The Bribery Act 2010 has further complicated the compliance landscape for companies who conduct business in the UK. The new law brings the UK to the forefront in global efforts against corruption and bribery. Successfully addressing the Act’s broad implications must become an immediate business priority, as companies and their executives now face the challenge of implementing “adequate procedures” to prevent and detect bribery.
| Unlike the Foreign Corrupt Practices Act (FCPA) in the U.S, the UK Bribery Act: |
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The UK Bribery Act reflects a growing global commitment to combat bribery and corruption. Over the past several years, there have been more frequent and aggressive enforcement of bribery offenses, massive fines and penalties for transgressors, proposed amendments to the U.S. Federal Sentencing Guidelines, and continued pressure by the OECD (Organization for Economic Co-Operation and Development) on signatory countries to enforce anti-bribery laws.
To avoid potential liability and fines, companies should proactively modify their compliance programs to assure compliance with all laws having extra-territorial reach, such as the FCPA and the Bribery Act, while taking into account any laws local to their operations which may apply stricter standards.
Companies should ensure their programs meet the requirements expected to be presented by the Bribery Act’s “adequate procedures” standard, as well as the U.S. Federal Sentencing Guideline’s definition of “an effective compliance program.” Existing best practices, the U.S. Federal Sentencing Guidelines, and the Good Practice Guidance issued by the OECD, provide direction about how this can be achieved.
A well designed and managed compliance program will:
- Reduce the likelihood of bribery and corruption-related incidents
- Reduce the total cost of any incidents that do occur
- Involve a programmatic approach and continuously evolve in response to the changing compliance landscape.
