In short
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UK anti-bribery laws are strict and apply to most businesses operating in or linked to the UK, including overseas businesses.
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Breaches can lead to serious criminal, financial and reputational consequences for businesses and individuals.
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Businesses can reduce risk by having proportionate policies, training, monitoring and controls in place.
Tips for businesses
Understand where bribery risks may arise in your business, including through staff, agents and suppliers. Put clear anti-bribery policies and procedures in place, backed by training and senior leadership support. Review and update your controls regularly, and take legal advice to ensure your approach is proportionate to the risks you face.
Bribery and corruption can lead to severe consequences for a business. If you operate in the UK, you must understand the bribery laws that apply to you and take practical steps to reduce the risk of breaches.
Bribery is serious and can create significant legal, financial and reputational exposure, including the potential for:
- criminal penalties;
- commercial disruption;
- brand damage; and
- loss of business.
Understanding how the UK anti-bribery rules apply to your business can help you plan properly and manage risk.
This article provides an introduction to the rules under the UK Bribery Act 2010 and outlines practical steps to help you strengthen compliance and reduce risk. You should still take legal advice to understand how the law applies to your business. If you operate overseas, you should also check whether local anti-bribery laws apply and seek advice where needed.
What Is the UK Anti-Bribery Act?
The UK Bribery Act 2010 brought earlier anti-corruption laws together and introduced a new offence for businesses that fail to prevent bribery. This applies to any business that carries all or part of its activities in the UK, even if it is based overseas.
The law has a wide reach and can apply to:
- companies and partnerships incorporated in the UK;
- individuals who are UK citizens or ordinarily resident in the UK; and
- overseas businesses and individuals, where any part of the bribery happens in the UK.
Separately, the offence of failing to prevent bribery applies to commercial organisations that carry on a business (or part of a business) in the UK.
Bribery can be carried out directly by staff or indirectly through agents, suppliers, or other third parties acting on an organisation’s behalf. A bribe is not limited to cash. It can include gifts, hospitality, travel, donations, or anything else of value if it is intended to influence behaviour improperly.
The main offences under the Act include:
- Offering, promising or giving a bribe;
- requesting or accepting a bribe;
- bribing a foreign public official to obtain business advantage; and
- failing to prevent bribery by someone linked to the business.
Penalties and Business Consequences
A commercial organisation may defend against a failure to prevent bribery charges by demonstrating that (at the relevant time) it had adequate procedures in place to prevent bribery by its associated persons as proportionate to the relevant bribery risks faced.
Individuals convicted of bribery offences can face up to ten years in prison and unlimited fines. Businesses can receive:
- unlimited fines;
- confiscation orders; and
- restrictions on their activities.
A business can defend a “failure to prevent bribery” charge if it can show it had reasonable procedures in place to stop bribery, based on the risks it faces.
Other laws also create related financial crime duties, including the Criminal Finances Act 2017 and the Economic Crime and Corporate Transparency Act 2023. In particular, larger organisations should be aware of the legal offence of failing to prevent fraud. Organisations should take legal advice to understand their scope and how these rules apply.
Continue reading this article below the formHow Can Your Business Reduce Its Bribery Risk?
To reduce the risk of bribery, your organisation should understand exactly where risks lie. This requires looking at how and where you operate, for example:
- the countries you do business in;
- your industry;
- the types of customers and business partners you work with; and
- how much you rely on third parties.
To identify potential misconduct, an effective programme around anti-bribery requires:
- regular monitoring;
- reviewing; and
- auditing to assess controls.
Key Steps to Reduce Bribery Risk
Clear policies and procedures
Your organisation should have a clear anti-bribery policy that promotes integrity and transparency. The policy should:
- ban bribery and corruption;
- explain why bribery is illegal and unacceptable; and
- demonstrate how staff are expected to behave when they face bribery risks.
It should also explain your approach to issues such as due diligence, whistleblowing, gifts and hospitality, charitable and political donations and facilitation payments.
Ensure senior leaders set the right example
Senior managers and directors should clearly show their commitment to preventing bribery. This includes:
- setting clear ethical standards;
- actively overseeing bribery risks across the business; and
- regularly reviewing whether anti-bribery measures are working in practice.
Provide training regularly.
Your organisation should conduct appropriate anti-bribery training to staff, with an additional focus on employees in higher-risk roles or locations.
Maintain effective whistleblowing arrangements
Whistleblowing plays an important role in preventing bribery, and concerns should be investigated properly. Businesses should:
- encourage people to speak up;
- provide confidential reporting channels; and
- take all reports seriously.
Manage bribery risks in contracts and supply chains
Bribery risks often arise in supply chains and business relationships. Using clear anti-bribery clauses in supplier and third-party contracts can help manage these risks. These clauses can require:
- legal compliance;
- reporting of concerns; and
- allow termination for misconduct.
Contracts should be supported by:
- proper due diligence;
- ongoing monitoring; and
- regular review of third parties.
Taking Legal Advice on Bribery Law Compliance
Organisations can face significant penalties under the Bribery Act 2010 if bribery occurs and they do not have proper prevention measures in place. In some cases, directors and senior managers may also be personally liable, depending on their role and involvement.
Meeting UK anti-bribery requirements means taking a proactive approach. This includes:
- assessing risks;
- putting proportionate controls in place;
- monitoring how well they work; and
- responding quickly to any concerns.
Legal advice from a regulatory solicitor can help businesses to fully understand how the Bribery Act 2010 rules apply to their operations, review and strengthen existing controls, identify gaps and implement procedures proportionate to the risks involved.
Given the significant negative implications of bribery law breaches, it is sensible to invest in legal advice to adopt robust anti-bribery policies and procedures.
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Key Takeaways
Anti-bribery laws are strict, and breaches can lead to serious criminal, financial and reputational consequences. Understanding your duties under the Bribery Act 2010 and related laws, and keeping a proportionate, risk-based anti-bribery programme in place, is essential to reduce risk. A regulatory solicitor can help your business to assess risk, strengthen your procedures and manage your anti-bribery obligations with greater confidence.
If you need help understanding anti-bribery rules, LegalVision provides ongoing legal support for all businesses through our fixed-fee legal membership. Our experienced lawyers help businesses across industries manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 0808 196 8584 or visit our membership page.
Frequently Asked Questions
The Bribery Act 2010 serves as the primary UK anti-bribery regime. It applies widely and sets out a range of key rules. Organisations can help prevent risks by taking important steps, such as identifying bribery risks, implementing proportionate procedures, conducting due diligence, providing training and monitoring, and reviewing controls over time.
Legal advice can help your business understand how the Bribery Act 2010 and related laws apply to your activities. It can also help you to identify and prioritise risks, as well as put in place clear policies, procedures and contract terms.
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