BRIBERY AND KNOW YOUR CLIENT RULES
BRIBERY
The UK Bribery Act 2010 (the Act) came into force on the 1st July 2011. With the potential to affect various industry professionals from builders to brokers, the key points to highlight are:
What is bribery?
What activities are contrary to the Act?
• Defined as a financial or other advantage offered, promised, or given to another party to induce them to perform a function or activity improperly, or to reward them for doing so. This can include gifts, corporate hospitality and client entertainment.
• To make or receive a bribe which applies to both bribery of public officials and other persons. For example, paying a harbour official to get a better mooring slot. • Any type of facilitation payment, which is payment made to a foreign official to influence the timing of a public function. For example, payment to obtain a permit or licence quicker. On summary conviction, up to 12 months imprisonment and a GBP 5,000 fine. On indictment, unlimited fines and up to ten years in prison. For example, in a recent case, a company was fined GBP 2.2 million for corrupt payments to foreign officials to secure contracts abroad.
Who is it applicable to?
MOST DEVELOPED COUNTRIES WILL HAVE THEIR OWN LAWS AND PENALTIES
• Applies to individuals closely associated with the UK, such as ordinary residents, citizens, all businesses operating in the UK, their associated entities (subsidiaries, agents, employees) and all UK registered commercial organisations and partnerships and their associated entities.
IN RELATION TO DEALING WITH BRIBERY AND CORRUPTION
Where is it applicable?
• The Act applies to activities contrary to the Act carried out anywhere in the world.
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