Major UK business reform in new Bribery Act

A solicitor's view on the new Bribery Act for 2010 and the implications for businesses across the UK

Bribery and corruption affect us all, regardless of our position or seniority in business, therefore making it imperative that the implications are thoroughly understood by everyone in the business environment – including the UK ICT channel and its business partners.

The new Bribery Act reforms outdated anti-corruption laws and introduces new general and specific offences.

The aim of this legislation is to create transparency in domestic and international business to fight corruption and make business fair for all. The Act impacts on our daily working lives and affects everyone we conduct business with, whether here in the UK or elsewhere in the world.

The new Act focuses on four principal offences:
* bribing another person;
* being bribed;
* bribing a foreign public official; and
* failure of commercial organisations to prevent bribery.

Under this legislation a simple and innocent corporate hospitality event may fall foul of the rules, where it can be shown that the aim is to gain a business advantage with the intent to cloud the representatives’ duties of good faith, trust and impartiality – which have been placed in him or her by the employer.

All businesses affected
A new corporate offence of failing to prevent bribery now affects all UK registered and non-UK registered companies which conduct business here.

Therefore a director or company officer may be routinely going about his or her business, only to face criminal proceedings where an employee or agent is involved in bribery whether in the UK or abroad.

Company officers liable
Furthermore, the individual who engages in bribery does not have to be convicted for the company officers to be found liable, and thus prosecuted.

If you, your employee or agent acting in the course of business engage in any form of bribery, an offence has been committed, and can be punished by up to 10 years imprisonment and an unlimited fine. This is dependent on whether an individual or company is prosecuted.

Where the bribery has been by a corporate body, a defence is available where it can be shown that adequate procedures were put in to place, such as anti-bribery policies and controls to mitigate any possible risk of non-compliance -- hence minimising the chances of anyone associated with the company engaging in any form of bribery.

No way of escape
This also shows the Courts that the company did all it could to prevent any potential bribery. Where sufficient procedures are not implemented and a company representative engages in bribery, no avenues will be available to escape conviction.

The Act in effect places greater responsibility on all businesses to ensure those with whom business is conducted or those instructed to conduct any business related tasks are thoroughly verified in the UK and abroad.

Any of you who wish to find out some further information on this issue is welcome to contact either myself or Mark Jones on 0121 248 4000.

A short biography
I have chosen to devote my professional efforts to complex fraud and carousel fraud cases. I am currently working on multi-million pound fraud cases which include: money laundering, credit card fraud, identity fraud, internet fraud, multi-jurisdictional conspiracies and HMRC prosecutions involving tax evasion and VAT fraud on a large scale.
I have also represented clients being prosecuted by HM Revenue and Customs, the Crown Prosecution Service, Local Authority prosecutions and the Serious Fraud Office.

Navjit Ubhi is a criminal litigation specialist at Birmingham-based Dass Solicitors