Law Commission of India 258th Report

GOVERNMENT OF INDIA
LAW COMMISSION OF INDIA
Report No.258
Prevention of
Bribery of Foreign Public Officials and
Officials of Public International
OrganisationsA Study and Proposed
Amendments
August 2015
D.O. No.6(3)/286/2015-LC(LS)
27 August, 2015
Dear Shri Sadananda Gowda ji,

The Prevention of Bribery of Foreign Public Officials and Officials of
Public International Organizations Bill, covering requirements of Article 6
of the United Nations Convention Against Corruption, was introduced in
the 15th Lok Sabha and was referred to the Department Related
Parliamentary Standing Committee on Personnel, Public Grievances, Law
& Justice. On expiry of the term of the 15th Lok Sabha, the Bill lapsed and
now, the Department of Personnel and Training proposes to introduce a
fresh Bill. On the advice of the Prime Ministers Office, the proposed Bill
has been referred to Law Commission of India in July this year, to submit
its views / recommendations.
The Commission undertook extensive deliberations, discussions
and in-depth study of the draft bill and the issues relating to it to give shape
to its Report No.258 titled Prevention of Bribery of Foreign Public
Officials and Officials of Public International Organizations A Study
and Proposed Amendments, which is enclosed herewith for
consideration by the Government.
With warm regards,
Yours sincerely,
Sd/[Ajit Prakash Shah]
Shri D.V. Sadananda Gowda
Honble Minister for Law and Justice
Government of India
Shastri Bhawan
New Delhi
ii
Report No.258
Prevention of
Bribery of Foreign Public Officials and
OrganisationsA Study and Proposed
Amendments
Table of Contents
Chapt
ers
I
II
III
Title
Pages
INTRODUCTION
THE SCOPE AND APPLICATION
OF THE UNITED NATIONS
CONVENTION
AGAINST
CORRUPTION
BRIBERY LAWS IN OTHER
JURISDICTIONS
1-5
6-17
18-39
A.
B.
C.
D.
E.
Australia
Austria
Canada
El Salvador
Malaysia
18-20
20-22
22-24
24-26
26-28
F.
Republic of Korea (South Korea)
29-30
G.
H.
I.
J.
IV
South Africa
Switzerland
United States
United Kingdom
CRITICAL ANALYSIS OF THE
PREVENTION OF BRIBERY OF
FOREIGN PUBLIC OFFICIALS
AND OFFICIALS OF PUBLIC
INTERNATIONAL
ORGANISATIONS BILL, 2015
30-32
32-33
33-36
36-39
40-72
iii
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
Q.
R.
S.
T.
U.
V.
W.
X.
Clause by - Clause Analysis of

the Prevention of Bribery of
Foreign Public Officials and
Organisations Bill, 2015
Preamble
Clause 1
Clause 2
Clause 3
Clause 4
Clause 5
Clause 6
Clause 7
Clause 8
Clause 9
Clause 10
Clause 11
Clause 12
Clause 13
Clause 14
Clause 15
Clause 16
Clause 17
Clause 18
Clause 19
Clause 20
Clause 21
Clause 22
Schedule
Annexure
42
42-43
43-45
45-49
49-51
51-58
59
59-60
60-61
61-62
62-63
63-65
65-66
66-67
67
67
67
67
68
68-69
69
69-70
70
70
70-72
73-86
iv
CHAPTER I
INTRODUCTION
1.1
Corruption as an offence connotes the abuse
of public office for private gain. Although actions that
further corruption are condemned universally, nations
have lacked consensus on the meaning and scope of
corrupt conduct. To resolve this, the United Nations
Convention Against Corruption, 2003 (UNCAC) was
introduced to bring about clarity on the criminalisation
of corrupt conduct that had a comparable impact for all
nations. As of today, 176 countries have signed and
ratified the UNCAC and pledged to incorporate its
provisions into their domestic law. India is one such
country.
1.2
Under Article 16 of the UNCAC, States Parties
are required to penalise the offer and acceptance of an
undue advantage to, and by, a foreign public official or
an official of a public international organisation for acts
and omissions that are contrary to his official duties.
Currently India does not have domestic law in
pursuance of Article 16. The Prevention of Corruption
Act, 1988 (PCA) penalises the acceptance of bribes by
domestic public officials, while the Prevention of Money
Laundering Act, 2002 (PMLA) criminalises the illegal
flow of money through the attachment and confiscation
of property. Accordingly, a Group of Ministers felt it
necessary to enact a law on foreign bribery in order to
comply with requirements of Article 16 of the UNCAC.
Pursuant to this, The Prevention of Bribery of Foreign
Public Officials and Officials of Public International
Organisations Bill, 2011 (the 2011 Bill) was
introduced in the Lok Sabha on 25th March 2011.
Under the 2011 Bill, the offer and acceptance of an
undue advantage by a foreign public official or an official
1
of a public international organisation was specifically

penalised. Thereafter on 1st April 2011, the Lok Sabha
referred
the
Bill
to
the
Department-Related
Parliamentary Standing Committee on Personnel,
Public Grievance, Law and Justice (Standing
Committee) for its examination and report.
1.3
On 29th March 2012 the Standing
Committee presented its fiftieth Report on the 2011
Bill.1 The Report analysed the provisions of the 2011
Bill and made several recommendations for its
improvement. Consequently, a proposal was moved for
giving effect to the recommendations of the Standing
Committee which was then approved by the Cabinet on
17th August, 2012. Owing to various reasons, however,
the 2011 Bill could not be passed.
1.4
In the meantime, the Parliament also
amended the PMLA in 2012 in order to make changes
to the structure of its Schedule that contained
predicated offences. This necessitated the need to
amend the 2011 Bill since its provisions made
references to the Schedule of the PMLA. Having taken
note of this, the Cabinet gave its approval to a set of
amendments to the 2011 Bill on 18th March 2013.
Thereafter, a consolidated notice that discussed the
recommendations of the Standing Committee and the
amendments arising out of the amendment of the PMLA
was sent to the Lok Sabha for its consideration on 4th
April 2013. However due to various reasons, the 2011
Bill could not be taken up for consideration in
subsequent sessions of the Parliament and eventually
lapsed with the dissolution of the 15th Lok Sabha.
1
Department Related Parliamentary Standing Committee on Personnel, Public Grievances,

Law and Justice, Fiftieth Report on The Prevention of Bribery of Foreign Public Officials and
Officials
of
Public
International
Organisations
Bill,
2011,
available
at
<http://www.prsindia.org/uploads/media/Bribery/SCR%20Prevention%20of%20Bribery%20Bill
.pdf>, last visited on 4th August, 2015.
1.5
A new proposal has now been made to reintroduce the 2011 Bill with certain suggested
amendments and recommendations as the Prevention
of Bribery of Foreign Public Officials and Officials of
Public International Organisations Bill, 2015 (the 2015
Bill). During the examination of this proposal, a
suggestion was received from the Minister of Law to
consider including exceptions (defences) into the 2011
Bill in line with international experience. In this context
it was noted that in the latest draft of the 2011 Bill there
existed no exceptions to the offence of foreign bribery.
The laws on foreign bribery in the UK and the USA
however provided for such exceptions. Accordingly, it
was proposed that similar exceptions/defences to the
offence of foreign bribery must also be introduced under
Clause 4 of the 2015 Bill. In this context, as per a letter
dated 14th July 2015 from the Additional Secretary, the
Minister for Law and Justice, Government of India, the
Department of Personnel and Training now proposes to
introduce the 2015 Bill in the next session of the
Parliament to demonstrate Indias commitment towards
the implementation of its obligations under the UNCAC.
The following defences have been proposed to be
included under clause 4 of the 2015 Bill - (a) local law
defence, (b) reasonable expenses directly related to the
promotion, demonstration, or explanation of products
or services or the execution or performance of a
contract and (c) defence of adequate safeguards.
1.6
The Ministry of Law and Justice has
requested the 20th Law Commission of India (the
Commission) to give its views and recommendations on
the text of the 2015 Bill. Consequently, the Commission
under the Chairmanship of Justice (Retd.) A.P. Shah
has decided to undertake the present study titled
Prevention of Bribery of Foreign Public Officials and
3
Officials of Public International OrganisationsA

Study and Proposed Amendments to review the
provisions of the 2015 Bill and recommend appropriate
amendments.
1.7
In the Report, the Commission proposes to
undertake an analytical study of municipal,
comparative and international law provisions pertaining
to bribery of foreign public officials and officials of public
international organisations. This is undertaken with a
view to recommend amendments to the 2015 Bill
thereby ensuring Indias compliance with Article 16 of
the UNCAC. Accordingly this report is split into five
Chapters. After the introduction (Chapter 1), Chapter 2
discusses the object and purpose of the UNCAC,
specifically the drafting intent underlying Article 16.
Other articles relevant to the offences contained under
Article 16 are also analysed. Chapter 3 examines
bribery legislations in other jurisdictions that are States
Parties to the UNCAC. A cross-section of such countries
is selected to demonstrate the various approaches taken
to secure compliance. Chapter 4 contains a summary of
the provisions of the 2015 Bill and a critical analysis of
the same. Chapter 5 then makes recommendations on
how the 2015 Bill ought to be amended in order to
secure Indias compliance with Article 16 of UNCAC.
1.8
In order to prepare this Report, the
Commission formed a sub-committee comprising the
Chairman, Justice (Retd.) Ajit Prakash Shah, Mr.
Sidharth Luthra (Senior Advocate), Mr. Siddharth
Aggarwal (Advocate), Dr. Arghya Sengupta (Vidhi Centre
for Legal Policy) and Ms Sumathi Chandrashekaran
(Consultant, Law Commission). Ms. Ritwika Sharma,
Ms. Yashaswini Mittal (advocates) and Mr. Rahul Bajaj
(law student) provided research assistance.
4
1.9
Thereafter, upon extensive deliberations,
discussions and in-depth study, the Commission has
given shape to the present Report.
CHAPTER II
THE SCOPE AND APPLICATION OF THE UNITED
NATIONS CONVENTION AGAINST CORRUPTION
2.1
The
heightened
consciousness
across
nations of the growing and indiscriminate threat of
corruption necessitated an international convention to
tackle it.2 Negotiations for such a convention started in
the first quarter of 2002 and were conducted over the
course of seven negotiating sessions, between January
21 2002 and October 1 2003.3 The UNCAC was finally
adopted by the General Assembly in its resolution 58/4
of 31st October 2003 and entered into force on 14th
December 2005. 4 In subsequent years, 176 nations
signed and ratified the UNCAC in order to tackle
corruption within their territory on the basis of a set of
uniform rules.5
2.2
According to Article 1 of the UNCAC, the
main objectives of enacting an international treaty
against corruption include the promotion and
strengthening of measures to prevent and combat
corruption, promotion and facilitation of international
cooperation and technical assistance in the fight against
corruption, and promotion of integrity, accountability
and proper management of public affairs and public
property. The key measures for tackling corruption as
enumerated under the UNCAC include preventive
Travaux Prparatoires of the negotiations for the elaboration of the United Nations
Convention Against Corruption, United Nations Office on Drugs And Crime (2010); see also
Background of the United Nations Convention against Corruption, website of the United
Nations
Office
on
Drugs
and
Crime,
available
at
<https://www.unodc.org/unodc/en/treaties/CAC/>, last visited on 4th August, 2015.
3
Ibid.
Ibid.
Ibid.
measures, criminalisation of conduct, international

cooperation, and asset recovery. The States Parties to
the UNCAC have also established a mechanism to
review its implementation through a peer review process
that promotes international cooperation and the
sharing of good practices.6
2.3
While there exist a wide array of opinions on
what constitutes public corruption, the act of bribery is
considered to be the most identified form of corruption
that constitutes a penal offence in a large number of
jurisdictions.7 The offence of bribery or the use of undue
influence have not been specifically defined in the text
of the UNCAC and are left to individual formulations
under the domestic laws of States Parties.8 Nonetheless,
the definitional clauses under Article 2 of the UNCAC
serve as an important guide in interpreting Articles 15
and 16 of the Convention, which call upon States
Parties to criminalise the offer and acceptance of
bribery. The supply side of bribery concerns the act of
offering a bribe (active bribery), while the demand side
refers to the acceptance or solicitation of a bribe (passive
bribery).9 Under the UNCAC, the States Parties have an
obligation to criminalise active and passive bribery of its
national public officials under Article 15 and that of
foreign public officials and officials of public
6
United Nations Office on Drugs and Crime, Mechanism for the Review of Implementation of
the United Nations Convention Against CorruptionBasic Documents (2011).
7
Ophelie Brunelle-Quraishi, Assessing The Relevancy And Efficacy Of The United Nations
Convention Against Corruption: A Comparative Analysis, 2 Notre Dame J. Int'l & Comp. L. 101
(2011-2012); See also Michael Kubiciel, Core Criminal Law Provisions in the United Nations
Convention Against Corruption, 9 Int'l Crim. L. Rev. 139 (2009).
8
Division for Treaty Affairs United Nations Office on Drugs and Crime, Legislative Guide for
the implementation of the United Nations Convention Against Corruption (Second revised
edition, 2012) (Legislative Guide on the UNCAC).
9
Ophelie Brunelle-Quraishi (n 7).
international organisations under Article 16. Thus the

definitions of a public official, a foreign public official
and an official of a public international organisation
under Article 2 of the UNCAC are relevant in construing
the penal provisions under Article 16 of the UNCAC.
2.4
The UNCAC defines a public official as any
person who either (i) holds a legislative, executive,
administrative or judicial office of a State Party, whether
appointed or elected, whether permanent or temporary,
whether paid or unpaid, irrespective of that persons
seniority; (ii) performs a public function, including for a
public agency or public enterprise, or provides a public
service, as defined in the domestic law of the State Party
and as applied in the pertinent area of law of that State
Party; or (iii) any other person as defined as a public
official in the domestic law of a State Party.10 A foreign
public official is defined as any person holding a
legislative, executive, administrative or judicial office of
a foreign country, whether appointed or elected; and/or
any person exercising a public function for a foreign
country, including for a public agency or public
enterprise, while an official of a public international
organisation is defined as an international civil servant
or any person who is authorised by such an
organisation to act on behalf of that organisation. 11
States Parties can opt for broader or more inclusive
definitions than the minimum required by Article 2.12
2.5 Article 15 of the UNCAC on Bribery of national
public officials states that:
10
Legislative Guide on the UNCAC (n 8).
11
12
Each State Party shall adopt such legislative

