The article in the url below reports on the Bribery Act, new legislation that is due to be introduced in the UK in April. The legislation is similar to the Foreign Corrupt Practices Act (FCPA) in the U.S., but, in key areas, goes further:
“The Bribery Act covers any company that conducts business in Britain, regardless of where the company is based. It goes beyond the FCPA by not just prohibiting illicit payments to foreign officials, but also bribes between private businessmen. It applies even if the individual who makes the payment doesn't realize the transaction was a bribe, legal experts say.”
The Bribery Act, which is described in the article as “the FCPA on steroids,” consolidates various UK rules and policies concerning bribery, while also extending the reach of government oversight and the possible punishments for transgressions:
“[It] boosts the maximum penalty for bribery to 10 years in prison from seven, and sets no limits on fines.”
The Act also bans “grease payments” (“small bribes common in some countries to get mail service, phone hook-ups or other services that otherwise would be delayed”) that are permitted under the FCPA, as long as they are declared.
The UK legislation appears as the U.S. government is increasing FCPA prosecutions (in terms of both number and penalties), while China and other European countries are also increasingly monitoring their firms’ activities on this issue. The recent clause of the Dodd-Frank Act in the U.S. providing financial incentives for whistleblowers to report bribery carries the potential to alter the landscape for firms regarding bribery and heightens the need to increase their compliance programs to ensure they are protected.
Take care
David
Instructor Teaching Site: http://www.sagepub.com/strategiccsr/
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U.K. Law On Bribes Has Firms In a Sweat
By Dionne Searcey
951 words
28 December 2010
The Wall Street Journal
B1
