bribery act 2010 seminar slides jun 2011
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The Bribery Act 2010
Applying “Adequate Procedures”
David McIntyre
Head of Business Risk Services (North)
June 2011
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The Bribery Act 2010
• UK law with extra territorial jurisdiction
• Comes into force on 1 July 2011
• Penalties include imprisonment of up to 10 years and unlimited fines
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The offences
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The Guidance
• Guidance for organisations in relation to the new offence and ‘Quick Start’ guidance for smaller businesses have now been issued by the Ministry of Justice– For general application – based around six guiding
principles– Advocates a proportionate response– Corporate hospitality not prohibited by the Act– Suggested procedures not mandatory
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The six guiding principles
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Top level commitment
• Board level commitment
• Communication of the organisation’s anti-bribery stance
• Leadership and involvement in anti-bribery agenda
• A response plan to deal with incidents of potential bribery quickly and effectively
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Risk Assessment
• As part of wider risk management or separately
• Ensure adequate information / due diligence
• Consider the aspects of your business that might place you at risk:– Country risk– Sector risk– Transactional risk– Business opportunity risk– Business partnership risk
• Consider internal factors (culture / methods of working)
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Due diligence
• As part of wider due diligence framework or separately
• Requires sufficient information / expertise
• Informs risk assessment
• Associated persons– Employees– Agents acting on your behalf– Companies performing services on your behalf
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Proportionate procedures
• High level policies providing anti-bribery stance
• Detailed procedures
• Proportionate to risk in each area
• Suggested common policies and procedures
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Communication (including training)
• Enhance awareness and understanding– Internal communications– External communications
• Training– Proportionate to risk– New employees/agents– Existing employees/agents– Ongoing training
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Monitoring and review
• Regular risk assessment
• Regular due diligence
• Regular review of procedures– Adapt for changes in risk– Test effectiveness of policies / procedures
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Corporate Hospitality
• No prescriptive limits
• Can it be justified – – Reasonable and proportionate?– What would a jury think?– A demonstration of the organisation’s services?
• Set a clear policy and procedures
• Ensure adequate information, checks and review– How much is spent, when and by whom– Are names of recipients and other details accurately
recorded– Gifts and hospitality register showing what has been
received
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Useful links
• Bribery Act 2010
www.legislation.gov.uk/ukpga/2010/23/contents
• Ministry of Justice Guidance and Case Studies
www.justice.gov.uk/guidance/docs/bribery-act-2010-guidance.pdf
• Ministry of Justice ‘Quick Start’ Guidance
www.justice.gov.uk/guidance/docs/bribery-act-2010-quick-start-guide.pdf