Corporate Alert: UK Bribery Act: Understanding & Mitigating Risks
9/8/2011
By | Susan L. Foster, Ph.D., Solicitor, England & Wales; Attorney admitted in California |
| Paul E. Pelletier, attorney admitted to practice in Massachusetts |
Companies doing business throughout the world are familiar with the US Foreign Corrupt Practices Act (FCPA), and are increasingly stepping up their compliance to deal with the US government’s continued enforcement initiatives. This July, however, the UK Bribery Act of 2010 went into effect — and with it, a new set of risks for companies with a UK presence. Unlike the Foreign Corrupt Practices Act, the UK Bribery Act is not limited to bribery of foreign officials — bribery in virtually every business situation is caught. The UK Bribery Act also differs from the US Foreign Corrupt Practices Act in that facilitation payments or “grease payments” are illegal, and the FCPA’s requirement that a bribe of a foreign official be offered “corruptly” is absent. There are steps companies can take now to mitigate their global risks, including, most significantly, implementing a global anti-bribery policy. Violations of the Bribery Act can result in criminal prosecution, with the possibility of prison sentences and/or significant fines.