and other measures as may be necessary to
establish as criminal offences, when
committed intentionally:
(a) The promise, offering or giving, to a public
official, directly or indirectly, of an undue
advantage, for the official himself or herself or
another person or entity, in order that the
official act or refrain from acting in the exercise
of his or her official duties;
(b) The solicitation or acceptance by a public
official, directly or indirectly, of an undue
advantage, for the official himself or herself or
another person or entity, in order that the
official act or refrain from acting in the exercise
of his or her official duties.
2.6
Therefore, as per the text of Article 15, States
Parties are required to penalise active and passive
bribery of their national public officials through
legislative or other measures in order to comply with
their obligations under the UNCAC. The distinction
between the active and passive sides of the offence
allows for the prosecution of corrupt conduct more
effectively and is intended to introduce a stronger
dissuasive effect.13 The offences under Article 15 cover
all instances of bribery that are either tangible or
intangible, pecuniary or non-pecuniary.14
2.7
Article 16 on Bribery of foreign public
officials and officials of public international
organisations states that:
1. Each State Party shall adopt such legislative
and other measures as may be necessary to
13
Michael Kubiciel (n 7).
14
establish as a criminal offence, when

committed intentionally, the promise, offering
or giving to a foreign public official or an official
of a public international organization, directly
or indirectly, of an undue advantage, for the
official himself or herself or another person or
entity, in order that the official act or refrain
from acting in the exercise of his or her official
duties, in order to obtain or retain business or
other undue advantage in relation to the
conduct of international business.
2. Each State Party shall consider adopting such
legislative and other measures as may be
necessary to establish as a criminal offence,
when committed intentionally, the solicitation
or acceptance by a foreign public official or an
official of a public international organization,
directly or indirectly, of an undue advantage,
for the official himself or herself or another
person or entity, in order that the official act or
refrain from acting in the exercise of his or her
official duties.
2.8
As evidenced by the text above, paragraph 1
of Article 16 mirrors clause (a) of Article 15, wherein
States Parties are required to criminalise the active
bribery of foreign public officials and officials of public
international organisations. 15 However, contrary to
Article 15, the scope of Article 16 only extends to those
acts of bribery that take place during international
business transactions, including in the context of
international aid. 16 Further in distinction to the
corresponding provision under Article 15, paragraph 2
15
Legislative Guide on the UNCAC (n 8); See also Travaux Prparatoires (n 2).
16
Ibid.
10
of Article 16 only insists upon States Parties to consider

criminalising the solicitation or acceptance of bribes by
international organisations. 17 As per the travaux
prparatoires of the UNCAC, paragraph 2 under Article
16 was formulated in this manner not because any
delegation condoned or was prepared to tolerate the
solicitation or acceptance of bribes by foreign public
officials or officials of public international organisations
but was rather due to the fact that the conduct under
paragraph 2 was already covered in essence under
Article 15, which called upon States Parties to
criminalise the solicitation and acceptance of bribes by
their own officials.18 As a result, the obligation to pass
a law pursuant to paragraph 2 of Article 16 is not a
mandatory requirement under the UNCAC but rather a
directory provision that requires consideration by States
Parties. However in the event a State Party chooses not
to criminalise passive bribery under Paragraph 2, it is
encouraged to consider providing assistance and
cooperation with respect to the investigation and
prosecution of the offence by another State Party that
has criminalised it in accordance with the UNCAC.19 In
this regard, insofar as their laws permit, States Parties
are encouraged to avoid allowing technicalities (e.g.,
lack of dual criminality20) get in the way of exchanging
information with another State that is attempting to
prosecute a corrupt official under its laws, which are
compliant with the UNCAC.21 It is pertinent to mention
17
Travaux Prparatoires (n 2).
18
19
20
Under the principle of dual criminality, an accused can only be extradited if the alleged
criminal conduct in question is considered criminal under the laws of both the surrendering
and requesting States.
21
11
that immunities enjoyed by foreign public officials and

officials of public international organisations under
international law are not affected by the provisions of
Article 16.22 In fact as indicated in the Legislative Guide
to the UNCAC, public international organisations are
encouraged to waive such immunities in appropriate
cases.23
2.9
The understanding of Article 16 is incomplete
without reference to certain other Articles of the
UNCAC. Specifically, Article 42 of the UNCAC which
requires States Parties to exercise jurisdiction over
offences that are (a) committed in their territory; or (b)
committed on board a vessel that is flying their flag or
an aircraft that is registered under its laws at the time
of the commission of the offence. Subject to Article 4,
States Parties are also encouraged under Article 42 to
consider establishing jurisdiction over offences that are
(a) committed against its nationals; (b) committed by its
national or by a stateless person who has his or her
habitual residence in its territory; (c) established in
accordance with Article 23 of this Convention (that
deals with money laundering and proceeds of crime) and
committed outside its territory but has implications
within its territory; or (d) committed against itself, as a
State. This provision therefore attempts to curb transnational corruption and plug key jurisdictional gaps
that enable fugitives to find safe havens to evade the
process of law. 24 However, as noted previously,
paragraph 2 of Article 42 is specifically contingent upon
the principles underlying Article 4 (Protection of
sovereignty) of the UNCAC, which states that:
22
23
24
12
1. States Parties shall carry out their obligations

under this Convention in a manner consistent
with the principles of sovereign equality and
territorial integrity of States and that of nonintervention in the domestic affairs of other
States.
2. Nothing in this Convention shall entitle a State
Party to undertake in the territory of another
State the exercise of jurisdiction and
performance of functions that are reserved
exclusively for the authorities of that other
State by its domestic law.
2.10.
Therefore, while extending the application of
domestic laws under Article 42 to international borders,
States Parties need to keep in mind the aforementioned
principles of territorial integrity and sovereign equality
under Article 4. A violation of any of these principles
would not only violate the UNCAC but also the UN
Charter considering that both principles are based on
Article 2 of the Charter.25 Consequently, Articles 4 and
42 have to be read in conjunction while interpreting the
scope of application of any law under paragraph 1 and
2 of Article 16 in order to ensure compliance with all
provisions of the UNCAC.
2.11
Articles 26 (Liability of legal persons), 27
(Participation and attempt), 28 (Knowledge, intent and
purpose as elements of an offence), 29 (Statute of
limitations) and 30 (Prosecution, adjudication and
sanctions) contain procedural and substantive elements
of establishing and penalising an offence under the
UNCAC. 26 Recourse to these provisions is also relevant
25
26
13
in the interpretation for effective prosecution under

Article 16. Specifically, Article 26 of the UNCAC codifies
the liability for legal entities (for e.g. companies) that is
consistent with the legal principles under the domestic
law of States. The application of this liability is without
prejudice to the criminal liability applicable to natural
persons.27 It extends to criminal, civil or administrative
penalties. 28 Article 27 calls upon States Parties to
criminalise not only the conduct but also the actions
undertaken in furtherance of such conduct (i.e. aiding
and abetting) under the UNCAC. Under Article 28 of the
UNCAC, the elements of an offence, namely knowledge,
intent and purpose must be established in a manner
that takes into account inferences from the objective
factual circumstances as well. Under Article 29, States
Parties are also required to put in place long statutes of
limitation for the offences established in accordance
with the UNCAC. Finally, Article 30 in essence lays
down the framework for prosecution, punishment and
reintegration of convicted persons back into society.
Some of the key issues covered include procedural
safeguards, immunities and the extent of punishment.29
Paragraph 9 of Article 30 is specifically relevant in this
context as it permits States Parties to apply legal
defences or other legal principles controlling the
lawfulness of conduct as codified under their domestic
law. Therefore, defences and exceptions to the offence of
foreign bribery under domestic legislation flow from this
provision.
2.12
The provisions under Chapter IV on
International Cooperation also provide assistance to
27
28
29
14
States Parties in establishing contact with one another

for the purpose of information exchange, mutual
assistance and such other measures that endeavour to
tackle trans-national bribery under Article 16 through
collaborative efforts. In this context, Article 44 on
Extradition is of particular significance since it
discusses the scope, procedure and conditions that
operationalise extradition under the UNCAC. In
summary, the key provisions under Article 44 require
States Parties to (1) establish extraditable offences in
accordance with the UNCAC, provided the requirement
of dual criminality is fulfilled; (2) consider granting
extradition, where their domestic law permits, for
offences under the Convention even without dual
criminality; (3) consider applying Article 44 in respect
several separate offences, where at least one of the
offences is extraditable under Article 44 and some of
those offences which are not extraditable by reason of
their period of imprisonment but are related to offences
established in accordance with the UNCAC; (4) not
consider corruption offences under the UNCAC as
political offences, in instances where such States
Parties use the Convention as a basis for extradition; (5)
conclude treaties on extradition with other States
Parties, if the UNCAC does not constitute a legal basis
for the purpose of extradition; (6) consider expediting
extradition procedures and simplifying evidentiary
requirements relating to corruption offences under the
Convention; and (7) ensure fair treatment for persons
facing extradition proceedings under article 44. In the
context of a refusal of an extradition request under
Article 44, States Parties are also required to (1) submit
the case for domestic prosecution, ensure that the
decision to prosecute and any subsequent proceedings
are conducted with the required diligence and cooperate
with the requesting State Party, if the extradition
request is denied on the ground that the person is
15
a national; (2) consider enforcing sentences imposed

under the domestic law of the requesting State, in
instances where the extradition is denied for
enforcement of sentences on grounds of nationality; and
(3) consult, where appropriate, the requesting State
Party in order to provide it with the opportunity to
present information and views on the matter, prior
to the refusal of an extradition request.
2.13
India signed the UNCAC in 2005 and
subsequently ratified it 2011. However, at the time of
ratification, India also declared, by way of a Notification,
that international cooperation for mutual legal
assistance under Articles 45 and 46 of the Convention
shall be afforded through applicable bilateral
Agreements, and in cases where a bilateral agreement
does not cover the mutual legal assistance sought by
the requesting State, it shall be provided under the
Convention on reciprocal basis. By signing and
ratifying the UNCAC, India has pledged to uphold its
obligations under the Convention through the
enactment of various laws on corruption. 30 In this
regard, Article 253 of the Constitution of India31 vests
the Parliament of India with the requisite competence to
enact laws in order to operationalise its obligations
under the UNCAC. Further, Article 51, a directive
principle, lists Indias obligation to promote
international peace and endeavours to uphold its
international obligations and commitments.
30
For
more
details
on
the
list
of
signatories,
please
<https://treaties.un.org/doc/publication/mtdsg/volume%20ii/chapter%20xviii/xviii14.en.pdf>, last visited on 8th August, 2015.
see
31
Article 51 of the Directive Principles on State Policy under Part IV of the Constitution of
India; Article 253 under Part XI of the Constitution, contains a non-obstante clause that vests
the Parliament with the power to make laws for implementing Indias international
obligations.
16
2.14
Compliance with Article 16 and penalising
international organisations is the rationale for the
present Bill. While giving shape to such a Bill, three key
questions need to be considered: first, will the Bill only
penalise offences contained in Article 16 (1) which is
mandatory, or also offences contained in Article 16(2),
which is directory? Second, to what extent will the Bill
be extra-territorial in operation thereby necessitating
co-operation with foreign countries? And third, what
legal defences or other legal principles controlling the
lawfulness of conduct should be codified under the Bill?
In order to understand various approaches taken to
answering these questions as well as to develop a
comparative perspective in this regard, the relevant laws
of 10 selected jurisdictions are analysed briefly in the
next Chapter.
17
CHAPTER III
BRIBERY LAWS IN OTHER JURISDICTIONS
3.1
Several jurisdictions have enacted domestic
legislations in pursuance of the UNCAC. The application
of these legislations extends to national public officials,
citizens, foreign citizens and in limited number of
circumstances, to foreign public officials and officials of
public international organisations. While a number of
countries have enacted new comprehensive legislations
covering corruption of national and foreign public
officials as well as private corruption, others have
incorporated these offences into existing laws. Most
countries have not enacted law pursuant to paragraph
2 of Article 16 of the UNCAC, which is a directory
provision. Bribery laws in 10 jurisdictions are discussed
below for a better understanding of the scope of Article
16 of the UNCAC. Countries have been chosen in a
manner that provides a representative sample major
common law jurisdictions, sub-continental nations, and
other jurisdictions with notable approaches towards
compliance with Article 16 for which authoritative
country reports are available.
A. Australia32
3.2.1
The UNCAC was signed by Australia in 2003
and subsequently ratified in 2005. Australia has a
federal system of governance with three layers of
government: federal, state and local. The agencies
involved in tackling corruption in Australia include the
Australian Commission for Law Enforcement Integrity,
32
The information on Australia has been taken from the Executive summary on Australia, Note
by the Secretariat, Third Session of the Implementation Review Group, Conference of the
States Parties to the United Nations Convention Against Corruption, UN Doc. No.
CAC/COSP/IRG/I/2/1 (2012); see also page on Foreign bribery, website of the AttorneyGeneral's
Department,
Australian
Government,
available
at
<http://www.ag.gov.au/CrimeAndCorruption/Foreignbribery/Pages/default.aspx>,
last
visited on 8th August, 2015.
18
the
Australian
Crime
Commission
and
the
Commonwealth Ombudsman and the Australian
Federal Police. In addition to these agencies, the
Australian government also attempts to address corrupt
conduct in an overarching manner.
3.2.2
For implementing its obligations under
clause (a) of Article 15 of the UNCAC, section 141.1 of
the Australian Criminal Code outlaws the bribery of a
Commonwealth public official and covers a wide array
of officials at the federal level and a wide range of
conduct including the giving of benefits, obtaining gains
or causing losses. In consonance with clause (b) of the
Article 15, section 141.1 also criminalises the
acceptance of an undue advantage by a public official in
exchange for influence, either actual or perceived, on
the exercise of his officials duties.
3.2.3
Division 70 of Chapter 4 of the Australian
Criminal Code covers bribery of foreign public officials
and officials of public international organisations in the
context of Article 16. However, only active bribery of
international organisations as discussed under
paragraph 1 of Article 16 of the UNCAC is penalised
under Division 70. Passive bribery of such officials
under paragraph 2 of Article 16 does not constitute a
criminal offence under the Australian Criminal Code..
3.2.4
In the context of jurisdiction under Article 42
read in conjunction with Article 4 of the UNCAC, the
Australian anti-bribery law broadly applies to all
conduct within Australia, and to the conduct by
Australian citizens, residents and companies overseas.
While all payments are covered under the foreign
bribery statute in Australia, facilitation payments made
to expedite or to secure the performance of a routine
governmental action by a foreign official, political party
19
or party official are exempt from penalisation. For

