It was recently reported in the Independent that the UK Government is considering making amendments to the Bribery Act 2010. This comes after several business leaders have criticised the Act, claiming that it is hindering their ability to export goods out of the UK.
This news has not been welcomed by anti-bribery activists, who claim that any watering down of the 2010 Act would undermine the UK’s credibility. On the other hand, government sources report that their prime motivation for considering making changes to the Bribery Act is to preserve the UK's position as a competitive environment for businesses.
At Lewis Nedas, we are routinely called upon to provide accessible, comprehensive legal advice to clients that are concerned that they may be vulnerable to charges under the Bribery Act. In this blog post, we review the terms of the 2010 Act and point out how it applies to everyday activities in the commercial world.
What exactly is bribery?
The Bribery Act 2010 is the governing piece of legislation for the crime of bribery in the UK. Bribery as a crime is often poorly understood. Essentially, as the Act makes clear, it relates to the providing of an advantage or some kind of benefit that will entice or encourage someone not to do what they are otherwise expected to do.
It is important to understand that the 2010 Act makes the crime of bribery multifaceted, and therefore easier to commit. Bribery not only extends to the provision of some kind of benefit, but also the taking of said benefit. If you take any kind of reward – monetary or otherwise – in exchange for doing something that you would otherwise not have done, you will, by definition, be vulnerable to a charge of bribery. Furthermore, positive cases of taking action in exchange for a benefit are not the only possible instance for bribery to occur. If you take a gift or benefit, and decide not to do something which in normal circumstances you would have done, you may still be vulnerable to a charge for bribery.
How much does the legislation cover?
The reach of the 2010 Act is not to be underestimated. It applies to organisations and individuals, meaning that the employees of a business owe a duty not to engage in any kind of activity that could be perceived as bribery. It is because the Bribery Act is so wide reaching that it is seen to be causing some difficulties for businesses and individuals working in the international commercial world.
The approach taken to bribery is different, depending on the part of the world that you are operating in. Some counties have legislation that is as sophisticated as the UKs, while others have laws that are not as prescriptive in terms of what will or will not be deemed to be bribery. This raises a particularly important point for international organisations that have a base in the UK: if your business is implicated in bribery anywhere else in the world, even though your actions or inaction is not deemed illegal in that particular country, your presence in the UK is likely to make you vulnerable to a charge of bribery in the UK.
What steps need to be taken in order to guard against bribery?
Organisations that have a commercial base in the UK are obliged to implement a series of policies and procedures that are designed to safeguard against potential instances of bribery. It is in a business’s interests to make their anti-bribery framework as comprehensive as possible, detailing how matters are to be handled in a variety of circumstances including:
- What stance the organisation takes in respect of accepting gifts or forms of hospitality;
- The steps that staff are encouraged to take in order to reduce the likelihood of their becoming embroiled in suspected instances of bribery; and,
- What procedures should be followed when setting up commercial relationships with other organisations in different parts of the world.
How is bribery regulated in the UK?
The responsibility for policing bribery in the UK lies with the Serious Fraud Office (SFO). This body tends to work as part of a framework involving a host of regulatory agencies, including the police, in order to enforce the UK’s anti-bribery legislation.
It should be pointed out that prosecution for bribery is a challenge for regulatory bodies. They must be able to amass a considerable amount of evidence that will be able to demonstrate a direct link between some kind of action or inaction and a corresponding gift.
However, it is also important to understand that while the evidential burden is high, a successful prosecution under the anti-bribery legislation can result in a significant penalty: organisations that are implicated can be issued with an unlimited fine, and individuals may find themselves facing a prison sentence of up to 10 years.
The UK’s legal regime governing bribery is complicated. Not only is the law difficult to understand, the situations that can be deemed to demonstrate some kind of illegal activity are too numerous to account for. If you are concerned that you or your business is vulnerable to a charge for bribery, or have already been approached on that very point, it is vital that your case is handled by lawyers that understand the gravity of the situation.
How can Lewis Nedas help?
Lewis Nedas are a leading city firm with an enviable reputation for providing effective legal advice to complicated situations. Our team have experience of some of the most complicated cases concerning bribery and financial crime, allowing us to give our clients access to tenacious and highly knowledgable legal advisors. We have been actively involved in this field for many years, and take pride in offering our clients a comprehensive service: we will represent your interested in all discussions with regulatory bodies that are required; provide legal advice that is specific to your circumstances and interests; and, if the need should arise, protect your interests in any litigation. Contact our team now to find out how we can help you.
