Bribery Act Update

The Bribery Act will be coming into force on 1st July 2011 and after a long time waiting the government issued their guidance notes on 30th March 2011. At the same time the Serious Fraud Office and Public Prosecutions issued “joint prosecution guidance” on the act. Many Companies will be heaving with a huge sigh of relief to hear that the now customary corporate hospitality that many enjoy is unlikely to fall foul of the Act, provided it is sensible and proportionate and not found to be too lavish.

The guidance itself sets out 6 key principles which are to provide all organisations with a starting point for ensuring that their business are bribery free. The 6 principles as set out in the guidelines are:-

1. Proportionate procedures: - Make sure that any procedures to prevent bribery are proportionate to the bribery risks to that organisation.

2. Top level commitment: - Ensure that those at the top of the organisation are committed to an anti bribery stance and enforce both internally and externally.

3. Risk assessment: - Adopt a risk assessment of all procedures that is proportionate to the organisations size, structure and nature, scale and location of its activities.

4. Due diligence: - Undertake internal and external due diligence procedures which will adequately identify risks to that organisation.

5. Communication: - Make information available both internally and externally so that the organisation can effectively monitor, evaluate and review its bribery prevention procedures. This includes the requirement to train employees where necessary and proportionate.

6. Monitoring and review: - Make sure that the organisation is aware as to how they will monitor and review their anti bribery policies and procedures to ensure that even though the risks that they may face may alter over time, they remain compliant.

With such a short time left before the Bribery Act comes into force it is important that all organisations start to fully assess the risks their organisation is open to and address them at the earliest opportunity, preferably by implementing an appropriate Anti Corruption and Bribery Policy. At the very least, they should ensure that their disciplinary policy, whistle blowing policy and policy on accepting and receiving corporate hospitality and gifts are clear and up to date well ahead of July. Failure to do so may result in severe sanctions including a jail term and or an unlimited fine.