identifying a transaction as a facilitation payment and
not bribery, the Australian law requires the benefit
received to be of a minor value and to be offered for the
sole or dominant purpose of expediting or securing
performance of a routine government action of a minor
nature. The proceedings of the transaction are also
required to be recorded. In addition to this, Australian
law also exempts those gifts and advantages that are
specifically permitted under the written law governing
the foreign public official and the official of a public
international organisation in question.
B. Austria33
3.3.1
Austria signed the UNCAC in 2003 and
ratified it in 2006. The legal framework against
corruption in Austria mainly includes provisions from
the Constitution, the Penal Code and the Criminal
Procedure Code. Austrian law complies fully with all
provisions of the UNCAC. The authorities involved
include the Federal Ministry of Justice, the Federal
Ministry of Interior and its Federal Bureau of AntiCorruption, the Central Office for Prosecuting Economic
Crimes and Corruption and the Criminal Police Office.
3.3.2
For the implementation of its obligations
under clause (a) of Article 15, Austrian law penalises the
offence of active bribery of national public officials
through sections 307 (active bribery involving a breach
of duties), 307a (granting of advantages), 307b (granting
of advantages for the purpose of exercising influence)
and 302 (abuse of official authority) of the Penal Code.
33
The information on Austria has been taken from the Country Review Report of Austria,
Review by Israel and Vietnam for the review cycle 2010-2015, United Nations Office on Drugs
and Crime. See also Executive summary on Austria, Note by the Secretariat, Fifth Session of
the Implementation Review Group, Conference of the States Parties to the United Nations
Convention Against Corruption, UN Doc. No. CAC/COSP/IRG/I/3/1/Add.11(2014).
20
Passive bribery of domestic public officials, which is

covered under clause (b) of Article 15, is implicated
under sections 304 (passive bribery involving a breach
of duties), 305 (acceptance of advantages), 306
(acceptance of advantages for the purpose of exercising
influence) and 302 (as discussed previously) of the Penal
Code.
3.3.3
In the context of paragraph 1 of Article 16,
Austria penalises the active bribery of foreign public
organisations through the same provisions as the one
used to implement its obligations under clause (a) of
Article 15. In this regard, the offences under section 307
to 307b do not specifically differentiate between
domestic or foreign public officials or officials of public
international organisations thereby implying their
application to both (which has been confirmed by
Austria in its Country Review Report). Further the
definition of a public official under section 74 of the
Penal Code, specifically includes any person who as an
organ or as an employee discharges tasks of legislation,
administration or justice for another state or for an
international organisation (paragraph 1(4a) of section
74). Section 302 of the Penal Code however is only
applicable to national public officials and not to others.
In relation to paragraph 2 of Article 16, the Austrian law
does not differentiate between national and foreign
public officials and officials of public international
organisations in the context of the offence of passive
bribery with the exception of section 302 that only
applies to national officials. Sections 304, 305, 306 of
Penal Code are relevant for the offence of passive bribery
of foreign public officials and officials of public
international organisations.
21
3.3.4
In respect of the implementation of Article 42
read in conjunction with Article 4 of the UNCAC, section
64 of the Austrian Penal Code allows for the exercise of
national jurisdiction without the dual criminality
requirement for criminal acts committed against an
Austrian official abroad, and for criminal acts
committed by an Austrian official abroad. For other
offences, jurisdiction is established subject to dual
criminality requirement, in the instance that the
offender is an Austrian citizen or a foreigner, who was
arrested in Austria and cannot be extradited to a foreign
State for other reasons than the nature or other
characteristics of the offence (section 65, Penal Code).
Consequently, the Austrian legislation not only provides
for the jurisdiction to prosecute when extradition is
denied due to nationality but also covers situations of
the denial of extradition for reasons unrelated to the
nature of the offences.
C. Canada34
3.4.1
Canada signed the UNCAC in 2004 and
ratified it in 2007. The laws that implement the
obligations of Canada under the UNCAC include
Criminal Code, Corruption of Foreign Public Officials
Act, Proceeds of Crime (Money Laundering) and
Terrorist Financing Act, and the Mutual Legal
Assistance in Criminal Matters Act. The body
responsible for checking corrupt conduct is the Royal
Canadian Mounted Police (RCMP).
34
The information on Canada has been taken from the Executive summary on Canada, Note by
the Secretariat, Fifth Session of the Implementation Review Group, Conference of the States
Parties to the United Nations Convention Against Corruption, UN Doc. No.
CAC/COSP/IRG/I/3/1/Add.8 (2014); see also Report of Transparency International Canada
Inc., UNCAC Implementation Review: Civil Society Organization Report (2013), available at
<https://www.bennettjones.com/uploadedFiles/Publications/Articles/UNCAC_Review_TICanada.pdf>, last visited on 8th August, 2015.
22
3.4.2
In the context of clauses (a) and (b) of Article
15, sections 119 (bribery of judicial officers), 120
(bribery of officers), 121 (frauds on the government), 122
(breach of trust by public officer), 123 (municipal
corruption), 124 (selling or purchasing office), 125
(influencing or negotiating appointments or dealing in
offices) and 426 (secret commissions) of the Canadian
Criminal Code outlaw the offer and acceptance of
bribery by Canadian officials. As noted in the Country
Review Report on Canada, the legal framework on
bribery under the Criminal Code is compliant with
Canadas obligations under Article 15. In this regard,
the definition of an official under section 118 is broad
in scope, and includes all persons who perform public
duties.
3.4.3
Canada penalises active bribery of foreign public
organisations under section 3 of the Corruption of
Foreign Public Officials Act (CFPOA). In fact, under the
provisions of CFPOA, it is also possible to prosecute an
individual for conspiracy or attempt to commit bribery,
along with aiding and abetting in the commission of
bribery, an intention in common to commit bribery, and
counselling others to commit bribery. Passive bribery of
international organisations as mentioned under
paragraph 2 of Article 16 is not penalised under the
CFPOA. However, the manipulation, falsification, or
destruction of books and records to conceal or
facilitate bribery constitutes an offence under the
CFPOA (section 4).
3.4.4
In terms of jurisdiction and territoriality
under Article 4 and 42 of the UNCAC, the CFPOA
exercises jurisdiction over the offences that are
23
committed in whole or in part on the territory of Canada.

In addition, CFPOA also covers the conduct of Canadian
companies and individuals based on their nationality,
regardless of where the alleged bribery took place. Prior
to an amendment in 2013, the CFPOA required the
existence of a real and substantial link between the
offence and Canada in order to exercise jurisdiction
beyond its territory. However, this requirement has now
been removed. Sub-section 7(4) of the Criminal Code
also extends jurisdiction to acts and omissions by
public service employees under the Public Service
Employment Act even though such acts and omissions
may have been committed outside Canada. This is done
only in the instance where the conduct in question is an
offence in the place where it is committed and is also an
indictable offence in Canada (principle of dual
criminality). In terms of exceptions, prior to its
amendment in 2013, the CFPOA provided for the
defence of facilitation payments where payments made
to expedite or secure the performance by a foreign
public official or an official of a public international
organisation of any act of a routine nature that forms a
part of the officials duties or functions were exempt
from penalisation. With the amendments to 2013, this
requirement has now been repealed.
D. El Salvador35
3.5.1
El Salvador signed the UNCAC in 2003 and
ratified it in 2004. On ratification, international treaties
become a part of the domestic law of El Salvador and
are directly applicable. The anti-corruption institutions
in the country include the Office of the Under-Secretary
for Transparency and Prevention of Corruption which is
35
The information on El Salvador has been taken from the Executive summary on El Salvador,
Note by the Secretariat, Fifth Session of the Implementation Review Group, Conference of the
States Parties to the United Nations Convention Against Corruption, UN Doc. No.
CAC/COSP/IRG/I/2/1/Add.22 (2013).
24
attached to the Office of the President of the Republic,

the Office of the Attorney General that houses a unit
that specialises in the combating of corruption, the
Financial Investigation Unit, which is attached to the
Office of the Attorney General, the Government Ethics
Tribunal, the Court of Audit, the Office of the
Superintendent of the Financial System, the
Coordinating Commission for the Judiciary and lastly
the Executive Technical Unit of the Judiciary.
3.5.2
The offence of active bribery of national
public officials under clause (a) of Article 15 of the
UNCAC is penalised under article 335 (on active bribery)
and article 310 (on malfeasance) of the Criminal Code
of El Salvador. Persons who serve in legislative or
judicial entities are not included within the definition of
a public official as set out under article 39 of the
Criminal Code. These provisions also do not mention
any advantage or benefit for third parties.
3.5.3
In the context of passive bribery of national
public officials under clause (b) of Article 15 of the
UNCAC, the Criminal Code criminalises the acceptance
of a bribe in exchange for malfeasance (article 330),
acceptance of a bribe in exchange for abuse of functions
(article 331) and extortion (article 327). Advantages to
third parties are again excluded from the purview of this
offence.
3.5.4
Active bribery of foreign public officials and
paragraph 1 of Article 16 of the UNCAC are covered
under article 335A of the Criminal Code that deals with
transnational bribery. Till date there have been no
prosecutions for transnational bribery in El Salvador.
The offence of passive bribery under paragraph 2 of
Article 16 of the UNCAC is not covered under any
legislation in the country.
25
3.5.5
In the context of jurisdiction, El Salvador
exercises its jurisdiction over most of the circumstances
referred under Article 42 of the UNCAC. However there
exists a lack of clarity on the exercise of its jurisdiction
over (1) offences of corruption committed by one of its
nationals abroad, (2) participation, preparation, attempt
and other acts committed outside its territory in
pursuance of money-laundering, (3) offences committed
against a State Party to the UNCAC, and (4) offences
committed by a foreign national who is present in its
territory. The domestic laws of El Salvador also do not
provide for a mechanism for consultation with the
competent authorities of other States Parties as
required under Article 42 of the UNCAC. The dual
criminality is required for the purpose of extradition.
E. Malaysia36
3.6.1
Malaysia signed the UNCAC in 2003 and
subsequently ratified it in 2008. The anti-corruption
bodies in Malaysia include the Malaysian AntiCorruption Commission, the Attorney Generals
Chambers, the Royal Malaysia Police, the Royal
Customs and Excise Department, the Financial
Intelligence Unit of the Central Bank of Malaysia, the
Ministry of Foreign Affairs, the Public Service
Department and the Judiciary.
3.6.2
In respect of clause (a) of Article 15 of the
UNCAC, Malaysia has adopted measures to penalise
active bribery of its national public officials under
sections 16 (b), 17 (b) and 21 of the Malaysian AntiCorruption Commission Act (MACCA). Furthermore,
36
The information on Malaysia has been taken from the Country Review Report of Malaysia,
Review by the Philippines and Kenya for the review cycle 2012-2013, United Nations Office on
Drugs and Crime. See also Executive summary on Malaysia, Note by the Secretariat, Resumed
fourth Session of the Implementation Review Group, Conference of the States Parties to the
United Nations Convention Against Corruption, UN Doc. No. CAC/COSP/IRG/I/3/1/Add.1
(2013).
26
sections 214 and 161 to 165 of the Penal Code along

with section 137 of the Customs Act are also relevant
for the purpose of active bribery of national public
officials. In this regard, if the conduct is question is
punishable under MACCA and any other law, the
offender will be charged only under MACCA. Further,
the Country Review Reports on Malaysia also point out
that all gifts received by national public officers must be
reported in accordance with section 25(1) and (3) of
MACCA. In the instance a gift is received and not
reported, it is deemed to have been received corruptly.
3.6.3
Passive bribery under clause (b) of Article 15
of the UNCAC is covered under sections 16(a), 17(a) and
21 of MACCA. The various forms of passive bribery
covered include soliciting, receiving, agreeing to receive,
agreeing to accept, and attempting to obtain any
gratification for oneself or another. The corresponding
offences on passive bribery of national public officials
are also covered under sections 161, 162, 163, 165 and
215 of the Penal Code. Section 161 of the Penal Code
outlaws the taking of gratification, other than legal
remuneration, in respect of an official act by a public
servant and is also applicable to someone expecting to
be a public servant.
3.6.4
Paragraph 1 and paragraph 2 of Article 16 on
active and passive bribery of foreign public officials and
officials of public international organisations are
implemented under section 22 of MACCA. The offence
of bribery of foreign public officials and officials of public
international organisations was introduced in 2009 in
order to ensure compliance with Article 16 of the
UNCAC. MACCA contains definitions of foreign public
officials and officer of a public international
organization
which
reflect
the
corresponding
definitions under Article 2 of the UNCAC. In Malaysia,
27
the legislature has also provided a compelling

presumption under section 50 of MACCA in order to
ease the prosecution of cases involving the
aforementioned offences. The presumption comes into
operation only when the essential ingredients of the
offence have been established by the prosecution. Under
this presumption, once it has been shown that
gratification has been received by a national or foreign
public official or an official of a public international
organisation, it shall be presumed that it was corruptly
received, unless the contrary is proved. It is pertinent to
mention that in relation to paragraph 2 of Article 16,
Malaysia has made a request for technical assistance
under its Country Review Report submitted to the
UNCAC for reconciling the provisions of MACCA with its
obligations under the Diplomatic Privileges Act and the
International Organizations Act.
3.6.5
In the context of jurisdiction under Articles 4
and 42 of the UNCAC, sections 2, 3 and 4 of the Penal
Code, section 66 of MACCA and section 82 of AntiMoney Laundering and Anti-Terrorism Financing Act
are of relevance. In the instance an offence is committed
by a citizen or permanent resident outside Malaysia,
jurisdiction maybe exercised over the offence as if it
were committed in the territory of Malaysia. Jurisdiction
also extends to offences committed by any person
against the property of any citizen or the Government of
Malaysia. Principle of dual criminality is recognised in
Malaysia and is applied in the context of extraditable
offences.
28
F. Republic of Korea (South Korea)37

