The Bribery Act 2010 came into force today (1 July), introducing tough new laws that could see businesses prosecuted for failing to prevent bribery
Individuals who pay or accept bribes risk a prison sentence of up to 10 years, while businesses who fail to prevent the practice by their employees or any "associated person" commit a corporate offence and could face large fines.
It is a defence if the company can show it has "adequate procedures" in place.
Both the Ministry of Justice (MoJ) and the Serious Fraud Office have published guidance on the Act.
Nick Benwell, partner in charge of crime, fraud and investigations at Simmons & Simmons, said: “In practice, a lot of the impact of the Act is going to be felt as companies increasingly require assurances from their suppliers about the suppliers' anti-bribery compliance procedures.
“Although there is no grace period under the Act, the MoJ Guidance does at least recognise that applying anti-corruption procedures retrospectively is more difficult, but this should be done ‘over time, adopting a risk based approach’.”
New Law Journal hosted a top level roundtable discussion on the implications and enforcement of the new Act today, chaired by David Greene, NLJ consultant editor, senior partner & head of the litigation & dispute resolution team at Edwin Coe. A report of the discussion will be published in a forthcoming issue.
