Companies need to take swift action to ensure adequate procedures to prevent and detect bribery.
For many years the US has led the way in investigating corruption through the Foreign and Corrupt Practices Act. The UK has been comparatively slow to update its legislation, however with the introduction of the Bribery Act (the Act) this is about to change.
The Act introduces a new offence if companies fail to prevent bribery by employees, agents or persons connected to their business. The only defence available will be if the company can demonstrate it has, and maintains, adequate procedures to prevent and detect bribery.
Unless a business is a household name, it is tempting to think that the chances of being prosecuted are slim at best and that therefore you can conduct 'business as usual'. This is a high risk strategy. The SFO's policy on self reporting increases the chance that bribery will be reported and should a successful prosecution ensue there is a nasty sting in the tail in the shape of the Proceeds of Crime Act not to mention the Money Laundering Regulations.
Most people would associate the Proceeds of Crime Act with depriving convicted drug dealers of their ill-gotten gains. However it is equally applicable to businesses convicted under the Bribery Act. Conviction for paying a £100,000 bribe to win a £1m contract could result in a confiscation order to the gross value of the contract, and that's on top of any fines imposed as a result of the conviction.
Companies need to act now to ensure they have adequate systems and controls in place if they are going to both prevent bribery by employees and agents and defend themselves against the new corporate offence of failing to prevent bribery.
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