main provisions of the Act, including prohibiting bribery, influencing public officials, and failing to prevent bribery by associated parties. It also discusses penalties like imprisonment and fines. Finally, it provides guidance on adequate procedures for complying with the Act, such as risk assessment, top-level commitment, due diligence, training, and monitoring.

1. Thames Valley HR forum
Bribery Act 2010
Nicola Diggle
Blake Lapthorn

2. How Corrupt is UK PLC?
Transparency International Corruption Perception
Index
180 Countries Ranked – low score is good
UK ranked 11th 2005 (better)
UK ranked 20th 2010 (worse)

3. What does the Bribery Act cover?
Prevents the giving or receiving of a financial or other
advantage to encourage or reward the improper
performance of functions or activities
The Act prohibits:
– Bribing
– Being bribed
– Bribing a foreign public official; and
– The "commercial organisation offence" of failure to
prevent bribery
In force with effect from 1 July 2011

4. Penalties for breach of the Act
Individuals face up to ten years' imprisonment
Commercial organisations (including partnerships)
risk:
– an unlimited fine
– ban on tendering for public contracts
– directors, managers and company secretaries can also
face individual liability (for consent or connivance)

5. Main Features of the Bribery Act 2010
General Offences - Bribing or Receiving a Bribe
Paying or offering to pay a bribe
Requesting or receiving a bribe

6. Main Features of the Bribery Act 2010
Examples
Bribing a planning officer to grant you planning
permission
Planning officer asking you for a reward for granting
permission
Sometimes making the offer itself is enough
Corporate hospitality is ok provided it is reasonable
and proportionate

7. Main Features of the Bribery Act 2010
Bribing of Foreign Public Officials (FPO)
Cannot bribe overseas officials
Local written laws that permit investment in the local
economy or paying for training is acceptable
Facilitation payments are prohibited unless permitted
by local law
SFO will prosecute if payments are routinely made

8. Main Features of the Bribery Act 2010
Territorial Jurisdiction
Rules relating to the two general offences and bribing
a Foreign Public Official
Offence committed if any act or omission takes place
in the UK
Offence committed if the person has a “close
connection” with the UK
Defined as a UK citizen, resident, company or
Scottish Partnership

9. Main Features of the Bribery Act 2010
Corporate Offence of Failing to Prevent Bribery
A relevant commercial organisation (C) is guilty of an
offence if a person (A) associated with C bribes
another person intending to obtain or retain:
business for C
an advantage in the conduct of business for C
Relevant commercial organisation :
UK company or partnership doing business here or
elsewhere
Overseas company/partnership carrying on business
or part of business here

10. Main Features of the Bribery Act 2010
Corporate Offence of Failing to Prevent Bribery
A relevant commercial organisation (C) is guilty of an
offence if a person (A) associated with C bribes
another person….
A person is associated with C (disregarding any
bribe under consideration) if A performs services
for or on behalf of C
Can be an agent, subsidiary or parent company but
will depend on all the relevant circumstances
An employee of C is presumed to be providing
services for C

11. Main Features of the Bribery Act 2010
Corporate Offence – Adequate Procedures Defence
C has a defence that it had in place adequate
procedures designed to prevent persons associated
with C from undertaking such conduct
Adequate procedures not defined in the Act but
Guidance now published to assist companies
Objective is to support businesses in determining the
sorts of bribery measures they can put in place
CBI has lobbied hard to get better clarification from
Government on the Act

12. Main Features of the Bribery Act 2010
Guidance on Adequate Procedures
Six principles which underpin Bribery Prevention:
Risk Assessment is first then
Top Level Commitment )
Due Diligence )
Proportionate Procedures ) Risk Mitigation
Communication and training )
Monitoring and Review )

13. Six principles
First – Undertake a Risk Assessment
You must regularly and comprehensively assess the
nature and extent of risks relating to bribery which
you are exposed
No “one size fits all”
Skills of persons performing risk assessment
Internal risks - unawareness of staff of risks
External risks – Country, Transaction, Partner, Sector

14. Six principles
Top Level Commitment
The Board of Directors are committed to preventing
bribery
Publish statements of commitment to counter bribery
for internal and external communication
Appoint a senior person to oversee implementation of
anti bribery programme

15. Six principles
Due Diligence
You have due diligence policies and procedures in
place which cover:
– all parties to a business relationship
– agents and intermediaries
– all forms of joint ventures
– all markets in which you operate

16. Six principles
Proportionate Procedures
Procedures and therefore resources expended need
to be proportionate to risks you face
Procedures should ensure that there is a practical
and realistic means of achieving your anti-bribery
policy

17. Six Principles
Communication and Training
Anti-bribery policies and procedures are embedded
and understood throughout the organisation
Appoint someone senior to oversee the
implementation
– Internal and external communication
– Method and timescale of training
Various methods of training
Arrangements for Monitoring
Penalties for breaching policy

18. Six principles
Monitoring and Review
Monitoring and review mechanisms to ensure
compliance
Internal monitoring
Transparency is important
External auditors

19. Miscellaneous Matters
The Likelihood of a Prosecution
– Resources
– Evidential Test
– Public Interest Test
– Must have regard to Guidance
Sentence
– 10 years imprisonment for an individual convicted of an
offence (nb senior officer liability where corporate
offence committed)
– Unlimited fine for company

20. What should organisations be doing about the Act?
– Anti-bribery/ethical conduct policy with zero tolerance
– Any breach of policy deemed gross misconduct
– Gifts/hospitality policy - reasonable and proportionate
– Check political and charitable donations
– No policies which reward excessive risk
– No incentives for employee to commit bribery offence
– Vetting policy/additional recruitment checks
– No discrimination against nationals of other countries

21. What should organisations be doing about the Act?
Consider amending:
– Contracts of employment
– Director service agreements
– Non-employee contracts
– Disciplinary policy
– Whistleblowing policy
– Expenses policy
– Bonus/commission schemes

22. Any questions?
Nicola Diggle
Senior solicitor
Commercial Dispute Resolution
Tel: 01865 254285
Email: nicola.diggle@bllaw.co.uk