U.K.’s Bribery Bill – With Potential Jail Time For Violators – Underwhelms U.S. Companies Operating There, Survey Finds

According to a new survey conducted by the international law firm Eversheds, U.S. companies operating in the U.K. are unprepared for tough new U.K. bribery laws – and 88 percent are unaware that there is a maximum jail term of 10 years under the legislation for violators. 

The laws, which are expected to come into force later this year, will mean that all businesses need to have “adequate procedures” in place to prevent bribery and corruption.  These will include an anti-bribery policy, training of staff, closer scrutiny of purchasing decisions, clear rules on corporate entertainment and gifts, as well as a hard line taken on those found to be “greasing palms” to win business.
 
Eversheds’ Corruption Clampdown report reveals a lack of knowledge and understanding about the new laws. The report found that three in five (60 percent) organizations do not have robust systems to prevent bribery from taking place. Well over half (66 percent) of those surveyed admitted that they have either not been offered or as yet received training on bribery and corruption issues.
 
There is also confusion about what constitutes bribery, with nearly three in 10 (29 percent) of those surveyed in the U.S. being unaware that under the legislation it is illegal to give, promise, or offer an advantage to help secure business. Half of U.S. respondents (50 percent) were unaware of the new corporate criminal offense of failing to prevent bribery committed by employees or agents acting on behalf of the company.
 
Neill Blundell, head of the Fraud Group at the Eversheds law firm, points out that, “The new laws bring significant responsibility for directors who will need to carefully monitor all procurement and sales activity within the business, including deals done by agents and intermediaries. If for example, an agent used to secure business commits bribery to win a contract, the business could be held criminally responsible for failing to prevent the act of bribery by the agent.  If any directors or officers of the business have become aware that the agent has acted in such a way and failed to act, they too could face prosecution and imprisonment.”