THE

BRIBERY
ACT2010

Quick start guide

 The Bribery Act 2010 – Quick start guide

The Bribery Act 2010 modernises the law

on bribery. It comes into force on 1 July
2011. This document offers a quick guide
to the things you need to know to prepare
your business for implementation.
The Government has also produced
detailed guidance about the Act and the
procedures that organisations can put in
place to prevent bribery, as well as a set
of illustrative case studies which you may
find of further assistance (available here:
www.justice.gov.uk/guidance/bribery.htm).

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The Bribery Act 2010 – Quick start guide

Key points

• This Act deals only with bribery – not other

forms of white collar crime
• Your organisation may be liable for failing to
prevent a person from bribing on your behalf
but only if that person performs services for
you in business. It is very unlikely therefore
that you will be liable for the actions of
someone who simply supplies goods to you
• There is a full defence if you can show you
had adequate procedures in place to prevent
bribery. But you do not need to put bribery
prevention procedures in place if there is no
risk of bribery on your behalf
• Hospitality is not prohibited by the Act
• Facilitation payments are bribes under the Act
just as they are under the old law

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 The Bribery Act 2010 – Quick start guide

What is covered by When could my organisation

the Act? be liable?

The Act is concerned with bribery. Very Your organisation could be liable if a very
generally, this is defined as giving someone a senior person in the organisation (for example,
financial or other advantage to encourage that a managing director) commits a bribery
person to perform their functions or activities offence. This person’s activities would then be
improperly or to reward that person for having attributed to the organisation.
already done so. So this could cover seeking
to influence a decision-maker by giving some Your organisation could also be liable where
kind of extra benefit to that decision maker someone who performs services for it – like an
rather than by what can legitimately be employee or agent – pays a bribe specifically
offered as part of a tender process. to get business, keep business, or gain a
business advantage for your organisation. But
The Act is not concerned with fraud, theft, you will have a full defence for this particular
books and record offences, Companies Act offence, and can avoid prosecution, if you can
offences, money laundering offences or show you had adequate procedures in place
competition law. Further detail about what to prevent bribery (see page 4, ‘What do I
is covered by the Act can be found in ‘The need to do to rely on the defence?’ for further
Bribery Act 2010 – Guidance about procedures information about this defence).
which relevant commercial organisations can
put into place to prevent persons associated It is important to note that no one can be
with them from bribing (section 9 of the prosecuted in England and Wales unless
Bribery Act 2010)’ – www.justice.gov.uk/ one of the two most senior prosecutors (the
guidance/bribery.htm Director of Public Prosecutions or the Director
of the Serious Fraud Office) is personally
. satisfied that a conviction is more likely than
not, and that prosecution is in the public
interest.

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The Bribery Act 2010 – Quick start guide

What do I need to do to rely on

the defence?

You will not commit the offence of failing 3 Risk Assessment: Think about the bribery
to prevent bribery if you can show that your risks you might face. For example, you
organisation had ‘adequate procedures’ in might want to do some research into the
place to prevent bribery. What counts as markets you operate in and the people you
adequate will depend on the bribery risks deal with, especially if you are entering
you face (‘How do I assess risk?’, see page 5) into new business arrangements and new
and the nature, size and complexity of your markets overseas (‘How do I assess risk’,
business. So, a small or medium sized business see page 5).
which faces minimal bribery risks will require
relatively minimal procedures to mitigate 4 Due Diligence: Knowing exactly who you
those risks. The following six principles will are dealing with can help to protect your
help you decide what, if anything, you need to organisation from taking on people who
do differently: might be less than trustworthy. You may
therefore want to ask a few questions and
1 Proportionality: The action you take should do a few checks before engaging others to
be proportionate to the risks you face and represent you in business dealings.
to the size of your business. So you might
need to do more to prevent bribery if your 5 Communication: Communicating your
organisation is large, or if you are operating policies and procedures to staff and to
in an overseas market where bribery is others who will perform services for you
known to be commonplace, compared to enhances awareness and helps to deter
what you might do if your organisation bribery by making clear the basis on which
is small, or is operating in markets where your organisation does business. You may,
bribery is not prevalent. therefore, want to think about whether
additional training or awareness raising
2 Top Level Commitment: Those at the top would be appropriate or proportionate to
of an organisation are in the best position the size and type of your business.
to ensure their organisation conducts
business without bribery. If you are running 6 Monitoring and Review: The risks you face
a business, you will want to show that you and the effectiveness of your procedures
have been active in making sure that your may change over time. You may want,
staff (including any middle management) therefore, to keep an eye on the anti-
and the key people who do business with bribery steps you have taken so that they
you and for you understand that you do not keep pace with any changes in the bribery
tolerate bribery. You may also want to get risks you face when, for example, you enter
personally involved in taking the necessary new markets.
proportionate action to address any bribery
risks.

