Pictured above: Christopher Hallam
A Derby lawyer is warning companies to act now in order to avoid
falling foul of the UK's tough new anti-corruption laws.
Christopher Hallam, senior associate at Robinsons Solicitors, in
Friar Gate, says that businesses should already be looking at
tightening their compliance procedures ahead of the introduction of
the Bribery Act later this year.
The Act, which aims to modernise UK anti-corruption and bribery
law, replaces the common law offences and old corruption
legislation with a new set of strict liability bribery
offences.
It makes it illegal to bribe someone, accept a bribe, bribe a
foreign public official and, for businesses, fail to prevent a
bribe being made. A bribe is defined as something offered in return
for a business advantage.
The Act applies to companies and businesses operating not only
in the United Kingdom but overseas as well. Companies are liable
for the actions of employees whether in the UK or elsewhere.
New strict penalties are being introduced, including a maximum
10-year prison term for individuals and unlimited fines for
companies. Directors may be liable for disqualification and
companies could be barred from seeking public contracts.
Mr Hallam said that to prepare for the Act's introduction,
companies should review their internal risk policies, staff
handbooks and compliance manuals.
They should also review contracts to be made with customers,
suppliers, wholesalers, retailers, consultants, agents,
distributors and franchisees.
And they should review joint venture agreements and agreements
with sub-contractors with a view to incorporating anti-bribery and
anti-corruption laws.
Mr Hallam said: "Guidelines will be issued later in the year as
to what constitutes bribery, but it is important that companies
start to think about updating their compliance manuals, agreements
and contracts.
"Businesses may not be able to control what their staff are up
to, but since they will be liable for their actions, it will form
an important part of their defence if they can show that they had
adequate procedures designed to prevent corruption."