Understanding the UK Bribery Act 2010

Do you think bribery is just an act of taking some financial or other advantage to do some illegal or improper work?

If you feel the same, you need to read this article to learn that the UK government has introduced a broader range of bribery, not limited to those who get financial benefits at public offices.

Which organizations are liable to follow the Bribery Act? All businesses, whether public or private, operating in the UK or originating from the jurisdiction, must follow the Bribery Act and implement it into their business operations to combat corruption and bribery activities.

This article will cover the bribery offenses discussed in the Bribery Act, the penalties businesses can bear if they fail to comply with the act, and what companies should do to comply with the UK Bribery Act.

What was the need for the Bribery Act?

The UK’s efforts to combat corruption and bribery within the country were based on century-old legislation that was ineffective in the already-evolved era. That was why bribery and corruption posed significant challenges to both public and private sectors, ultimately undermining economic development, distorting markets, and eroding trust in institutions.

Therefore, the government had to introduce a comprehensive and clear framework in the form of the Bank Bribery Act to control such activities. The act makes sure that the inadequacy that were in the last laws are addressed.

4 important points of the Act

The act came into force with four key provisions relating to Bribery and corruption. This not only discusses the types of bribery but also highlights the cost of not implementing enough regulations for businesses to combat such crimes

1. Bribing Another Person

The act defines bribery as a person promising financial or any other advantages to an office working in a public or private entity in return for performing a relevant function or activity that is not legal.

2. Being Bribed

Here is another scenario in which the officer asks for money or any other advantage from the client or familiar person and promises to perform relevant functions or activities even if they are improper or illegal.

3. Bribery of Foreigners :

The act strictly prohibits and considers it an offense to offer, promise, or give a financial or other advantage to a foreign public official to influence them in their official capacity to obtain or retain business or a business advantage.

4. Failure of Commercial Organizations to Prevent Bribery:

Organizations must implement compliance efforts to combat bribery and corruption on their premises. However, if an organization is found guilty of an offense related to the bribes of another person with some improper intentions, the business can face hefty penalties.

However, an organization can avoid liability if it can prove that it has adequate procedures to prevent bribery.

Real-Life Case Study highlighting the importance of the Bribery Act for Businesses

Case Study: Sweett Group PLC

Sweett Group PLC is a well-known consulting company in the UK. It has remained in the spotlight for years, and you know why? Because Sweet Group PLC was the first company officially convicted under section 7 of the UK Bribery Act.

The body convicted the company that their subsidiary had made corrupt payments in the Middle East to build a hospital in the United Arab Emirates to get a reward.

After the body’s investigations, Sweet Group PLC pleaded guilty to the charges and was fined £2.25 million, including a £1.4 million fine and an additional £850,000 in confiscation and costs.

How can Businesses comply with the Bribery Act to avoid any penalties?

Though complying with so many regulations simultaneously is a complicated task for any organization, the anti-bribery act requires little effort to avoid financial and reputational damage to your business.

1. Create a Compliance Program:

Any organization starts by creating strategies and policies to combat crimes. Therefore, businesses need to implement an effective anti-bribery compliance program, which could be made by the compliance team, keeping in mind the specific risks an organization may face.

2. Training and Awareness:

Companies often ignore employee training for several reasons. Still, it helps your compliance team stay updated with the latest challenges and any amendments made to the Anti-bribery and Corruption Act by the body.

3. Regular Audits and Reviews:

Compliance programs are not one-time solutions; you have to be active. For this business, you need to conduct regular audits to ensure the effectiveness of anti-bribery measures and make improvements as required.

Should businesses rely solely on the efforts mentioned above, or is there any other way they can do better?

The watchlist screening tool helps businesses screen their employees, clients, and customers, including their transaction and background history, and ultimately prevent the chances of engaging in any sort of bribery act.

AML watcher provides one such solution that not only screens against corruption and bribery but screens the sanctioned people, global watchlist, and PEPs list, which is ultimately beneficial for the organization in making the best decision about the client.