Understanding the UK Bribery Act 2010 is the first step towards preventing bribery and its consequences. We unpack everything you need to know and ways to prevent bribery in your organisation and elsewhere.
Most people think of a bribe as a person or company paying someone to secure an advantage. While this is broadly true, there are many different types of bribery, and the definition can be easily misinterpreted or misunderstood.
For example, if a business owner treats a potential client to an expensive meal in the hopes of winning them over as a customer, is this classed as a bribe?
The UK Bribery Act 2010 helps answer these questions. It gives a legal definition of bribery, specifies certain types of bribes, and governs what punishments can be handed out. The Act was introduced in 2011 to replace outdated legislation and is so comprehensive that countries worldwide use it to inspire their own anti-corruption laws.
The UK Bribery Act 2010 is an anti-corruption law that applies to individuals and companies. It helps define bribery, who is liable, and what punishments can be imposed.
The British Bribery Act has a broad reach and applies to UK citizens, residents and companies regardless of where the bribery takes place. It also applies to non-UK companies that conduct business in the UK, regardless of where the bribery occurs.
Under the act, bribery occurs when someone is
“offering, promising or giving a financial or other advantage to a person to induce or reward a person to perform a relevant function or activity improperly.”
Bribing another person
The Act makes it illegal to offer, promise or give a financial (or other) advantage to someone in order to influence them to perform their duties improperly. This can be anything from cash to assets or even something less tangible like a promise of future promotion in a job role.
Being bribed
It’s not just the giver of the bribe who is liable. It is also an offence to request, agree to receive, or accept a bribe in exchange for improper performance of one’s duties.
Bribing a foreign public official
This involves offering, promising, or giving a bribe to a foreign official with the intention of influencing them to obtain or retain a business advantage.
Failure to prevent bribery
This is the big one for UK businesses – a company can be held liable if it fails to prevent bribery by someone associated with it (e.g., employees, agents, or subsidiaries). The company’s only defence is if it can prove it had "adequate procedures" in place to prevent bribery.
If you or your company are convicted of breaching UK bribery law, you'll face severe penalties, ranging from unlimited fines to lengthy prison sentences.
The reputational damage of a conviction is also worth considering. You may lose customers and be forced to close. Businesses may also be disbarred from bidding on government contracts or engaging in public-sector projects.
Businesses are at risk of bribery more often than they think. As mentioned, client hospitality could potentially be viewed as bribery – so how do you keep yourself safe?
The important thing is that UK bribery law focuses on the conduct rather than the outcome – so it looks at identifying a corrupt intention meant to encourage someone to do something that they shouldn't usually do.
This means that ordinary corporate gifts and hospitality practices won’t be a problem, provided they are not excessive and go well beyond a reasonable effort to improve client relations or promote your brand.
Unfortunately, this puts business owners in a tricky position where certain acts may come down to subjective ruling. Rather than take any chances, you can create a Gifts and Hospitality register that tracks activity and mitigates the risk of bribery or fraud.
Bribery can sometimes happen even if you've taken steps to prevent it. The only defence for a company under the Bribery Act comes when your business can prove that "adequate procedures" are in place to prevent bribery.
What are these adequate measures? The government has issued six principles that help guide businesses on the path to safer operations.
Now that you have a better understanding of what bribery is and how the act governs it, you can see how important it is to put the government’s “adequate measures” in place in order to prevent bribery from occurring and to defend yourself if required.
Get the anti-bribery training you need to equip yourself and your employees with the knowledge necessary to reduce the risk of bribery. Our straightforward e-learning courses are suitable for all levels, and you can get started by requesting a free trial.
We have created a comprehensive bribery & corruption roadmap to help you navigate the compliance landscape, supported by several financial crime prevention courses in our Compliance Essentials Library.
We also have 100+ free compliance training aids, including assessments, best practice guides, checklists, desk aids, eBooks, games, posters, training presentations and even e-learning modules!
Finally, the SkillcastConnect community provides a unique opportunity to network with other compliance professionals in a vendor-free environment, priority access to our free online learning portal and other exclusive benefits.