The Bribery Act makes it illegal to receive bribes and fail to prevent bribery, creating offences carrying 10 year prison terms and unlimited fines.
The act applies to both UK and foreign companies who have operations in the UK, as well as individuals.
Bribery is generally defined as the giving of financial or other advantage to encourage someone to perform their function or activities improperly.
Corporate Entertainment
This, understandably, creates a concern over corporate entertainment.
The government has offered additional guidance on this matter stating that they do not expect genuine hospitality to be covered under that act.
Our Advice
Companies should consider the bribery act as part of their compliance function ensuring:
– management communicates and encourages a culture of zero tolerance.
– management know what is going on in the company.
– staff are trained in the act.
– hospitality offered is reasonable and appropriate.