3.7.1
The Republic of Korea signed the UNCAC in
2003 and ratified it in 2008. Articles 133, 129 and 130
of the Criminal Act of the Republic of Korea penalise
both active and passive bribery of national public
officials as required under clauses (a) and (b) of Article
15 of the UNCAC. The term public official as defined
under Article 2 of the State Public Officials Act and
Article 2 of the Local Public Officials Act covers a broad
range of individuals including appointed and elected
officials, members of the judiciary and prosecutors.
3.7.2
Korean law also criminalises active bribery of
international
organisations as required
under
paragraph 1 of Article 16 of the UNCAC. Under the Act
on Combating Bribery of Foreign Public Officials in
International Business, Articles 2 and 3 cover all
elements of active bribery as envisaged under
paragraph 1 of Article 16 of the UNCAC. However, the
offence of passive bribery under paragraph 2 of Article
16 of the UNCAC is not specifically outlawed.
Nevertheless, the Republic of Korea can prosecute
passive bribery of foreign public officials and officials of
public international organisations under the Criminal
Act through its provision on the breach of trust. Such
officials can also be subject to prosecution for moneylaundering operations.
3.7.3
In the context of Articles 4 and 42 of the
UNCAC, Articles 2, 3, 4, 6 of the Criminal Act
adequately discuss the instances where jurisdiction can
be exercised including under the principle of
37
The information on the Republic of Korea has been taken from the Executive summary on
South Korea, Note by the Secretariat, Fourth Session of the Implementation Review Group,
Conference of the States Parties to the United Nations Convention Against Corruption, UN Doc.
No. CAC/COSP/IRG/I/3/1/Add.7 (2013).
29
territoriality. In addition, the Republic of Korea also

exercises jurisdiction over its nationals who commit
crimes outside its territory, and over offences against
itself and its nationals outside its borders.
3.7.4
In March 2015, the Republic of Korea
promulgated a new Anti-Corruption Law. However on
account of strong criticism on several counts, the law
was challenged before the Constitutional Court and has
therefore not been brought into force.38
G. South Africa39
3.8.1
South Africa signed and ratified the UNCAC
in 2004. The institutions that fight against corruption
in South Africa include the Anti-Corruption Task Team,
Directorate of Priority Crime Investigation, National
Prosecution Authority, Specialised Commercial Crimes
Unit, Special Investigation Unit, National AntiCorruption Forum and the Public Protector.
3.8.2
Clauses (a) and (b) of Article 15 of the UNCAC
are codified under section 3 of the Prevention and
Combating of Corrupt Activities Act, 2004 (PRECCA),
which criminalises the offence of corruption in general,
namely, the offer (clause (b)) or acceptance (clause (a))
of gratification, directly or indirectly, to any person,
whether for the benefit of that person or for another
person, in order to act, personally or by influencing
another person, in a manner that is unlawful or
38 Jeyup
S. Kwaak, South Korea Lawmakers Approve Anticorruption Law, The Wall Street
Journal (March 3, 2015), available at <http://www.wsj.com/articles/south-korea-lawmakersapprove-anticorruption-law-1425387240>, last visited on 8th August, 2015; see also South
Korea:
Controversial
Anti-Corruption
Law
Promulgated,
available
at
<http://www.loc.gov/lawweb/servlet/lloc_news?disp3_l205404377_text,>, last visited on 8th
August, 2015.
39
The information on South Africa has been taken from the Country Review Report of South
Africa, Review by Mali and Senegal for the review cycle 2010-2015, United Nations Office on
Drugs and Crime; see also Executive summary on South Africa, Note by the Secretariat, Fourth
Session of the Implementation Review Group, Conference of the States Parties to the United
Nations Convention Against Corruption, UN Doc. No. CAC/COSP/IRG/I/2/1/Add.9 (2012).
30
amounts to an abuse of power or breach of trust. A

public officer is defined under section 1 but does not
specifically include legislators, judicial officers and
prosecutors. Nevertheless, the actions of such officials
are covered within the scope of the PRECCA under
sections 7, 8 and 9.
3.8.3
In the context of paragraph 1 of Article 16 of
the UNCAC, section 5 of PRECCA read in conjunction
with section 3 criminalises the offence of active bribery
of foreign public officials and officials of public
international organisations. Passive bribery of such
officials under paragraph 2 of Article 16 is not
specifically penalised under PRECCA. However, through
the general prohibition under section 3 of PRECCA
which applies to any person, it is possible to penalise
the acceptance of a bribe by a foreign public official or
an official of a public international organisation.
3.8.4
In the context of jurisdiction, section 90 of
the Magistrates Court Act, 1944 and section 35 of
PRECCA allows for the exercise of jurisdiction over all
criminal offences that are committed within the territory
of South Africa. Under section 35(1) of PRECCA,
jurisdiction is exercisable over all offences covered
under the Act, regardless of the act constituting an
offence at the place of its commission in the instance
the alleged offender is a citizen, or is an ordinary
resident or has been arrested in the territory of the
South Africa. Under section 35(2), jurisdiction can also
be exercised over offences that occur outside South
Africa, notwithstanding the act constituting an offence
in the place of its commission, if (a) such an act affects
or is intended to affect a public body, a business or any
other person in South Africa, (b) the alleged offender is
found in the territory of South Africa, and (c) the
offender is not extradited by South Africa. Citizens of
31
South Africa who commit crimes in foreign jurisdictions

but are not extradited abroad can also be prosecuted
under section 35(2) of PRECCA.
H. Switzerland40
3.9.1
Switzerland signed the UNCAC in 2003 and
ratified it in 2009. An Inter-departmental (interministerial) Working Group against Corruption has
been established in the country to prevent corruption,
although the Group has no powers to engage in
administrative enquiries or criminal investigations. The
Attorney-Generals Office is responsible for criminal
investigations and prosecutions against the federal
government. Issues surrounding mutual legal
assistance are also addressed by the Attorney-Generals
Office. The Money-laundering Reporting Office plays a
significant role in (1) collecting and analysing
suspicious facts reported by financial intermediaries,
and (2) in instances where the facts are well-founded,
forwarding the necessary information to the criminal
prosecution authorities of the Confederation.
3.9.2
In the context of the offences under Articles
15 and 16 of the UNCAC respectively, article 322 of the
Swiss Criminal Code covers all the offences of active and
passive bribery of national officials, foreign public
organisations within its scope. The bribery provision
also penalises the incitement of a national public official
to perform an action that is not contrary to his or her
duties. While indirect bribery is not specifically
criminalised, the interpretation and application of the
40
The information on Switzerland has been taken from the Country Review Report of
Switzerland, Review by Algeria and Finland for the review cycle 2010-2015, United Nations
Office on Drugs and Crime; see also Executive summary on Switzerland, Note by the
Secretariat, Reconvened Third Session of the Implementation Review Group, Conference of
the States Parties to the United Nations Convention Against Corruption, UN Doc. No.
CAC/COSP/IRG/I/2/1/Add.2 (2012).
32
national anti-corruption laws allows for the prosecution

of bribery committed through intermediaries.
3.9.3
Swiss courts have established their
jurisdiction in accordance with Article 42 of the UNCAC
and recognise the principles of active and passive
personality for the exercise of such jurisdiction. Under
article 7(1) of the Swiss Criminal Code, felonies and
misdemeanors committed outside Swiss territory by or
against a person of Swiss nationality also come under
Swiss criminal jurisdiction insofar as dual criminality is
satisfied. Swiss courts also exercise jurisdiction in cases
referred to in sub-paragraph (b) and sub-paragraph (d)
of Article 42(2) of the UNCAC. Under exceptional
circumstances, criminal jurisdiction can also be
established in relation to crimes committed abroad
where the alleged offender and the victim are both
foreign nationals. These circumstances may relate to
crimes that are condemned by the international
community or cases where due to the application of the
principle of non-refoulement, the extradition request
cannot be operationalised.
I. United States41
3.10.1
The United States of America (US) signed
the UNCAC in 2003 and ratified it in 2006. The primary
enforcement body for anti-corruption efforts in the US
is the Department of Justice (DOJ), which checks the
bribery of domestic public officials, foreign public
organisations. The Federal Bureau of Investigations
41
The information on United States has been taken from the Country Review Report of the
United States of America, Review by Sweden and the Former Yugoslav Republic of Macedonia
for the review cycle 2010-2015, United Nations Office on Drugs and Crime; See also A Resource
Guide to the U.S. Foreign Corrupt Practices Act, Criminal Division of the U.S. Department of
Justice and the Enforcement Division of the U.S. Securities and Exchange Commission (2012),
available
at
<http://www.justice.gov/sites/default/files/criminalfraud/legacy/2015/01/16/guide.pdf>, last visited on 8th August, 2015.
33
(FBI), International Anticorruption Unit and the

Securities and Exchange Commission (SEC) assist the
DOJ as necessary. The Federal Bribery Statute (18 US
Code 201) under the US Criminal Code and the
Foreign Corrupt Practices Act (FCPA) cover the
relevant bribery offences.
3.10.2
In the context of clause (a) of Article 15 of the
UNCAC, active bribery of national public officials is
penalised under section 201(b)(1) of the Federal Bribery
Statute under the US Code. All the elements of clause
(a) of Article 15 are covered under the Federal Bribery
Statute including giving, offering or promising anything
of value, directly or indirectly with intention, any
other person or entity, and to do or omit to do any act
in violation of the lawful duty. Different States in the
US have enacted their own laws prohibiting corrupt
conduct as described under clause (a) of Article 15.
3.10.3
Passive bribery of national public officials as
mentioned under clause (b) of Article 15 is penalised
under various laws including 18 U.S.C. 201(b)(2) &18
U.S.C. 201(c) (bribery of public officials and
witnesses), 18 U.S.C. 1346 (definition of scheme or
artifice to defraud" another of the intangible right to
honest services), 18 U.S.C. 1951 (interference with
Commerce by Threats or Violence the Hobs Act), 18
U.S.C. 1952 (Interstate of Foreign Travel in Aid of
Racketeering Enterprises) of the US Code. The requisite
elements under clause (b) of Article 15 are adequately
covered under these laws. Different States have again
enacted their own laws to implement the offence under
paragraph 2.
3.10.4
Active bribery of foreign public officials and
paragraph 1 of Article 16 of the UNCAC is penalised
under the FCPA, Title 15, US Code. Additionally, US
34
federal law enforcement authorities, depending upon

the facts and circumstances, can also resort to other
federal laws to punish the conduct in question. These
laws include Title 18 of United States Code, sections
371 (conspiracy to commit an offence against the United
States), 1341 (mail fraud), 1343 (wire fraud), 1952
(interstate and foreign travel or transportation in aid of
racketeering
enterprises),
and
1956
(money
laundering). Keeping a check on active bribery under
the FCPA is a significant priority for the DOJ, the FBI
and the US SEC. Prosecutions conducted so far under
the FCPA involve both individuals and foreign and
domestic companies. In the context of foreign nationals,
the FCPA applies to a particular transaction only in
instances where a portion of the transaction involving
misconduct occurs within the territorial jurisdiction of
the United States. The FCPA also applies to companies
listed on the US stock exchange, as well as the officers,
directors, employees, and agents of a listed company,
regardless of their nationality.
3.10.5
the UNCAC, the FCPA does not explicitly penalise
public international organisations. This is due to certain
policy and jurisdictional concerns. Nevertheless, the US
can and has prosecuted foreign officials for money
laundering and employees of public international
organisations for corruption pursuant to the wire fraud
statute.
3.10.6
In the context of Articles 4 and 42 of the
UNCAC, US law allows for the exercise of jurisdiction
over all acts that violate US law and are committed
within US territory. In the context of the offence of active
bribery, the FCPA specifically allows for the exercise of
jurisdiction over actions committed by US nationals and
35
businesses abroad. In addition, acts committed in

furtherance of a bribe by foreign nationals and foreign
businesses within the territory of the U.S. are also
covered within the territorial jurisdiction of the US. Dual
criminality is recognised and required for extraditing
alleged offenders from the US. The defences applicable
to a charge of bribery as mentioned under the Securities
and Exchange Act of 1934 include (1) the payment, gift,
offer, or promise of anything of value that was made,
was lawful under the written laws and regulations of the
foreign official; (2) the payment, gift, offer, or promise of
anything of value that was made, was a reasonable and
bona fide expenditure, such as travel and lodging
expenses, incurred by or on behalf of a foreign official,
and was directly related to (A) the promotion,
demonstration, or explanation of products or services;
or (B) the execution or performance of a contract with a
foreign government or agency thereof.
J. United Kingdom42
3.11.1
The United Kingdom of Great Britain and
Northern Ireland (UK) signed the UNCAC in 2003 and
subsequently ratified it in 2006. As noted in its Country
Review Report, UK demonstrates an exemplary system
of curbing bribery and corruption. The institutional
framework for checking corruption in the UK mainly
consists of the international anti-corruption Champion
that is housed in the Cabinet, the office of the Attorney
General for England and Wales, the Crown Prosecution
Service (CPS) and the Serious Fraud Office (SFO) and
42
The information on the United Kingdom has been taken from the Country Review Report of
the United Kingdom, Review by Greece and Israel for the review cycle 2011-2012, United
Nations Office on Drugs and Crime; See also Self-Assessment for United Nations Convention
Against Corruption - Chapters III and IV, Justin Williams, Policy Adviser, Anti-Corruption,
Department for International Development, United Nations Office on Drugs and Crime (2011).
36
the Serious and Organised Crime Division within the

Crown Office.
3.11.2
Both active and passive bribery of national
public officials as mentioned under clauses (a) and (b)
of Article 15 of the UNCAC, are penalised under sections
1, 2, 3, 5 and 11 of the UK Bribery Act. The Act does not
use the concept of a public official to describe the
beneficiary of the undue and unlawful advantage,
thereby dispensing with the need for a definition similar
to the one under Article 2 (a) of the UNCAC.
Consequently, the Act focuses instead on the function
or activity to which the bribe relates. This function or
activity holds relevance for the purpose of applying the
Bribery Act to unlawful conduct that is performed
outside the UK, thus covering all public servants (such
as military of diplomatic staff) within its scope. The
elements of the offences of active and passive bribery
are discussed in great detail under the relevant
provisions of the Bribery Act. They also cover instances
where no gift or other benefit is actually given or
received. The improper performance of an official
function in anticipation or as a consequence of a bribe
also constitutes an offence under the Bribery Act. Both
tangible and intangible benefits are of relevance for the
purpose of the corrupt conduct.
3.11.3
the requisite elements of the offence of active bribery are
covered under section 6 of the Bribery Act. The conduct
implicated includes instances where no gift or other
benefit is actually given or received. In contrast to the
active and passive bribery of national public officials,
section 6 also includes offerings to third parties that are
made at the request of a foreign public official or an
official of a public international organisation or with his
assent or acquiescence. Socially adequate gifts and
37
offerings can be interpreted to not constitute bribery

only in the instance where it is determined that they
were not intended to influence their recipient. Sanctions
for active and passive bribery of national public officials,
international organisations are the same under the
Bribery Act. UK law also does not specifically require the
bribery of foreign public officials to constitute an offence
under the domestic law of the concerned foreign
country.
3.11.4
the UNCAC, UK penalises the passive bribery of foreign
organisations under section 2 of the Bribery Act. Under
section 2, the acceptance of bribe by any person
including a foreign public official or an official of a
public international organisation constitutes a criminal
offence under the Bribery Act. Thus, while there is no
specific offence of passive bribery by foreign public
officials
and officials of public international
organisations, the general offence covering passive
bribery is applicable to all such officials.
3.11.5
In relation to the jurisdictional clauses under
the UNCAC, all acts of corruption committed within the
territory of the UK are punishable under the UK
criminal law. In addition, jurisdiction is also exercisable
over offences committed on board UK ships. In the
context of the offence of bribery in particular, section 12
of the Bribery Act also lists out the extended active
nationality principle wherein all persons who have a
close connection with the United Kingdom, including
British citizens, individuals ordinarily resident in the
UK, bodies incorporated under UK law (including UK
subsidiaries of foreign companies) and Scottish
partnerships are covered within the scope of application
38
of the provisions on bribery. The defences applicable to

