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We've finally seen the long-awaited arrival of the UK Government's revised guidance on the Bribery Act 2010 with confirmation that the Act will now be in force from 1 July 2011.
 
So what impact will this Act have for UK businesses operating elsewhere in the world and for businesses from outside the UK which carry out some element of business in the UK?
 
A company which is incorporated anywhere outside of the UK, but which simply carries on any part of its business in the UK, can commit the new corporate offence under this Act.  The bribe that triggers this offence can also happen anywhere in the world, not just within the UK, and that international business could still be prosecuted in the UK.
 
A company registered in the UK or in the case of a director, a British citizen or UK resident, can still commit an offence under this Act despite the actual acts of bribery taking place entirely outside the UK.  Clearly the international reach of this UK legislation will impact on all those global businesses trading with and in the UK as well as UK businesses operating around the world.
 
So the treatment of overseas activities as 'out of sight, out of mind' will no longer wash if your business or that of your clients isn't going to be unduly exposed from the application of the Bribery Act 2010 by the UK authorities.
 
To re-cap, the Bribery Act 2010 creates four offences:
 
     - Bribing another person;
     - Receiving a bribe;
     - Bribing a foreign public official; and
     - The new 'corporate offence' of failing to prevent bribery taking place.
 
A defence to the 'corporate offence' will be for an organisation to show it had 'adequate procedures' in place designed to prevent people associated with it from being involved in acts of bribery.  Guidance on what constitutes 'adequate procedures' was issued on 30 March 2011 in time for the Act coming into force on 1 July 2011.
 
The guidance suggests six key principles for businesses to follow to try to determine what their 'adequate procedures' should be depending on the organisation's areas of exposure and risk:
 
     - Proportionate procedures
     - Top-level commitment
     - Risk assessment
     - Due diligence
     - Communication (including training)
     - Monitoring and review
 
For more details on the new guidance that's been issued, the seminars that Cobbetts will be offering, and our recommended three-stage approach to compliance with the Bribery Act 2010, please visit our website at www.cobbetts.com or contact Emma Roe at emma.roe@cobbetts.com.

If you would like further advice on general issues involving English law, please contact Andrew Leach at andrew.leach@cobbetts.com.

Copyright Cobbetts 2011 - All rights reserved - April 2011