Bond Pearce

On 1 July 2011, the Bribery Act 2010 came into force.  The Act consolidates existing common law in relation to bribery offences, but also introduces a new strict-liability corporate offence of failing to prevent bribery worldwide by associated persons.  By now, most if not all of the FTSE100 companies who are at relatively high risk of encountering bribery will have undertaken a risk assessment and put in place compliance systems.  However, smaller FTSE250 companies with fewer resources are not in a similar position and most will not have addressed the implications of the Proceeds of Crime Act 2002 which may prove highly significant when anti-bribery procedures are implemented.

Proceeds of Crime

If a business's 'adequate procedures' reveal that a bribe has been paid or offered on its behalf and this resulted in a contract being awarded or other financial benefit- all revenues arising from that contract would constitute criminal proceeds and are at risk of confiscation or civil recovery by the Serious Organised Crime Agency. The business will also have to consider very carefully how it handles such discoveries, as failure to disclose knowledge or suspicion that bribery has taken place to Serious Organised Crime Agency could result in a money-laundering offence being committed with more onerous penalties than those presented by the Bribery Act.

An investigation or prosecution, whether under the Bribery Act or Proceeds of Crime Act would go to the heart of a company's reputation and brand.  This in turn affects all key stakeholders.  Communication between all key stakeholders is essential when addressing bribery risks to the business.  We are here to advise on the issues raised by the Bribery Act and the implications of the Proceeds of Crime Act where they are relevant to your business.