Getting to grips with bribery laws

Although the definition of what constitutes corruption varies from country to country, the UK government takes a hard line on the issue and in January it was ranked 10th in the Transparency International Corruption Perceptions Index 2016.

Over the past few years, there have been several high-profile investigations into the practices of organisations, from aircraft manufacturers and airlines through to government tourism bodies. If found guilty, there can be serious consequences. An aviation company had to pay a $107 million penalty as part of a deferred prosecution agreement, while two businessmen who pleaded guilty to bribing foreign aviation officials were imprisoned for 18 months.

With Brexit negotiations under way, there has been speculation that the uncertainty will lead to a “business at all costs” mentality. But as temptingas it may be to gain a competitive advantage, the legal, financial and reputational consequences of stepping out of line can be far-reaching.

For more information, contact Aaron Zoanetti, solicitor, commercial at asb law LLP aaron.zoanetti@asb-law.com or 01293 603647

• Undertake a risk assessment to identify high-risk areas.
• Take a top-down approach to anti-corruption.
• Put in place appropriate policies and procedures.
• Ensure staff receive regular training on anti-corruption measures.
• Conduct due diligence (including checks for sanctions and politically exposed persons) on new and existing suppliers and customers.
• Ensure contracts include anticorruption clauses to protect your business from corrupt acts committed by a third party.
• Monitor compliance with anti-corruption measures.

Davidk: Are, for example, Love to Shop gift vouchers seen as bribery or a reward?

Aaron Zoanetti, Solicitor, asb law LLP: Without getting into the technicalities, incentives based on the level of sale of certain product to end-clients would generally not be considered to be a bribe as the sales agent wouldn’t be expected by the end-client to perform impartially - a sales agent can legitimately promote a product over others because the reward from the sale is greater. However, if for example you are employed by a company in procurement and you are offered a personal incentive by a supplier that could lead you to improperly choose that supplier over others, then this would more likely be considered a bribe because you have a duty to act impartially and to achieve the best outcome for your company.