The Office of National Statistics reported an estimated 3.5 million fraud offences occurring between April 2022 and March 2023, while a recent Economic Crime Survey revealed that 46% of businesses have encountered more than one incident of fraudulent activity.
Keeping these shocking statistics in mind, it’s all the more important for employers to assess whether current control measures offer sufficient protection for their business. But what is the Bribery Act 2010? The Bribery Act of 2010 is a cornerstone in the fight against corruption, setting stringent guidelines to safeguard integrity and transparency in commercial transactions.
In this article, we’ll explore what the Bribery Act 2010 is, including the various offences it covers and its key principles to help you stay compliant and remain on the right side of the law.
The Bribery Act 2010 is a robust piece of legislation designed to address bribery and corruption in all its forms, domestically and internationally. The Act applies to both individuals and businesses, regardless of size or sector, making compliance essential for all entities operating within the UK jurisdiction.
The Bribery Act 2010 was introduced to strengthen and modernise the UK’s laws on bribery, replacing outdated and patchy legislation.
Before the Act, the existing laws were seen as inadequate for dealing with the complex nature of modern bribery, particularly in international business. The Bribery Act 2010 aimed to create a clear and comprehensive framework for tackling bribery, both at home and abroad. A key driver for the Act was the UK’s commitment to international anti-corruption efforts and a desire to align with international standards. The question ‘why was the Bribery Act 2010 introduced’ is often asked by businesses who want to understand the reason behind the legislation. Essentially, it was designed to promote ethical business practices, increase transparency, and deter bribery and corruption in all its forms.
There are four primary Bribery Act 2010 offences:
Offering, promising, or giving a bribe to induce improper performance of a relevant function or activity.
Soliciting, accepting, or agreeing to receive a bribe in exchange for improper performance of a relevant function or activity.
Offering, promising, or giving a bribe to a foreign public official to influence them in their official capacity.
Under section 7 of the Bribery Act 2010, failing to prevent bribery by its associated persons acting on behalf of the organisation, unless adequate procedures to prevent bribery were in place, is also a criminal offence.
The penalties for breaching the Bribery Act 2010 are severe. For individuals, the penalties can include imprisonment of up to 10 years and/or an unlimited fine.
For organisations, the fine is unlimited. This reflects the seriousness with which bribery offences are viewed. The severity of the fine depends on the specific circumstances of the case.
Absolutely. Having a solid anti-bribery policy isn’t just a recommendation, but a necessity under the Bribery Act 2010. This policy demonstrates your commitment to ethical business practices and outlines clear guidelines and procedures for employees to follow, emphasising zero-tolerance towards bribery and corruption. What’s more, an anti-bribery policy provides a layer of protection for your business, shielding it from potential legal repercussions and reputational damage.
Check out our blogs for further insights on how anti-bribery and corruption can affect you, and learn about what are considered acceptable and unacceptable practices.
In compliance with UK legislation, an anti-bribery policy should include the following details:
To ensure compliance with the Bribery Act 2010, businesses should follow these six principles set out by the Ministry of Justice.
Set up anti-bribery policies and measures that are proportionate to the size, nature, and complexity of your business operations.
This means a small business with primarily domestic operations will have different needs than a large multinational corporation. A key element of proportionality is documenting why you’ve chosen a particular approach. For example, if you decide against a complex due diligence process for low-risk suppliers, explain the reasoning behind that decision. Think about the industry you’re in; some industries are inherently at higher risk for bribery than others. Proportionate procedures should be regularly reviewed to make sure they remain appropriate as the business evolves.
Demonstrate unequivocal support for anti-bribery initiatives from senior management, encouraging a culture of integrity from the top down.
Top-level commitment isn’t just about having a policy; it’s about actively demonstrating that commitment. Senior management should visibly champion anti-bribery efforts, communicate the importance of compliance, and allocate sufficient resources to support these initiatives. This can involve regular communication, visible support for training programs, and leading by example in ethical decision-making.
Conduct regular risk assessments to identify and reduce potential bribery risks within your business and supply chains (if any).
Risk assessments should be tailored to your specific business and consider factors such as the countries you operate in, the industries you work in, the types of transactions you engage in, and the third parties you deal with. The assessment should be documented and regularly updated to reflect changes in the business environment. It’s also crucial to consider both internal and external risks.
Exercise due diligence when engaging with third parties, suppliers, and business partners, making sure they share your commitment to anti-bribery principles.
Due diligence is essential for reducing the risk of bribery by associated persons. This process might involve background checks, reviewing their anti-bribery policies, and including anti-bribery clauses in contracts. The level of due diligence should be proportionate to the risk. For high-risk third parties, you’ll likely require more extensive checks.
Provide comprehensive training to employees at all levels, fostering awareness and understanding of anti-bribery policies and procedures.
Training shouldn’t be a one-off event. Regular refresher training is essential to reinforce the message and keep your employees up-to-date on any changes in legislation or company policy. Training should be tailored to different roles and responsibilities in your organisation. For example, employees in sales or procurement roles may require more in-depth training on dealing with third parties.
Continuously monitor and review your anti-bribery policies to adapt to evolving risks and regulatory requirements effectively.
Monitoring and review are crucial for making sure your anti-bribery measures remain effective. This involves regularly reviewing the policy, assessing the effectiveness of training programs, and monitoring for any red flags that may indicate bribery activity. It’s also important to stay informed about changes in legislation and best practices.
Looking at real-world examples of non-compliance with the UK Bribery Act, these examples can provide valuable insight into the consequences of bribery and corruption. While many cases don’t receive widespread publicity, some high-profile prosecutions highlight the seriousness with which these offences are treated. Here are a couple of examples:
With our tailored PQQ (Pre-Qualification Questionnaire) package, we can help your business deliver and meet compliance requirements.
We hope our blog helped you better understand the Bribery Act 2010 and its main offences. Our anti-bribery and corruption team will offer expert guidance and support to help you implement policies correctly. Plus, we offer suppliers a PQQ template for contractors with our simple supply chain management service.
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