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 The Bribery Act 2010 – Quick start guide

How do I assess risk? Do I need complex procedures in

place even if there is no risk?

Many organisations will face little or no No. If there is very little risk of bribery being
risk of bribery, especially if their business is committed on behalf of your organisation
undertaken primarily in the UK. If you operate then you may not feel the need for any
overseas, the risks may be higher. Factors procedures to prevent bribery. If, having
such as the particular country you want to do assessed the position, there is a risk of bribery
business in, the sector which you are dealing then, if you want to rely on the defence, the
in, the value and duration of your project, procedures you adopt should be proportionate
the kind of business you want to do and the to that risk.
people you engage to do your business will all
be relevant. There is no need for extensive written
documentation or policies. You may already
There are simple practical steps you can have proportionate procedures through
take to assess and mitigate risks. These are existing controls over company expenditure,
mostly obvious, and are similar to (or even accounting and commercial or agent contracts
the same as) those you probably take anyway for example. In larger organisations it will
(for example, to make sure you can trust the be important to ensure that management
people you work with). For example, you in charge of the day to day business is fully
might use simple internet searches to find out aware and committed to the objective of
about the levels of corruption or bribery in the preventing bribery. In micro-businesses it may
particular country you propose to do business be enough for simple oral reminders to key
in. You could consult UK diplomatic posts or staff about the organisation’s anti-bribery
UK Trade and Investment for advice. You could policies.
also consult business representative bodies
here and in the relevant country for up to date In addition, although parties to a contract are
local knowledge. We set out some contacts of course free to agree whatever terms are
below including a Government-sponsored appropriate, the Act does not require you to
Business Anti-Corruption Portal aimed at comply with the anti-bribery procedures of
small and medium sized businesses involved your business partners in order to be able to
in overseas trade. rely on the defence.

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The Bribery Act 2010 – Quick start guide

Do I need to do due diligence on Do I need to employ consultants

all my suppliers? or lawyers to provide advice on
the risks I face, the procedures
I adopt, or the level of due
diligence I should undertake?
You only have to think about doing due No. There is no duty to engage lawyers or
diligence on persons who will actually perform consultants in helping you assess what risks
services for you, or on your behalf. Someone you face, what procedures you might adopt
who simply supplies goods to you is unlikely or what sort of due diligence you undertake -
to do that. It is very unlikely, therefore, that especially where you consider the risks to be
you will need to consider doing due diligence low or non-existent. The Act does not require
on persons further down a supply chain. external verification of any bribery prevention
measures you have put in place.
Where you decide to undertake due diligence,
how much you need to do will depend on your
risk assessment. If you assess the risk as low
then all you may need to do is satisfy yourself
that people performing services for you (for
example, an agent) are genuine and someone
you can trust to do your business without
bribing. You could do this by making enquiries
with business contacts, local chambers of
commerce or business associations or via the
internet for example.

Where you think the risks are higher, then

you may need to do more. You might ask
your agent for a CV, financial statements or
accounts, and other references. You might
then follow those up to ensure they are
genuine. The aim is to satisfy yourself that the
person that is to represent your organisation
can be trusted not to use bribery on your
behalf, but this does not necessarily require
sophisticated and costly techniques. Personal
contact, allowing you to assess the person for
yourself, can be very helpful.

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 The Bribery Act 2010 – Quick start guide

Can I provide hospitality, What about facilitation

promotional or other business payments?
expenditure under the Act?

Yes. The Government does not intend that Facilitation payments, which are payments to
genuine hospitality or similar business induce officials to perform routine functions
expenditure that is reasonable and they are otherwise obligated to perform,
proportionate be caught by the Act, so you are bribes. There was no exemption for such
can continue to provide bona fide hospitality, payments under the previous law nor is there
promotional or other business expenditure. under the Bribery Act.

In any case where it was thought the As was the case under the old law, prosecutors
hospitality was really a cover for bribing will carefully consider all the facts and
someone, the authorities would look at such surrounding circumstances of cases which
things as the level of hospitality offered, the come to their attention to assess whether
way in which it was provided and the level of a payment amounts to a bribe and, if so,
influence the person receiving it had on the whether a prosecution is in the public interest.
business decision in question. But, as a general
proposition, hospitality or promotional You can continue to pay for legally required
expenditure which is proportionate and administrative fees or fast-track services.
reasonable given the sort of business you do These are not facilitation payments.
is very unlikely to engage the Act. So you can
continue to provide tickets to sporting events,
take clients to dinner, offer gifts to clients
as a reflection of your good relations, or pay
for reasonable travel expenses in order to
demonstrate your goods or services to clients
if that is reasonable and proportionate for
your business.

Further information
www.justice.gov.uk
www.bis.gov.uk
www.businesslink.gov.uk

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The Bribery Act 2010 – Quick start guide

www.justice.gov.uk/guidance/bribery.htm
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