Bribery Act – watered down version but in force on 1st July 2011
Finally, the Bribery Act debacle seems to have moved on to the next stage. The new guidelines offer a more sensible and altogether more proportionate view on this important topic.
It seems that the message from the UK government, broadly speaking, is that if you have a small or medium sized business, save for blatantly criminal attempts at bribery, there is little to worry about. The new rules reinforce that it is big businesses, particularly those who undertake business internationally, who should remain vigilant and concerned. This is especially because, on a worldwide basis, there is clearly a trend towards governments being seen to “clean up” the actions of big business and the potential fines and other sanctions where enforcement action is taken, generally run into the millions of the relevant currency, so there is a lot at stake.
Following on from the above, the UK Ministry of Justice has emphasised in the latest guidance that minimal procedures will be required for small and medium sized businesses who should effectively adopt a common sense approach, whilst still bearing in mind that the Act does apply to them also. Proportionality is the key consideration.
What has not been “watered down” in the new guidelines is the need for all businesses to be vigilant about vicarious liability for employees or agents involved in bribery. In those circumstances the Directors of the business may face a fine or even a prison term.
The revised guidance contains 6 principles for bribery prevention :-
1. Proportionate procedures
2. Top level commitment
3. Risk assessment
4. Due diligence
5. Communication
6. Monitoring and review
