 The Bribery Act 2010 - Act now or repent at Her Majesty's pleasure
The Bribery Act 2010 has now received royal assent. This is the largest change in this area of UK law in living memory. After years of lagging behind our international counterparts this legislation demonstrates the UK's increased determination to fight corruption.
The key elements of the act are:
- The creation of a corporate offence: 'failure of commercial organisations to prevent bribery'.
- A statutory defence to this corporate offence if the organisation can demonstrate that it had 'adequate procedures' in place. (Note that the burden of proof is placed firmly on the organisation to demonstrate that this is the case).
- Territorial application: the act covers actions that take place in overseas locations, and all commercial organisations that carry out any part of a business in the UK.
In light of this change in the legal landscape, commercial organisations should review their anti-bribery procedures to ensure that they are adequate. For many organisations it is likely to take a substantial period of time in order to enact fully any necessary changes in culture or procedures.
With increasing co-operation and co-ordination between enforcement agencies in the UK and overseas the risk of detection is rising. The penalties are potentially very heavy: 10 year prison sentences, unlimited fines and debarment from government contracts will be an eye-watering prospect for many.
Now more than ever, the importance of knowing who you do business with and having a reliable understanding of the business environments in which you operate is crucial. PKF's Forensic Services and Business Intelligence team has proven success in identifying the risks and supplying crucial information and insight into individuals and organisations both in the UK and throughout the world.
For more information on this subject, or on any aspect of our forensic services, please contact:
David Dearman, Partner
Telphone: 020 7065 0304
Email: david.dearman@uk.pkf.com
|