Companies face prosecution for overseas corruption after parliament approves bribery legislation
08 April 2010
Parliament yesterday approved stringent new anti-corruption
legislation which includes a controversial new corporate offence of
failure to prevent bribery. Companies found guilty of
the offence face an unlimited fine.
In the past it has been almost impossible to prosecute companies
for bribery and the UK bribery laws have been sharply criticised
both domestically and abroad as complex, outdated and
inconsistent. The new bribery legislation is set to change
this and companies will need to ensure they have robust procedures
in place to prevent bribery being committed by employees or third
parties providing services on their behalf. There is a real danger
that a company could unwittingly commit the corporate criminal
offence as a result of someone on the ground in another country,
over whom it has little or no control, making an irregular payment.
The only defence would be for the company to show that it had
adequate procedures in place to prevent bribery.
The last few months have seen a number of high profile Serious
Fraud Office (SFO) investigations into companies including Alstom,
BAE Systems and Innospec Ltd, indicating an increase in enforcement
action in this field.
Tony Lewis, bribery and corruption partner at law firm Field
Fisher Waterhouse said: “The SFO is cracking down on overseas
bribery and has made it clear that just having a policy will not be
a sufficient defence. Companies will need to make sure that
policies are tailored and robustly implemented. Staff must be
trained and compliance will need to be monitored. The SFO will be
looking for a clear statement of an anti-corruption culture, fully
and visibly supported at the highest levels.
Organisations will also need to consider anti-corruption
legislation when selecting outside advisers and business partners.
They will need to vet third parties and carry out due diligence to
minimise the risk of being associated with a third party involved
in bribery. They should also consider implementing a
whistle-blowing hotline to enable employees and others to report
suspicions of bribery and corruption.”
For further press information please
contact:
Louise Eckersley, PR Manager,
Field Fisher Waterhouse LLP on +44 (0)20 7861 4120.