The British Banker's Association (BBA) has issued welcome guidance on compliance with the Bribery Act 2010. The guidance, which has been anticipated for some time now, was published in late December 2011 and provides valuable advice on 'Practical implementation issues for the banking sector'.
The main objective of the guidance is to help banks to develop appropriate policies and actions which will enable them to understand the risks present and to comply with the recent introduction of the Bribery Act 2010. The BBA's publication contains an overview of the Bribery Act itself, it contrasts the position of the US Foreign Corrupt Practices Act (FCPA) and then refers to the key requirements of the Financial Services Authority (FSA). The BBA publication also examines the Ministry of Justice's (MoJ) 'six principles' and the application of the principles to the Banking sector. Additional recommendations are included on gifts, promotional costs and corporate hospitality.
The nature of the Banking sector is such that each bank will have its own risks to consider depending on their customer base and geographical range. Therefore, the guidance is something for banks to consider in the context of their own business needs and does not offer a one-size-fits-all compliance solution. Individual banks should ensure that they take steps to shape their policies and procedures in light of the advice communicated by the BBA.
The BBA has stressed that the guidance is designed to work alongside the MoJ principles, as well as other information from the government, FSA and the Bribery Act -it is not to be considered as a legal framework in itself. Over the course of 2012, the BBA is planning on working on managing wider bribery and corruption dangers. Their future strategy will incorporate court judgements and lessons from the experience of other professions. Their current plan includes addressing the issue of bribery and Politically Exposed Persons (PEPs) among other risks. The impact of the BBA guidance on the Banking Sector's approach to bribery compliance will become evident in the coming months.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.