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Building a Defense Against Bribery and Corruption
Bribery and Corruption are widely considered to go hand in hand. Whether caused by personal greed or
difficulties, the results do not change. Bribery and Corruption have been part of our society and economy since
the beginning of time. It has long been known and tolerated to an extent, however its tolerance has been
diminishing. Governments and business organizations in many countries are less prepared to overlook these
actions. One can say that the tide is turning on Corruption and Bribery. These changes are ethical measures
aimed at countering these practices and exposing persons, figures and organizations in all sectors
New pressures on Bribery and Corruption are also arising from the increasing incidents of corrupt practices,
throughout governments and businesses. For the past few years there have been several developments in regards
to Bribery and Corruption cases, specifically with Governments and Financial Organizations. It is time to
reinforce and rebuild a better defense against these two areas, so as to safe guard economies and markets.
One of the main issues with Bribery and Corruption is the difficulty in identifying these cases. Many persons
who commit these crimes are usually affluent and can afford to bend the rules and get away with it on occasions.
The training of employees and individuals is essential in order to counteract Bribery and Corruption, as well as,
safeguard companies and Governments from these dangerous and illicit practices.
If you have any questions or are in need of further advice, contact us at KAW and we will be ready to assist.
Remember that any comments and queries can be sent to us at training@kawmanagement.com,
training.kawmgmt@candw.ag or info@kawmanagement.com or visit our website at www.kawmanagement.com.
KAW“ESTABLISHING RELATIONSHIPS BUILT ON TRUST”
 Introduction ………………………………………….… 1
 Building a Defense against Bribery and Corruption … 2
 The Effects of Corruption on Business …...…………… 3
 Word Search………….………….………..…………….. 4
 KAW Management Professional Services ...................... 5
 ACFCS Certification Package…...................................... 6
 Expert Articles ....……………………..……………….... 7

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Building a Defense Against Bribery and Corruption
By: KAW Management Services Limited
Bribery can be defined as “the offering, promising, giving, accepting or soliciting of an advantage as an
inducement for an action which is illegal, unethical or a breach of trust.” Whereas corruption can be classified as
“the abuse of entrusted power for private gain.” The two (2) most often go hand in hand, and in many countries
there are anti-bribery and anti-corruption laws in place.
It is important to note that bribery doesn’t always involve money, however it plays an integral role and can involve
any action deemed as improper, such as gifts, favours and promises. Therefore, entities must protect themselves
with thorough anti-bribery and corruption policies. These policies are put in place to increase the ethics and
compliance of an organization.
In Antigua and Barbuda, Bribery is a Predicate Offence under the Money Laundering Prevention Act, (MLPA).
A Predicate Offence is a crime that is a component of a more serious criminal offence. For example, Money
Laundering is the main offence and Tipping Off, Fraud, Bribery, and Willful Blindness are the Predicate Offences.
Building a defense against Bribery and Corruption is key to making sure your business thrives. Techniques such
as implementation of Whistle Blower mechanisms and training of employees and giving them the skills and the
knowledge can help to reduce these incidents. A clear and sound financial control, transparency and
accountability is also key. Putting in place proper procedures against receiving gifts and other commodities that
can be deemed unethical must also be done. An organization should periodically assess the nature and extent of
its exposure to potential Bribery risks both internal and external. Proper documentation is crucial for any defense
to show that sound adequate procedures are being put in place. This process should involve top-level
management.
Despite all that is done bribery is still neglected and enough manpower is not allocated to deal with it. However,
practical, responsible and transparent operational and management practices are vital to dealing with bribery and
corruption.

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The Effects of Corruption on Business
Written By: Linda Ray
Corruption inevitably leads to a diminished business climate when the public trust is put at risk, according to
Stanford Graduate School of Business. Corruption can take many forms that can include graft, bribery,
embezzlement and extortion. Its existence reduces business credibility and profits when professionals misuse their
positions for personal gain.
Inefficiency
When resources are tampered with and used improperly, the efficiency of a business suffers. Insufficient resources
are available to effectively run the business and maintain its levels of operations. When the news about corrupt
business professionals breaks, customers lose respect and trust, requiring company officials to spend valuable
time and resources to monitor the fallout and reassure clients the company is still viable. Legal fees, penalties and
public relations efforts reroute important resources form the core business and lead to an inefficient use of
company funds and personnel.
Lost Resources
In addition to the inefficient use of resources, corruption can have a number of other economic impacts on
business. Employee ranks often are inflated to cover up the corrupt professional’s activities. The cost of increasing
employee ranks in addition to any embezzlement that is going on is passed on to consumers in the form of higher
prices. Prices also can be inflated when corruption takes place outside a company in the form of corrupt
government officials who take bribes. Consumers pay the costs of vendor corruption when purchasing agents
require payoffs, or when vendors skim profits and raise prices to cover their illegal activities.
Weakened Development
Investors are skeptical of doing business with companies and municipalities that are known for corruption.
Whether you are seeking investment to grow your firm or you sell investments for a living, you will have a much
harder time finding willing investors when bribes or in-kind favors are required, or your business has a history of
corruption within its ranks. Competition is unfairly affected when investors’ risk is multiplied by changing
business climates that follow corrupt business practices. Due diligence is defeated when the facts change
according to the current levels of corruption. Practical investors steer clear of businesses with a corrupt history.
Increases Crime
The results of corruption in business add to the burgeoning roles of crime-fighting government agencies, police
departments and internal investigators. The trickledown effect of corruption usually ends up feeding black market
interests, and may even support the efforts of organized crime as the activities infiltrate various business levels.
Corruption begets continued criminal activity when it goes undetected. The effects of corruption in emerging
third world countries is evident and widespread, but even in America, where competition and greed can outweigh
the good of society, corruption fuels the growth of criminal enterprises and eventually affects the society in which
the business operates.

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Expert Articles
Bribery: How the UK Bribery Act Affects Bahamas Businesses
May 4, 2016 By Parris Whittaker, Attorney at Law
How is bribery in the commercial context dealt with by the courts, and how is it relevant to businesses in The
Bahamas? Prosecutors are taking a much stricter stance with individuals and organisations convicted of bribery
offences since the UK’s major bribery legislation came into force.
https://www.hg.org/article.asp?id=38225
Corporate Criminal Liability for Corruption Offences in Greece
November 12, 2015 By Sflegal law firm (former karydas Fouskarinis & Associates law office)
The basic legal framework concerning the liability of business entities for corrupt practices in Greece.
https://www.hg.org/article.asp?id=37013
Comparative Legal Analysis on the Legislations Regarding Corruption and Bribery in Turkey
March 5, 2014 by Serap Zuvin Law Offices
This article is a comparative legal analysis, which points out the adaptability of the legislation in Turkey and
the international agreements on corruption and bribery, whereas also points out the differences of the legislation
between Turkey, India and United States of America on the contemplated subject.
https://www.hg.org/article.asp?id=32235
Asia has Worst Defenses Against Bribery and Corruption - Financial Times
Sep 26, 2013 - Asia has the worst defenses against corporate fraud of any region and only ... anti-bribery and
anti-corruption policies in place, half do not make...
https://www.ft.com/content/ed8f38b3-358a-39e7-b3da-5dcf7e007c3f
The Anti-bribery Business
As the enforcement of laws against corporate bribery increases, there are risks that it may go too far
https://www.economist.com/news/business/21650557-enforcement-laws-against-corporate-bribery-increases-
there-are-risks-it-may-go