a charge of bribery include (1) the written law that are
applicable in the country or territory concerned, (2)
bona-fide expenditure including travel, which is related
to promotional activities and (3) due diligence by
companies that ensures that none of its employees,
agents or any other associated persons are involved in
the act of bribery.
3.11.6
In the light of the above discussion, it can be
inferred that legislations in various jurisdictions that
attempt to penalise active and passive bribery under
Article 16 of the UNCAC, do so with caution in order to
preserve harmonious diplomatic ties. The 10 countries
surveyed have criminalised active bribery of foreign
organisations under paragraph 1 of 16 of the UNCAC.
However, in the context of paragraph 2 of Article 16,
only two countries (Malaysia and Switzerland) have a
specific provision under its bribery law on paragraph 2
of Article 16. Of the remaining 8 countries, three
(Australia, Canada, and El Salvador) do not penalise
public
international
organisations
under
any
circumstances, while five (Austria, South Africa, South
Korea, UK and USA) have general provisions applicable
to all persons which can be construed to cover passive
international organisations. Principles of nationality
and territoriality under Article 42 read with Article 4 of
the UNCAC are followed in all countries except El
Salvador, where the overall application of these
principles is not clear.
39
CHAPTER IV
CRITICAL ANALYSIS OF THE PREVENTION OF
BRIBERY OF FOREIGN PUBLIC OFFICIALS AND
OFFICIALS OF PUBLIC INTERNATIONAL
4.1
The Prevention of Bribery of Foreign Public
Officials and Officials of Public International
Organisations Bill, 2015 (the 2015 Bill) has been
enacted in pursuance of Article 16 of the UNCAC which
India signed on 9 December 2005 and ratified on 9 May
2011. The intention of the 2015 Bill is to serve as a
composite legislation that contains provisions in
pursuance of both Article 16(1) [active bribery] as well
as Article 16(2) [passive bribery] of the UNCAC. By
clause 1(2), it establishes applicability both on the basis
of the territorial principle as well as the nationality
principle. It has three key parts
4.2
First, the offences established under the Bill;
second, the processes for investigation and prosecution
of such offences; third, the inter-relation of the Bill with
other legislations and miscellaneous matters.
4.3
Clauses 3 and 4 of the Bill contain its main
offences. Clause 3, enacted in pursuance of Article
16(2), broadly stated, makes bribe-taking by a foreign
public official or official of a public international
organisation punishable. Clause 4, enacted in
pursuance of Article 16(1), makes giving of bribes to a
foreign public official or official of a public international
organisation punishable. However, an exception to the
operation of clause 4 is carved out for commercial
organisations if the expenses were reasonable and
related to promotion, performance of a contract or the
40
organisation had adequate procedures to prevent

persons from engaging in such conduct.
4.4
The key requirement to establish both
offences is the existence of an undue advantage. In
clause 3, the foreign public official or official of a public
international organisation must obtain an undue
advantage from what he accepts; analogously, in clause
4, the bribe-giver must give an undue advantage to a
organisation. Further, in clause 4, the bribe must be
given to obtain an advantage relating to the conduct of
international business. Attempts to take or give bribes
as well as abetment of the commission of such offences
are punishable under clause 5.
4.5
Clauses 6 to 12 deal with the processes that
will be followed in prosecuting offences under the Bill.
They are premised on the understanding that the Bill
will have extra-territorial application and thus require
agreements with foreign countries for enforcement.
Accordingly, clause 6 empowers the Central
Government to enter into such agreements for
enforcement as well as exchange of information. Clause
7 deems offences under this Bill to be extraditable in all
extradition treaties signed by India. Clauses 8 to 12 deal
with processes pertaining to exchange of information
and international co-operation pertaining to a
particular case.
4.6
Clauses 13 to 19 and 22 provide for the interrelation between the Bill and other legislations,
including any consequent amendments that are
provided in the Schedule to the Bill. Additionally, clause
16 provides for appellate and revisional powers of the
High Court from decisions of the Special Judge who is
the adjudicating authority under this 2015 Bill. Clauses
41
20 and 21 deal with the scope and procedure for

delegated legislation under the 2015 Bill.
4.7
A clause-by-clause analysis of the 2015 Bill
has been conducted hereafter. Each provision of the
proposed 2015 Bill is also tested against relevant
provisions of UNCAC, and wherever necessary,
compared with similar laws in other jurisdictions.
5.
Clause-by-Clause
Analysis
of
the
Prevention of Bribery of Foreign Public Officials and
Officials of Public International Organisations Bill,
2015
A. Preamble
Analysis and comment:
5.1.1
The Preamble of the 2015 Bill is unduly long,
and repeats the text of Resolution 58/4 of 31st October,
2003 that was adopted by the UN General Assembly (to
which the UNCAC was annexed). This repetition is not
necessary. Instead, it will be sufficient to capture Indias
main obligations under the UNCAC in brief.
5.1.2
Suggested draft:
A
BILL
to prevent corruption in relation to bribery of foreign
organisations and for matters connected therewith or
incidental thereto.
WHEREAS India has signed the United Nations
Convention Against Corruption on 9th December, 2005,
and ratified the same on 9th May, 2011;
42
AND WHEREAS this Convention expresses concern about

the seriousness of problems and threats posed by
corruption to the stability and security of societies,
undermining the institutions and values of democracy,
ethical values and justice and jeopardising sustainable
development and the rule of law; and about cases of
corruption that involve vast quantities of assets, which
may constitute a substantial portion of the resources of
States, and that threaten the political stability and
sustainable development of those States;
AND WHEREAS in terms of Article 16 of this Convention,
each State Party is required to adopt such legislative
and other measures, as may be necessary to establish
the bribery of foreign public officials and officials of
public international organisations, as a criminal
offence.
B. Clause 1
5.2.1
are.
Clauses 1(1) and 1(3) may be retained as they
5.2.2
However, there are concerns with clause 1(2).
In particular, clause 1(2)(c), which attempts to extend
the jurisdiction of this law to persons on an aircraft or
ship registered outside India but for the time being in or
over India, is extremely broad in its application, and
may not be consistent with the principles of sovereignty
envisaged by Article 4 (Protection of Sovereignty) of the
UNCAC. Article 4(1) of the UNCAC requires that States
Parties to the UNCAC will carry out their obligations
under the Convention in a manner consistent with
principles of sovereign equality and territorial integrity
of States and that of non-intervention in the domestic
43
affairs of other States. Article 4(2) further clarifies that

under the UNCAC, a State Party cannot exercise
jurisdiction or perform functions that are reserved
exclusively for the authorities of another State by its
domestic law. In light of these provisions, clause 1(2)
must be redrafted to clarify the circumstances in which
the conduct constituting an offence under this Act may
fall under the jurisdiction of Indian law.
5.2.3
Further, clause 1(2)(d)(ii) contains two terms
that are unclear and not defined, i.e., place of
business and ordinary residence in India, which can
lead to concerns during interpretation and applicability.
5.2.4
Suggested draft:
1. Short title, extent and commencement.

(1) This Act may be called the Prevention of Bribery of
Foreign Public Officials and Officials of Public
International Organisations Act, 2015.
(2) It extends to the whole of India, and applies
(a) when the conduct constituting the offence under
the Act occurs:
(i) wholly or partly in India; or
(ii) wholly or partly on board an aircraft or ship
registered in India at the time of the
commission of the offence;
(b) when the conduct constituting the offence under
the Act occurs wholly outside India, and the
offence is committed by:
(i) a person who is an Indian citizen;
(ii) a person who is a permanent resident of
India; or
44
(iii)
a person that is a body corporate
incorporated by or under the laws of India.
Explanation 1: For the purposes of clause (b), the
expression permanent resident shall have the same
meaning as assigned to it under the Income Tax Act,
1961 (43 of 1961).
Explanation 2: When the conduct constituting an
offence occurs wholly outside India, no proceedings
under this Act shall commence without the previous
sanction of the Central Government.
(3) It shall come into force on such date as the Central
Government may, by notification, appoint; and different
dates may be appointed for different provisions of this
Act and any reference in any such provision to the
commencement of this Act shall be construed as a
reference to the coming into force of that provision.
C. Clause 2
5.3.1
The definition of an agent under clause
2(1)(a) now appears once in the redrafted Bill as
recommended by the Commission (see comment on
clause 4). Accordingly, this definition should be deleted
from here and instead incorporated in the appropriate
location.
5.3.2
Clause 2(1)(b) may be retained as it is.
5.3.3
Clause 2(1)(c) contracting State: This
definition is unnecessary, and may be deleted. The term
contracting State is used in multiple clauses of the
2015 Bill. If this term is retained, it will imply that any
proceeding under this law will not be able to proceed
until a reciprocal arrangement with the State in
45
question is entered into. Retaining this definition, thus,

may entail undue procedural delays. Instead, it is
recommended that the term be replaced by the term
concerned State in the relevant clauses, which will be
interpreted appropriately as required by the
circumstances.
5.3.4
Clause 2(1)(d) foreign country: This
definition seems deficient and incomplete. It proceeds to
define a foreign country only on the basis of
government, without having any reference whatsoever
to territory. Guidance may be taken from other statutes,
such as the Canadian Corruption of Foreign Public
Officials Act 1998, to provide, firstly, that foreign
country means any country other than India, and
thereafter, include sub-divisions of government.
5.3.5
Clause 2(1)(e) foreign public official: This is
a verbatim reproduction of the definition of the term in
Article 2(b) of the UNCAC. However, the terms public
agency and public enterprise are rather vague and
not defined. The Department-related Parliamentary
Standing Committee on Personnel, Public Grievances,
Law and Justice, in its Fiftieth Report on the 2011
version of the 2013 Bill, presented to the Rajya Sabha
on 29 March 2012, had raised similar concerns. The
Standing Committee pointed out (in para 5.22A of its
Report) that phrases like public agency and public
enterprise are vital definitional variables. The
absence of definitional clarity in these provisions could
potentially lead to confusion in interpretation and
application, and recommended that these phrases be
defined further. The redrafted version of this definition
will address these concerns of the Standing Committee
as well.
46
5.3.6
There is also no need to include official or
agent of a public international organisation in this
definition, as that term is defined separately in clause
2(1)(g).
5.3.7
Clause 2(1)(f) and 2(1)(g) may be retained as
they are.
5.3.8
Clause
2(1)(h)
public
international
organisation: This definition is a reproduction of the
Australian Criminal Code Amendment (Bribery of
Foreign Public Officials) Act 1999. However, a shorter
and more focused definition can be used, as based on
the UK Bribery Act 2010.
5.3.9
Clause 2(1)(j) undue advantage: This
definition per se is adequate. However, clauses 2(1)(j)(i)
and (ii) attempt to incorporate the offence itself into the
definition, which is inappropriate. Therefore, clauses
2(1)(j)(i) and (ii) should be deleted. Instead, an
explanation may be added to clarify the concept of legal
remuneration consistent with the meaning assigned to
it under the Prevention of Corruption Act, 1988.
5.3.10
Suggested draft:
Clause 2(1)(a) should be deleted.

Clause 2(1)(c) should be deleted.
Clause 2(1)(d): foreign country means a country
other than India, and includes:
(i) any political subdivision of that
country;
(ii) the government, and any department or
branch of government, of that country
or of a political subdivision of that
country; and
47
(iii)
any agency of that country or of a
political subdivision of that country;
Clause 2(1)(e): foreign public official means:
(i) a person who holds a legislative,
executive, administrative or judicial
position of a foreign country; or
(ii) a person who performs public duties or
public functions for a foreign country,
including a person employed by a
board, commission, corporation or
other body or authority that is
established to perform such duty or
function on behalf of the foreign
country, or is performing such duty or
function;
Explanation: For the purpose of this definition:
(A)public duty means a duty in the
discharge of which the State, the public
or the community at large has an
interest; and
(B)
public function means an act or
duty of a foreign public official in his
capacity as such;
Clause 2(1)(h): public international organisation
means an organisation whose members are any of
the following:
(i) countries or territories;
(ii) governments of countries or territories;
(iii)
other
public
organisations; or
(iv)
international
a mixture of any of the above.
48
Clause 2(1)(j): undue advantage means any

gratification, benefit or advantage, property or
interest in such property, reward, fee, valuable
security or gift or any other valuable thing (other
than legal remuneration), whether pecuniary or
non-pecuniary, tangible or intangible.
Explanation: For the purpose of this definition,
legal remuneration is not restricted to
remuneration paid to a foreign public official or
official of a public international organisation, but
includes all remuneration which he is permitted to
receive by the foreign country or the public
international organisation which he serves.
D. Clause 3
5.4.1
This clause addresses the offence of passive
bribery as provided under Article 16(2) of the UNCAC. It
is relevant to recall the discussion in chapters 2 and 3
of this Report, where it is pointed out that Article 16(2)
merely requires States Parties to the UNCAC to consider
criminalising the solicitation or acceptance of bribes by
international organisations. In this regard, Article 16(2)
is not a mandatory requirement but a directory
provision. Of the countries surveyed by us, no other
country, besides Malaysia and Switzerland, has passed
a law pertaining to Article 16(2).
5.4.2
It is also relevant to consider the principles of
sovereignty laid down in Article 4 of the UNCAC, under
which a domestic law cannot be applicable outside the
territory of the country where it is enacted. In this case,
in light of the redrafted clause 1(2) recommended by the
49
Commission above, a foreign public official or an official

of a public international organisation accused of passive
bribery would be prosecuted in India under clause 3
only if the offence is committed wholly or partly in India.
This would be further subject to the waiver of diplomatic
immunities by the concerned foreign country or public
international organisation. Even the relevant laws in
Malaysia and Switzerland do not contain any specific
provision to prosecute foreign public officials or officials
of public international organisations when the offence
has taken place outside their country.
5.4.3
Accordingly, the necessity of retaining clause
3 may be reconsidered. In the alternative, as suggested
above, in light of the proposed redraft of clause 1(2),
clause 3 will be applicable only to an act of passive
bribery that has taken place wholly or partly in India, or
on board an aircraft or ship registered in India at the
time of the commission of the offence.
5.4.5
Further, clause 3 as presently drafted makes
the offence of attempt to obtain undue advantage
punishable with the same duration of imprisonment as
the offence itself. However, the offence of attempt is
now captured in a separate provision in the redrafted
version of the 2015 Bill (see comment on clause 5), with
a lesser duration of imprisonment. Therefore, the words
or attempts to obtain may be deleted from here.
5.4.6
Suggested draft:
3. Prohibition for accepting gratification by
foreign public officials or officials of public
Whoever, being a foreign public official or official
of public international organisation, intentionally
50
accepts or obtains or agrees to accept from any

person, for himself or for any other person or
entity, any undue advantage other than legal
remuneration, as a motive or reward for doing or
forbearing to do any official act or for showing or
forbearing to show, in the exercise of his official
functions, favour or disfavour to any person or
entity for rendering or attempting to render any
service or disservice to any person or entity, shall
be punishable with imprisonment which shall not
be less than three years but which may extend to
seven years and shall also be liable to fine.
E. Clause 4
5.5.1
Clause 4(1) may be retained as it is. However,
there are several concerns with the remainder of the
provision.
5.5.2
In the first place, the proviso to clause 4(1)
seeks to carve out defences/exceptions to an offence
under clause 4(1). Therefore, it should not be in the form
of a proviso, but should be a substantive provision in its
own right.
5.5.3
The proviso is drafted to suggest that this
defence/exception is only available to a commercial
organisation and not to any person generally. That is
not a desired position, and in fact, this
defence/exception should apply to every person, the
meaning of which term includes a commercial
organisation.
5.5.4
Further, the proviso, in being attached to
clause 4(1), also suggests that the defence/exception is
51
applicable only to an offence under clause 4, whereas it

