EVERSHEDS COMMENTS ON THE BRIBERY ACT

New laws which could put workers behind bars and hit companies with unlimited fines are passing into law unnoticed by UK businesses. According to research recently conducted by Eversheds LLP, many businesses are in the dark over the new Bribery Act 2010 (which received royal assent in April 2010 and which is expected to come in to force from April 2011), with 60 per cent. of businesses unaware that failing to prevent bribery will be a criminal offence. The Bribery Act introduces general offences of offering or receiving bribes, a specific offence of bribing a foreign public official, and the new corporate offence of failing to prevent bribery. A failure by a business to deal with bribery issues could lead not only to the individual directors facing prison but also the business itself facing a substantial fine.

A Government consultation exercise is proposed to be launched in September 2010 to devise guidance for commercial organisations about the "Adequate Procedures" which they must put in place to prevent bribery being carried out on their behalf. That guidance is to be published in the new year and it will be followed by a three month 'familiarisation period' leading up to the implementation of the Act. In preparation for the Act coming into force, businesses need to review their anti-bribery and corruption programmes to ensure that they will not fall foul of the Act. The very clear message to businesses is that doing nothing is not a sensible option.

So what does this mean for you?

Businesses must ensure they have a robust and “risk based” anti-corruption programme. The board of directors must ultimately be responsible for establishing a culture where corruption is not tolerated and should appoint a named senior officer with responsibility for anti-corruption compliance. The larger the company and the further its global reach, the higher the risk and the greater the need for an integrated programme. This will include having a detailed anti-corruption policy, together with adequate “risk based” training being provided to all relevant staff, as well as suitable and adequate board level training, comprehensive and regular evaluation of the nature and extent of the risks to which a company is exposed and adequate due diligence of third parties.

For further information or advice, please contact Neill Blundell or Paul Worth. Details can be found at www.eversheds.com.