Four new offences
The Act introduces four new categories of offence:
- offering, promising or giving a bribe to another person;
- requesting, agreeing to receive or accepting a bribe from another person;
- bribing a foreign public official; and
- a corporate offence of failing to prevent bribery.
Key concern for business: the new corporate offence
The corporate offence introduces a new offence for businesses ‘failing to prevent bribery’. A business will commit the offence if an ‘associated person’ performing services on its behalf bribes another person in order to obtain or retain either business or a business advantage for the company. The definition of ‘associated person’ is very broad.
Potential defence: 'adequate procedures'
The only defence available to the company is proving that it had ‘adequate procedures’ in place designed to prevent bribery from being committed by those performing services on its behalf. The government has published guidance on what constitutes 'adequate procedures'.
Jurisdictional reach
The Act has a wide territorial scope. Acts of bribery committed by anyone in the UK or, if overseas, by a British citizen or any other person with a close connection with the UK can be prosecuted. The new corporate offence applies to any UK incorporated entity and any overseas entity that carries on a business or part of a business in the UK.
Penalty
The Act carries a maximum penalty of 10 years imprisonment for all new offences, except the offence relating to commercial organisations, which will carry an unlimited fine..
Key contact
Geoff Nicholas, Partner
Briefings
The UK Bribery Act represents a complete reform of the law on bribery in the UK. It came into force on 1 July 2011.
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