ought to be a general defence/exception for all offences
under this law, including the abetment or attempt of
any such offence.
5.5.5
Expressions such as adequate procedures
used in the proviso to clause 4(1), and guidelines used
in clause 4(2), appear to have been borrowed from the
scheme recommended by the Commission in its 254th
Report43 on the Prevention of Corruption (Amendment)
Bill, 2013 (the 2013 Bill). As per the proviso to clause
8 of the 2013 Bill, where an offence relating to bribing a
public servant has been committed by a commercial
organisation, such commercial organisation is
punishable with a fine. Clause 9 of the 2013 Bill further
provides that a commercial organisation may also be
guilty and punishable with fine, if any person
associated with the commercial organisation offers,
promises or gives an undue advantage to a public
servant. However, when such an associated person is
guilty, the commercial organisation may not be liable if
it can prove that it had in place adequate procedures
designed to prevent persons associated with it from
undertaking such conduct. Clause 10 of the 2013 Bill
further provides that where an offence is proved to have
been committed with the consent or connivance of any
director, manager, secretary or other officer of the
commercial organisation, such officer shall also be
guilty of the offence, punishable with imprisonment and
fine. Clause 9(5) of the 2013 Bill additionally requires
the Central Government to prescribe guidelines about
adequate procedures that can be adopted by
commercial organisations in connection with preventing
such bribery.
43
254th Report, p. 35.
52
5.5.6
Merely transferring selected provisions from
this scheme recommended by the Commission for the
2013 Bill will not be workable in this case in the 2015
Bill, unless the entire scheme of the 2013 Bill is fully
incorporated in the present 2015 Bill. In fact, in the
existing draft contained in clause 4 of the 2015 Bill, it
would mean that a commercial organisation would be
free from liability merely by showing that adequate
procedures were put in place. This would not be in
compliance with the requirements of Article 16 of the
UNCAC.
5.5.7
The Commission, therefore, recommends
that the entire scheme as recommended in its 254 th
Report in connection with the Prevention of Corruption
(Amendment) Bill, 2013, should be incorporated into
the 2015 Bill as well. This is provided as a new clause 8
of the redrafted Bill.
5.5.8
The explanation in proviso (b) to clause 4(1)
clarifying the expression undue advantage is unclear
and not properly worded. Instead, it is recommended
that
the
explanation
be
redrafted
as
a
defence/exception.
5.5.9
A comprehensive list of defences/exceptions
under this law must also necessarily include a provision
for routine government function, which will take into
account payments made in the course of routine duties
or functions of foreign public officials or officials of
public international organisations for the purpose of
issuing permits or licenses, processing official
documents,
and
similar
services.
This
defence/exception is available and acknowledged in
most other jurisdictions, and a version of the same may
be included here.
53
5.5.10
Accordingly, there should be a separate
provision on defences/exceptions available against any
offence listed in the law. This separate provision may be
placed after all the offences are listed out. Based on the
recommendations of the Commission regarding clause
5, this new provision on defences will appear as clause
7 of the redrafted Bill.
5.5.11
Suggested draft:
4. Prohibition for giving gratification to foreign

public
official
or
officials
of
public
Whoever, in relation to the conduct of
international business in order to obtain or retain
business or to obtain any advantage relating
thereto, intentionally, offers or promises to offer,
gives or promises to give, directly or indirectly, any
undue advantage, to any foreign public official or
official of public international organisation, for
himself or herself or for another person or entity,
in order that such official, act or refrain from
acting in the exercise of his or her official duties,
shall be punishable with imprisonment for a term
which shall not be less than three years but which
may extend to seven years and shall also be liable
to fine.
7. Persons not guilty of offence in certain
circumstances.
(1) No person is guilty of an offence under this Act
if the offer, promise or giving of any advantage,
which was made to a foreign public official or
official of a public international organisation, was
a reasonable and bona fide expenditure, such as
travel and lodging expenses, incurred by or on
behalf of such foreign public official or official of a
54
public international organisation and was directly

related to:
(a) the promotion, demonstration, or
explanation of products or services; or
(b) the execution or performance of a
contract with a foreign country or public
international organisation.
if the offer, promise or giving of any advantage is
permitted under the laws of the foreign country or
public international organization for which the
foreign public official or official of a public
international organisation performs duties or
functions.
if the offer, promise or giving of any advantage, is
made to expedite or secure the performance by a
foreign public official or official of a public
international organisation of any act of a routine
nature that is part of the duties or functions of the
foreign public official or official of the public
international organisation, such as:
(a) the issuance of a permit, licence or
other document to qualify a person to
do business;
(b) the processing of official documents,
such as visas and work permits;
(c) the provision of services normally
offered to the public, such as mail pickup and delivery, telecommunication
services and power and water supply;
and
55
(d) the provision of services normally

provided as required, such as police
protection, loading and unloading of
cargo, the protection of perishable
products
or
commodities
from
deterioration or the scheduling of
inspections
related
to
contract
performance or transit of goods.
Explanation: For removal of doubts, it is clarified
that a decision about whether to award new
business; or to continue existing business with a
particular person; or the terms of such new or
existing business; shall not be regarded as any act
of a routine nature for the purpose of sub-section
(3).
8. Liability of commercial organisations for
offences under this Act.
(1) When an offence under this Act has been
committed by a commercial organisation, such
commercial organisation shall be punishable with
fine.
(2) Where an offence under this Act is committed
by a commercial organisation, and such offence is
proved to have been committed with the consent
or connivance of any director, manager, secretary
or other officer of the commercial organisation,
such director, manager, secretary or other officer
shall be guilty of the offence and shall be liable to
be proceeded against and punishable with
imprisonment which shall not be less than the
punishment prescribed for such offence under this
Act.
(3) When an offence under this Act is committed
by any person associated with the commercial
organisation, the commercial organisation shall be
56
guilty of an offence and shall be punishable with

fine:
Provided that it shall be a defence for the
commercial organisation to prove that it had in
place adequate procedures designed to prevent
persons associated with it from undertaking such
conduct.
(4) The Central Government may, with a view to
enhancing compliance with this section by
commercial
organisations,
prescribe
such
guidelines about adequate procedures as may be
necessary, following a consultation process in
which the views of all the interested stakeholders
are obtained through public notice.
(5) For the purposes of this section:
(a) commercial organisation means:
(i) a body which is incorporated in
India and which carries on a
business, whether in India or
outside India;
(ii) any
other
body
which
is
incorporated outside India and
which carries on a business, or a
part of a business, in any part of
India;
(iii) a partnership firm or any
association of persons formed in
India and which carries on a
business, whether in India or
outside India; or
(iv) any
other
partnership
or
association of persons which is
formed outside India and which
carries on a business, or part of a
business, in any part of India;
57
(b) business includes a trade or

profession
or
providing
service
including charitable service;
(c) a person is said to be associated with
the
commercial
organisation
if,
disregarding any conduct constituting
an offence under this Act, such person
is a person who performs services for or
on
behalf
of
the
commercial
organisation.
Explanation 1: The capacity in which the person
performs services for or on behalf of the
commercial organisation shall not matter
irrespective of whether such person is an employee
or agent or subsidiary of such commercial
organisation.
Explanation 2: For the purpose of this section, the
term agent shall have the same meaning as
assigned to it under section 182 of the Indian
Contract Act, 1872 (9 of 1872).
Explanation 3: Whether or not the person is a
person who performs services for or on behalf of
the commercial organisation is to be determined
by reference to all the relevant circumstances and
not merely by reference to the nature of the
relationship between such person and the
commercial organisation.
Explanation 4: If the person is an employee of the
commercial organisation, it shall be presumed
unless the contrary is proved that such person is
a person who performs services for or on behalf of
the commercial organisation.
58
F. Clause 5
5.6.1
The language of this provision is confusing,
as it combines the offences of abetment and attempt.
Since the ingredients for these offences differ, it is
recommended that this provision be split into two
separate provisions, detailing each offence separately.
Further, the penalty for the offence of attempt must be
less than the penalty for the offence itself.
5.6.2
Suggested draft:
5. Abetment.
Whoever abets the commission of an offence under
section 3 or section 4 of this Act shall be
punishable with imprisonment for a term which
shall not be less than three years but which may
extend to seven years and shall also be liable to
fine.
6. Attempt.
Whoever attempts to commit an offence under
section 3 or section 4 of this Act shall be
punishable with imprisonment for a term which
shall not be less than one year but which may
extend to three years and shall also be liable to
fine.
G. Clause 6
5.7.1
This provision has been inserted in context of
Indias declaration regarding the applicability of Articles
45 and 46 of the UNCAC (see discussion in chapter 2 of
this Report). At the time of ratification of the UNCAC,
59
India declared, by way of a Notification, that

international cooperation for mutual legal assistance
under Articles 45 and 46 of the Convention shall be
afforded through applicable bilateral Agreements, and
in cases where a bilateral agreement does not cover the
mutual legal assistance sought by the requesting State,
it shall be provided under the Convention on reciprocal
basis. Clause 6(1) captures this situation. However,
clause 6(2) is not required, and may be deleted. The
provision will also be renumbered, in accordance with
the revised draft.
5.7.2
Suggested draft:
9. Agreements with foreign countries
The Central Government may enter into an
agreement with the Government of any country
outside India for
(a) enforcing the provisions of this
Act;
(b) exchange of information for the
prevention of any offence under
this
Act
or
under
the
corresponding law in force in that
country or investigation of cases
relating to any offence under this
Act, and may, by notification,
make such provisions as may be
necessary for implementing the
agreement
(including mutual
assistance).
H. Clause 7
5.8.1
This provision attempts to unilaterally
amend all extradition treaties that India has entered
60
into with other countries, to deem offences under this

law as extraditable offences. This is in violation of Article
39 of the Vienna Convention of the Law on Treaties
which provides that a treaty may be amended only by
agreement between the parties to the treaty (and not by
domestic legislation).
5.8.2
Further, Paragraphs (4), (5) and (7) of Article
44 of the UNCAC (Extradition) already deem all
offences under the UNCAC to be offences that are
extraditable. The Indian law makes the offences under
the UNCAC punishable under domestic law, and in
context of the same, this provision is redundant, and
not required.
5.8.3
Suggested draft:
This provision should be deleted.
I. Clause 8
5.9.1
The Commission has recommended that the
definition of the term contracting State be deleted from
clause 2(1)(c) (see clause 2). For the purpose of this
provision, therefore, the term contracting State should
be replaced with concerned State, which will be
circumstances. The provision will also be renumbered,
in accordance with the revised draft.
5.9.2
Suggested draft:
10. Letter of request to a concerned State in
certain cases.
(1) Notwithstanding anything contained in this Act
or the Code of Criminal Procedure, 1973 (2 of
1974), if, in the course of an investigation into an
offence or other proceedings under this Act, an
application is made to a Special Judge by the
Investigating Officer or any officer superior in rank
to the Investigating Officer that any evidence is
61
required in connection with investigation into an

offence or proceedings under this Act and he is of
the opinion that such evidence may be available in
any place in a concerned State, and the Special
Judge, on being satisfied that such evidence is
required in connection with the investigation into
an offence or proceedings under this Act, may
issue a letter of request to a court or an authority
in the concerned State competent to deal with
such request to
(i) examine facts and circumstances of the
case,
(ii) take such steps as the Special Judge may
specify in such letter of request, and
(iii) forward all the evidence so taken or
collected to the Special Judge issuing such
letter of request.
(2) The letter of request shall be transmitted in
such manner as the Central Government may
specify in this behalf.
(3) Every statement recorded or document or thing
received under sub-section (1) shall be deemed to
be the evidence collected during the course of
investigation.
J. Clause 9
5.10.1
5.10.2
Suggested draft:
62
11. Assistance to a concerned State in certain

cases.
Where a letter of request is received by the Central
Government from a court or an authority in a
concerned State requesting for investigation into
an offence or proceedings under this Act and
forwarding to such court or authority any evidence
connected therewith, the Central Government may
forward such letter of request to the Special Judge
or to any authority under the Act, as it thinks fit,
for execution of such request in accordance with
the provisions of this Act or, as the case may be,
any other law for the time being in force.
K. Clause 10
5.11.1
clause 2(1)(c) (see clause 2 above). For the purpose of
this provision, therefore, the term contracting State
should be replaced with concerned State, which will
be interpreted appropriately as required by the
5.11.2
Suggested draft:
12. Reciprocal arrangements for processes and

assistance for transfer of accused persons.
(1) Where a Special Judge, in relation to an offence
punishable under section 3 or section 4, desires
(a) a summons to an accused person; or
(b) a warrant for the arrest of an accused
person; or
(c) a summons to any person requiring him
to attend and produce a document or other
thing or to produce it; or
(d) a search warrant,
63
issued by it shall be served or executed at any

place in any concerned State, it shall send such
summons or warrant in duplicate in such form, to
such court, Judge or Magistrate through such
authorities, as the Central Government may, by
notification, specify in this behalf and that court,
Judge or Magistrate, as the case may be, shall
cause the same to be executed.
(2) Where a Special Judge, in relation to an offence
punishable under section 4 has received for
service or execution
(b) a warrant for the arrest of an accused
person; or
(c) a summons to any person requiring him
to attend and produce a document or other
thing, or to produce it; or
issued by a court, Judge or Magistrate in a
concerned State, it shall, cause the same to be
served or executed as if it were a summons or
warrant received by it from another court in the
said territories for service or execution within its
local jurisdiction; and where
(i) a warrant of arrest has been executed, the
person arrested shall be dealt with in
accordance with the procedure specified
under the Code of Criminal Procedure, 1973
(2 of 1974);
(ii) a search warrant has been executed, the
things found in this search shall, so far as
possible, be dealt with in accordance with the
procedure specified under the Code of
Criminal Procedure, 1973 (2 of 1974):
Provided that in a case where a summon or
search warrant received from a concerned
State has been executed, the documents or
64
other things produced or things found in the

search shall be forwarded to the court issuing
the summon or search warrant through such
authority as the Central Government may, by
notification, specify in this behalf.
(3) Where a person transferred to a concerned
State pursuant to sub-section (2) is a prisoner in
India, the Special Judge or the Central
Government may impose such conditions as that
court or Government deems fit.
(4) Where the person transferred to India pursuant
to sub-section (1) is a prisoner in a concerned
State, the Special Judge in India shall ensure that
the conditions subject to which the prisoner is
transferred to India are complied with and such
prisoner shall be kept in such custody subject to
such conditions as the Central Government may
direct in writing.
L. Clause 11
5.12.1
5.12.2
Suggested draft:
13. Procedure in respect of letter of request.

Every letter of request, summons or warrant,
received by the Central Government from, and
every letter of request, summons or warrant, to be
transmitted to a concerned State under this
Chapter shall be transmitted to a concerned State
65
or, as the case may be, sent to the concerned court

in India in such form and in such manner as the
Central Government may, by notification, specify
in this behalf.
M.Clause 12
5.13.1
clause 2(1)(c) (see clause 2 above). For the purpose of
this provision, therefore, the term contracting State
should be replaced with concerned State, which will
be interpreted appropriately as required by the
5.13.2
Suggested draft:
13. Attachment, seizure and confiscation, etc.

of property in a concerned State or India.
(1) Where the property is suspected to be in a
concerned State, the Special Judge, on an
application by an officer authorised by the Central
Government, may issue a letter of request to a
court or an authority in the concerned State for
execution of attachment or confiscation of the
property in the concerned State.
(2) Where a letter of request is received by the
Central Government from a court or an authority
in a concerned State requesting attachment or
confiscation of the property in India, derived or
obtained, directly or indirectly, by any person from
the commission of an offence under section 3 or
section 4 committed in that concerned State, the
Central Government may forward such letter of
request to the Special Judge for execution in
accordance with the provisions of this Act.
66
(3) The Special Judge shall, on receipt of a letter of

request under sub-section (2), direct any authority
to take all steps necessary for tracing and
identifying such property.
(4) The steps referred to in sub-section (3) may
include any inquiry, investigation or survey in
respect of any person, place, property, assets,
documents, books of account in any bank or
public financial institutions or any other relevant
matters.
(5) Any inquiry, investigation or survey referred to
in sub-section (4) shall be carried out by an
authority mentioned in sub-section (3) in
accordance with such directions issued in
N. Clause 13
5.14
This provision may be retained as it is. The
the revised draft.
O. Clause 14
5.15
the revised draft.
P. Clause 15
5.16
the revised draft.
Q. Clause 16
67
5.17
the revised draft.
R. Clause 17
5.18.1
The latter part of this provision, which states
that nothing contained herein shall exempt any foreign
public official or official of public international
organisation from any proceeding which might, apart
from this Act, be instituted against him, is
unnecessary, and may be deleted. The provision will
also be renumbered, in accordance with the revised
draft.
5.18.2
Suggested draft:
19. Act to be in addition to any other law.

The provisions of this Act shall be in addition to,
and not in derogation of, any other law for the time
being in force.
S. Clause 18
5.19.1
This provision will apply only if the conduct
constituting the offence takes place wholly or partly in
India, and in this regard, its presence is guided by the
necessity of clause 3 of the 2015 Bill. If clause 3 is
deleted (see clause 3), this provision may also be
deleted. In any event in light of the recommendation of
the Commission to delete the definition of the term
contracting State from clause 2(1)(c) (see clause 2), the
term contracting State should be replaced with
concerned State, which will be interpreted
appropriately as required by the circumstances. The
the revised draft.
5.19.2
Suggested draft:
68
If retained the suggested draft would be as follows:

20. Proceedings under this Act to be taken in
consultation with concerned State against
foreign public official to whom privileges and
immunities under any law or Convention or
treaty apply.
In case any foreign public official or official of
public international organisation is alleged to have
committed an offence under this Act to whom
certain privileges and immunities applies under
the United Nations (Privileges and Immunities)
Act, 1947 or the International Finance Corporation
(Status, Immunities and Privileges) Act, 1958, or
the
International
Development
Association
(Status, Immunities and Privileges) Act, 1960, or
the Diplomatic Relations (Vienna Convention) Act,
1972, or under any other law for the time being in
force or under any Convention or treaty, the
Central Government shall, in consultation with the
concerned
State
or
public
international
organisation, as the case may be, take adequate
measures for proceeding under this Act against
such public official.
T. Clause 19
5.20
the revised draft.
U. Clause 20
5.21.1
This provision will be retained as it is, except
that the reference to clause 4(2) will be corrected to refer
to the (new) clause 8(4). The provision will also be
renumbered, in accordance with the revised draft
69
5.21.2
Suggested draft:
22. Power to make rules.

(1) The Central Government may, by notification,
make rules for carrying out the provisions of this
Act.
(2) In particular, and without prejudice to the
generality of the foregoing power, such rules may
provide for all or any of the following matters,
namely:
(a) framing of guidelines to enhance
compliance with the provisions of section 8
by the commercial organizations under subsection (4) of section 8;
(b) any other matter which is to be, or may
be, prescribed, or in respect of which
provision is to be, or may be, made by rules.
V. Clause 21
5.22
the revised draft.
W.Clause 22
5.23
the revised draft.
X. Schedule
5.24.1
The reference to the relevant provision
dealing with the amendment of certain enactments
should be corrected to refer to the correct provision as
renumbered and provided in the recommended draft of
the Commission.
70
5.24.2
Part II of the Schedule dealing with the
Amendment of the Schedule of the Prevention of MoneyLaundering Act, 2002 (15 of 2003), will change in
accordance with the revised scheme for offences,
separating the offence for abetment and attempt, as
recommended by the Commission.
5.24.3
Suggested draft:
THE SCHEDULE
(See Section 24)
AMENDMENT OF CERTAIN ENACTMENTS
PART I
THE PREVENTION OF CORRUPTION ACT, 1988
(49 of 1988)
Amendment to Section 3
In section 3, in sub-section (1), in clause (a), for
the words any offence punishable under this Act,
the words and figures any offence punishable
under this Act or the Prevention of Bribery of
Foreign Public Officials and Officials of Public
International Organisations Act, 2015 shall be
substituted.
PART II
THE PREVENTION OF MONEY LAUNDERING ACT, 2002
(15 of 2003)
Amendment of Schedule
In the Schedule, in Part A, after paragraph 8, the
following paragraph shall be inserted, namely:Paragraph 8A
The Prevention of Bribery of Foreign Public
Officials and Officials of Public International
Organisations Act, 2015.
71
Section
3
5
6
Description of Offences
Prohibition for accepting gratification by a
Foreign Public Official or an Official of a
Public International Organisation
Prohibition for giving gratification to a
Foreign Public Official or an Official of a
Public International Organisation
Abetment
Attempt
Sd/[Justice A.P. Shah]
Chairman
Sd/-
[Justice S.N. Kapoor]

Member
Sd/-
[Prof. (Dr.) Mool Chand Sharma]

Member
Sd/[P.K. Malhotra]
Member (Ex-officio)
Sd/-
[Justice Usha Mehra]

Member
Sd/[Dr. Sanjay Singh]

Member (Ex-officio)
[Dr. G. Narayana Raju]

Member-Secretary
72
Annexure
REVISED DRAFT OF THE PREVENTION OF BRIBERY OF FOREIGN PUBLIC
OFFICIALS AND OFFICIALS OF PUBLIC INTERNATIONAL ORGANISATIONS
BILL, 2015
Having regard to the discussion and amendments proposed to

the 2015 Bill, the Commission suggests the following revised
draft of the Prevention of Bribery of Foreign Public Officials and
Officials of Public International Organisations Bill, 2015.
THE PREVENTION OF BRIBERY OF FOREIGN PUBLIC
OFFICIALS AND OFFICIALS OF PUBLIC INTERNATIONAL
A
BILL
to prevent corruption in relation to bribery of foreign public officials
and officials of public international organisations and for matters
connected therewith or incidental thereto.
India has signed the United Nations Convention Against
Corruption on 9th December, 2005 and ratified the same on 9th
May, 2011;
WHEREAS
AND WHEREAS this Convention expresses concern about the

seriousness of problems and threats posed by corruption to the
stability and security of societies, undermining the institutions
and values of democracy, ethical values and justice and
jeopardising sustainable development and the rule of law; and
about cases of corruption that involve vast quantities of assets,
which may constitute a substantial portion of the resources of
States, and that threaten the political stability and sustainable
development of those States;
AND WHEREAS in terms of Article 16 of this Convention, each State
Party is required to adopt such legislative and other measures,
as may be necessary to establish the bribery of foreign public
officials and officials of public international organisations, as a
criminal offence.
73
BE it enacted by Parliament in the Sixty-sixth Year of the

Republic of India as follows:CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
(1) This Act may be called the Prevention of Bribery of Foreign
Public Officials and Officials of Public International
Organisations Act, 2015.
(2) It extends to the whole of India, and applies
(a) when the conduct constituting the offence under the Act
occurs:
(i) wholly or partly in India; or
(ii) wholly or partly on board an aircraft or ship
registered in India at the time of the commission of
the offence;
(b) when the conduct constituting the offence under the Act
occurs wholly outside India, and the offence is committed
by:
(i) a person who is an Indian citizen;
(ii) a person who is a permanent resident of India; or
(iii)a person that is a body corporate incorporated by or
under the laws of India.
Explanation 1: For the purposes of clause (b), the expression
permanent resident shall have the same meaning as assigned
to it under the Income Tax Act, 1961 (43 of 1961).
Explanation 2: When the conduct constituting an offence occurs
wholly outside India, no proceedings under this Act shall
commence without the previous sanction of the Central
Government.
(3) It shall come into force on such date as the Central
Government may, by notification, appoint; and different dates
may be appointed for different provisions of this Act and any
reference in any such provision to the commencement of this Act
shall be construed as a reference to the coming into force of that
provision.
2. Definitions.
(1) In this Act, unless the context otherwise requires,(a) Convention means the United Nations Convention
Against Corruption adopted by the Resolutions 58/4 of
74
31st October, 2003 of the General Assembly of the

United Nations;
(b) foreign country means a country other than India, and
includes:
(i) any political subdivision of that country;
(ii) the government, and any department or branch of
the government, of that country or of a political
subdivision of that country; and
(iii)any agency of that country or of a political
subdivision of that country;
(c) foreign public official means:
(i) a person who holds a legislative, executive,
administrative or judicial position of a foreign
country; or
(ii) a person who performs public duties or public
functions for a foreign country, including a person
employed by a board, commission, corporation or
other body or authority that is established to perform
such duty or function on behalf of the foreign
country, or is performing such duty or function;
Explanation: For the purpose of this definition:
(A) public duty means a duty in the discharge of
which the State, the public or the community
at large has an interest; and
(B) public function means an act or duty of a
foreign public official in his capacity as such;
(d) notification means a notification published in the
Official Gazette;
(e) official of a public international organisation means an
international civil servant or any person who is
authorised by such an organisation to act on behalf of
that organisation;
(f) public
international
organisation
means
an
organisation whose members are any of the following:
75
(i) countries or territories;

(ii) governments of countries or territories;
(iii)other public international organisations; or
(iv) a mixture of any of the above;
(g) Special Judge means the Special Judge appointed
under section 3 of the Prevention of Corruption Act,
1988 (49 of 1988);
(h) undue advantage means any gratification, benefit or
advantage, property or interest in such property,
reward, fee, valuable security or gift or any other
valuable thing (other than legal remuneration), whether
pecuniary or non-pecuniary, tangible or intangible;
Explanation: For the purpose of this definition, legal
remuneration is not restricted to remuneration paid to a
organisation, but includes all remuneration which he is
permitted to receive by the foreign country or the public
international organisation which he serves.
(2) The words and expressions used under this Act but not
defined and defined under the Prevention of Corruption Act, 1988
(49 of 1988) shall have the meanings respectively assigned to
them under that Act.
CHAPTER II
OFFENCES AND PENALTIES OF BRIBERY OF FOREIGN OFFICIALS AND
OFFICIALS OF PUBLIC INTERNATIONAL ORGANISATIONS
3. Prohibition for accepting gratification by foreign public
officials or officials of public international organisations.
Whoever, being a foreign public official or official of public
international organisation, intentionally accepts or obtains or
agrees to accept from any person, directly or indirectly, for
himself or for any other person or entity, any undue advantage
other than legal remuneration, as a motive or reward for doing or
forbearing to do any official act or for showing or forbearing to
show, in the exercise of his official functions, favour or disfavour
to any person or entity for rendering or attempting to render any
service or disservice to any person or entity, shall be punishable
with imprisonment which shall not be less than three years but
which may extend to seven years and shall also be liable to fine.
76
4. Prohibition for giving gratification to foreign public official

or officials of public international organisations.
Whoever, in relation to the conduct of international business in
order to obtain or retain business or to obtain any advantage
relating thereto, intentionally, offers or promises to offer, gives or
promises to give, directly or indirectly, any undue advantage, to
any foreign public official or official of public international
organisation, for himself or herself or for another person or entity,
in order that such official, act or refrain from acting in the
exercise of his or her official duties, shall be punishable with
imprisonment for a term which shall not be less than three years
but which may extend to seven years and shall also be liable to
fine.
5. Abetment.
Whoever abets the commission of an offence under section 3 or
section 4 of this Act shall be punishable with imprisonment for a
term which shall not be less than three years but which may
extend to seven years and shall also be liable to fine.
6. Attempt.
Whoever attempts to commit an offence under section 3 or
section 4 of this Act shall be punishable with imprisonment for a
term which shall not be less than one year but which may extend
to three years and shall also be liable to fine.
7. Persons not guilty of offence in certain circumstances.
(1) No person is guilty of an offence under this Act if the offer,
promise or giving of any advantage, which was made to a foreign
public official or official of a public international organisation,
was a reasonable and bona fide expenditure, such as travel and
lodging expenses, incurred by or on behalf of such foreign public
official or official of a public international organisation and was
directly related to:
(a) the promotion, demonstration, or explanation of
products or services; or
(b) the execution or performance of a contract with a
foreign country or public international organisation.
promise or giving of any advantage is permitted under the laws of
the foreign country or public international organization for which
the foreign public official or official of a public international
organisation performs duties or functions.
77

promise or giving of any advantage, is made to expedite or secure
the performance by a foreign public official or official of a public
international organisation of any act of a routine nature that is
part of the duties or functions of the foreign public official or
official of the public international organisation, such as:
(a) the issuance of a permit, licence or other document
to qualify a person to do business;
(b) the processing of official documents, such as visas
and work permits;
(c) the provision of services normally offered to the
public, such as mail pick-up and delivery,
telecommunication services and power and water
supply; and
(d) the provision of services normally provided as
required, such as police protection, loading and
unloading of cargo, the protection of perishable
products or commodities from deterioration or the
scheduling of inspections related to contract
performance or transit of goods.
Explanation: For removal of doubts, it is clarified that a decision
about whether to award new business; or to continue existing
business with a particular person; or the terms of such new or
existing business; shall not be regarded as any act of a routine
nature for the purpose of sub-section (3).
8. Liability of commercial organisations for offences under
this Act.
(1) When an offence under this Act has been committed by a
commercial organisation, such commercial organisation shall be
punishable with fine.
(2) Where an offence under this Act is committed by a commercial
organisation, and such offence is proved to have been committed
with the consent or connivance of any director, manager,
secretary or other officer of the commercial organisation, such
director, manager, secretary or other officer shall be guilty of the
offence and shall be liable to be proceeded against and
punishable with imprisonment which shall not be less than the
punishment prescribed for such offence under this Act.
(3) When an offence under this Act is committed by any person
associated with the commercial organisation, the commercial
78
organisation shall be guilty of an offence and shall be punishable

with fine:
Provided that it shall be a defence for the commercial
organisation to prove that it had in place adequate procedures
designed to prevent persons associated with it from undertaking
such conduct.
(4) The Central Government may, with a view to enhancing
compliance with this section by commercial organisations,
prescribe such guidelines about adequate procedures as may be
necessary, following a consultation process in which the views of
all the interested stakeholders are obtained through public
notice.
(5) For the purposes of this section:
(a) commercial organisation means:
(i) a body which is incorporated in India and
which carries on a business, whether in India
or outside India;
(ii) any other body which is incorporated outside
India and which carries on a business, or a
part of a business, in any part of India;
(iii) a partnership firm or any association of
persons formed in India and which carries on
a business, whether in India or outside India;
or
(iv) any other partnership or association of
persons which is formed outside India and
which carries on a business, or part of a
business, in any part of India;
(b) business includes a trade or profession
providing service including charitable service;
or
(c) a person is said to be associated with the commercial

organisation
if,
disregarding
any
conduct
constituting an offence under this Act, such person
is a person who performs services for or on behalf of
the commercial organisation.
Explanation 1: The capacity in which the person performs
services for or on behalf of the commercial organisation shall not
matter irrespective of whether such person is an employee or
agent or subsidiary of such commercial organisation.
79
Explanation 2: For the purpose of this section, the term agent

shall have the same meaning as assigned to it under section 182
of the Indian Contract Act, 1872 (9 of 1872).
Explanation 3: Whether or not the person is a person who
performs services for or on behalf of the commercial organisation
is to be determined by reference to all the relevant circumstances
and not merely by reference to the nature of the relationship
between such person and the commercial organisation.
Explanation 4: If the person is an employee of the commercial
organisation, it shall be presumed unless the contrary is proved
that such person is a person who performs services for or on
behalf of the commercial organisation.
9. Agreements with foreign countries.
The Central Government may enter into an agreement with the
Government of any country outside India for
(a) enforcing the provisions of this Act;
(b) exchange of information for the prevention of any
offence under this Act or under the corresponding
law in force in that country or investigation of cases
relating to any offence under this Act, and may, by
notification, make such provisions as may be
necessary for implementing the agreement (including
mutual assistance).
10. Letter of request to a concerned State in certain cases.
(1) Notwithstanding anything contained in this Act or the Code of
Criminal Procedure, 1973 (2 of 1974), if, in the course of an
investigation into an offence or other proceedings under this Act,
an application is made to a Special Judge by the Investigating
Officer or any officer superior in rank to the Investigating Officer
that any evidence is required in connection with investigation into
an offence or proceedings under this Act and he is of the opinion
that such evidence may be available in any place in a concerned
State, and the Special Judge, on being satisfied that such
evidence is required in connection with the investigation into an
offence or proceedings under this Act, may issue a letter of
request to a court or an authority in the concerned State
competent to deal with such request to
(i) examine facts and circumstances of the case,
(ii) take such steps as the Special Judge may specify in
such letter of request, and
(iii) forward all the evidence so taken or collected to the
Special Judge issuing such letter of request.
80
(2) The letter of request shall be transmitted in such manner as

the Central Government may specify in this behalf.
(3) Every statement recorded or document or thing received under
sub-section (1) shall be deemed to be the evidence collected
during the course of investigation.
11. Assistance to a concerned State in certain cases.
Where a letter of request is received by the Central Government
from a court or an authority in a concerned State requesting for
investigation into an offence or proceedings under this Act and
forwarding to such court or authority any evidence connected
therewith, the Central Government may forward such letter of
request to the Special Judge or to any authority under the Act,
as it thinks fit, for execution of such request in accordance with
the provisions of this Act or, as the case may be, any other law
for the time being in force.
12. Reciprocal arrangements for processes and assistance for
transfer of accused persons.
(1) Where a Special Judge, in relation to an offence punishable
under section 3 or section 4, desires
(b) a warrant for the arrest of an accused person; or
(c) a summons to any person requiring him to attend and
produce a document or other thing or to produce it; or
issued by it shall be served or executed at any place in any
concerned State, it shall send such summons or warrant in
duplicate in such form, to such court, Judge or Magistrate
through such authorities, as the Central Government may, by
notification, specify in this behalf and that court, Judge or
Magistrate, as the case may be, shall cause the same to be
executed.
(2) Where a Special Judge, in relation to an offence punishable
under section 4 has received for service or execution
(b) a warrant for the arrest of an accused person; or
(c) a summons to any person requiring him to attend and
produce a document or other thing, or to produce it; or
issued by a court, Judge or Magistrate in a concerned State, it
shall, cause the same to be served or executed as if it were a
summons or warrant received by it from another court in the said
territories for service or execution within its local jurisdiction;
and where
81
(i) a warrant of arrest has been executed, the person

arrested shall be dealt with in accordance with the
procedure specified under the Code of Criminal Procedure,
1973 (2 of 1974);
(ii) a search warrant has been executed, the things found
in this search shall, so far as possible, be dealt with in
accordance with the procedure specified under the Code of
Criminal Procedure, 1973 (2 of 1974):
Provided that in a case where a summon or search warrant
received from a concerned State has been executed, the
documents or other things produced or things found in the
search shall be forwarded to the court issuing the summon
or search warrant through such authority as the Central
Government may, by notification, specify in this behalf.
(3) Where a person transferred to a concerned State pursuant to
sub-section (2) is a prisoner in India, the Special Judge or the
Central Government may impose such conditions as that court
or Government deems fit.
(4) Where the person transferred to India pursuant to sub-section
(1) is a prisoner in a concerned State, the Special Judge in India
shall ensure that the conditions subject to which the prisoner is
transferred to India are complied with and such prisoner shall be
kept in such custody subject to such conditions as the Central
Government may direct in writing.
13. Procedure in respect of letter of request.
Every letter of request, summons or warrant, received by the
Central Government from, and every letter of request, summons
or warrant, to be transmitted to a concerned State under this
Chapter shall be transmitted to a concerned State or, as the case
may be, sent to the concerned court in India in such form and in
such manner as the Central Government may, by notification,
specify in this behalf.
14. Attachment, seizure and confiscation, etc. of property in
a concerned State or India.
(1) Where the property is suspected to be in a concerned State,
the Special Judge, on an application by an officer authorised by
the Central Government, may issue a letter of request to a court
or an authority in the concerned State for execution of
attachment or confiscation of the property in the concerned State.
(2) Where a letter of request is received by the Central
Government from a court or an authority in a concerned State
requesting attachment or confiscation of the property in India,
derived or obtained, directly or indirectly, by any person from the
82
commission of an offence under section 3 or section 4 committed

in that concerned State, the Central Government may forward
such letter of request to the Special Judge for execution in
(3) The Special Judge shall, on receipt of a letter of request under
sub-section (2), direct any authority to take all steps necessary
for tracing and identifying such property.
(4) The steps referred to in sub-section (3) may include any
inquiry, investigation or survey in respect of any person, place,
property, assets, documents, books of account in any bank or
public financial institutions or any other relevant matters.
(5) Any inquiry, investigation or survey referred to in sub-section
(4) shall be carried out by an authority mentioned in sub-section
(3) in accordance with such directions issued in accordance with
the provisions of this Act.
15. Provisions of Criminal Law Amendment Ordinance, 1994
to apply to attachment under this Act.
Save as otherwise provided under this Act, or the Prevention of
Money-laundering Act, 2002 (15 of 2003) the provisions of the
Criminal Law Amendment Ordinance 1944 (Ord. 38 of 1944), as
amended by section 29 of the Prevention of Corruption Act, 1988
(49 of 1988), shall, as far as may be, apply to the attachment,
administration of attached property and execution of order of
attachment or confiscation of the property under this Act.
16. Certain provisions of Act 49 of 1988 to apply
Save as otherwise provided under this Act, the provisions of the
Prevention of Corruption Act, 1988 and the rules made
thereunder, (including those relating to appointment of Special
Judges under Chapter II and investigation into the cases and
inspection of bankers books under Chapter IV of that Act), shall,
so far as may be, apply in relation to the offence under this Act
as they apply in relationto the offence under the Prevention of
Corruption Act, 1988.
17. Military, Naval and Air Force or other laws not to be
affected.
(1) Nothing in this Act shall affect the jurisdiction exercisable by,
or the procedure applicable to, any court or other authority under
the Army Act, 1950 (45 of 1950), the Air force Act, 1950 (46 of
1950), the Navy Act, 1957 (62 of 1957), the Border Security Force
Act, 1968 (47 of 1968), the Coast Guard Act, 1978 (30 of 1978)
and the National Security Guard Act, 1986 (47 of 1986).
(2) For the removal of doubts, it is hereby declared that for the
purposes of any such law as is referred to in sub-section (1), the
83
court of a Special Judge shall be deemed to be a court of ordinary

criminal justice.
18. Appeal and Revision.

Subject to the provisions of this Act, the High Court may exercise,
so far as they may be applicable, all the powers of appeal and
revision conferred by the Code of Criminal Procedure, 1973 (2 of
1974) on a High Court as if the court of the Special Judge were a
Court of Session trying cases within the local limits of the High
Court.
19. Act to be in addition to any other law.
The provisions of this Act shall be in addition to, and not in
derogation of, any other law for the time being in force.
20. Proceedings under this Act to be taken in consultation
with concerned State against foreign public official to whom
privileges and immunities under any law or Convention or
treaty apply
In case any foreign public official or official of public international
organisation is alleged to have committed an offence under this
Act to whom certain privileges and immunities applies under the
United Nations (Privileges and Immunities) Act, 1947 or the
International Finance Corporation (Status, Immunities and
Privileges) Act, 1958, or the International Development
Association (Status, Immunities and Privileges) Act, 1960, or the
Diplomatic Relations (Vienna Convention) Act, 1972, or under
any other law for the time being in force or under any Convention
or treaty, the Central Government shall, in consultation with the
concerned State or public international organisation, as the case
may be, take adequate measures for proceeding under this Act
against such public official.
22. Code of Criminal Procedure, 1973 to apply subject to
certain modifications
Save as otherwise provided under this Act, the provisions of the
Code of Criminal Procedure, 1973 (2 of 1974), as amended by
section 22 of the Prevention of Corruption Act, 1988 (49 of 1988)
shall have effect in their application in relation to any proceeding
in relation to an offence punishable under this Act.
22. Power to make rules.
(1) The Central Government may, by notification, make rules for
carrying out the provisions of this Act.
84
(2) In particular, and without prejudice to the generality of the

foregoing power, such rules may provide for all or any of the
following matters, namely:
(a) framing of guidelines to enhance compliance with the
provisions of section 8 by the commercial organizations
under sub-section (4) of section 8;
(b) any other matter which is to be, or may be, prescribed,
or in respect of which provision is to be, or may be, made
by rules.
23. Rules and notification to be laid before Parliament.
Every rule made by the Central Government, or notification
issued under this Act shall be laid, as soon as may be after it is
made, before each House of Parliament, while it is in session, for
a total period of thirty days which may be comprised in one
session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any
modification in the rule, or notification or both Houses agree that
the rule or notification should not be made or issued, the rule, or
notification shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however, that any
such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule or
notification.
24. Amendment of certain enactments.
The enactments specified in the Schedule to this Act shall be
amended in the manner specified therein and such amendments
shall take effect on the date of commencement of this Act.
THE SCHEDULE
(See Section 24)
AMENDMENT OF CERTAIN ENACTMENTS
PART I
THE PREVENTION OF CORRUPTION ACT, 1988
(49 of 1988)
Amendment to Section 3
In section 3, in sub-section (1), in clause (a), for the words any
offence punishable under this Act, the words and figures any
offence punishable under this Act or the Prevention of Bribery of
Foreign Public Officials and Officials of Public International
Organisations Act, 2015 shall be substituted.
PART II
85
THE PREVENTION OF MONEY LAUNDERING ACT, 2002

(15 of 2003)
Amendment of Schedule
In the Schedule, in Part A, after paragraph 8, the following
paragraph shall be inserted, namely:Paragraph 8A
The Prevention of Bribery of Foreign Public Officials and Officials
of Public International Organisations Act, 2015.
Section
Description of Offences
3
Prohibition for accepting gratification by a Foreign
Public Official or an Official of a Public
International Organisation
4
Prohibition for giving gratification to a Foreign
Public Official or an Official of a Public
International Organisation
5
Abetment
6
Attempt
86

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GOVERNMENT OF INDIA

LAW COMMISSION OF INDIA

Dear Shri Sadananda Gowda ji,

Republic of Korea (South Korea)

Clause by - Clause Analysis of

of a public international organisation was specifically

Department Related Parliamentary Standing Committee on Personnel, Public Grievances,

Officials of Public International OrganisationsA

measures, criminalisation of conduct, international

Ophelie Brunelle-Quraishi (n 7).

international organisations under Article 16. Thus the

Legislative Guide on the UNCAC (n 8).

Legislative Guide on the UNCAC (n 8).

Legislative Guide on the UNCAC (n 8).

Each State Party shall adopt such legislative

Michael Kubiciel (n 7).

Legislative Guide on the UNCAC (n 8).

establish as a criminal offence, when

of Article 16 only insists upon States Parties to consider

Travaux Prparatoires (n 2).

Travaux Prparatoires (n 2).

Travaux Prparatoires (n 2).

Travaux Prparatoires (n 2).

that immunities enjoyed by foreign public officials and

Travaux Prparatoires (n 2).

Legislative Guide on the UNCAC (n 8).

Legislative Guide on the UNCAC (n 8).

1. States Parties shall carry out their obligations

Legislative Guide on the UNCAC (n 8).

Legislative Guide on the UNCAC (n 8).

in the interpretation for effective prosecution under

Legislative Guide on the UNCAC (n 8).

Legislative Guide on the UNCAC (n 8).

Legislative Guide on the UNCAC (n 8).

States Parties in establishing contact with one another

a national; (2) consider enforcing sentences imposed

or party official are exempt from penalisation. For

Passive bribery of domestic public officials, which is

committed in whole or in part on the territory of Canada.

attached to the Office of the President of the Republic,

sections 214 and 161 to 165 of the Penal Code along

the legislature has also provided a compelling

F. Republic of Korea (South Korea)37

territoriality. In addition, the Republic of Korea also

amounts to an abuse of power or breach of trust. A

South Africa who commit crimes in foreign jurisdictions

national anti-corruption laws allows for the prosecution

(FBI), International Anticorruption Unit and the

federal law enforcement authorities, depending upon

businesses abroad. In addition, acts committed in

the Serious and Organised Crime Division within the

offerings can be interpreted to not constitute bribery

of the provisions on bribery. The defences applicable to

organisation had adequate procedures to prevent

20 and 21 deal with the scope and procedure for

AND WHEREAS this Convention expresses concern about

Clauses 1(1) and 1(3) may be retained as they

affairs of other States. Article 4(2) further clarifies that

1. Short title, extent and commencement.