1. The Time is to Act Now March 2 2011
UK Bribery Act 2010
The Time is to Act Now
March

2. Profile Peter Hamilton – PwC Thailand, Forensics
Peter has over 10 years of dispute consulting and project management experience focused in fraud investigations, prevention and detection in Asia, Gulf and Europe. Within PwC Thailand he and has performed multiple local internal investigations for multinational companies with Thailand business operations. He has lead forensic teams to conduct investigations in relation to fictitious and nominee vendors, bribery and kickback fraud allegations. Prior to joining PwC Thailand he was employed as an Associate Director for another Big 4 firm in Thailand where he practiced forensic services for three years. He has successfully lead multiple discovery and analysis engagements in the area of fraud and FCPA investigations, computer forensics and multi- disciplinary dispute consulting.
Act Now or Pay Later
2 March 2011

3. Agenda UK Bribery Act 2010 – Salient features The Time is to Act Now
UK Bribery Act vs. FCPA
Guidance on procedures to prevent bribery
Challenge in Implementing Procedures to Prevent Bribery in Thailand
Next Steps
Act Now or Pay Later
2 March 2011

4. UK Bribery Act 2010 – Salient features
Passed into law on 8 April 2010, commences April 2011
Four key offences
Active bribery – paying (public and private sector)
Passive bribery – receiving (public and private sector)
Bribery of a foreign public official
Corporate offence of failure to prevent
Liability is triggered by a person acting for or on behalf of the organisation paying a bribe Defence is “adequate procedures”
Where a corporate commits bribery, senior officers who “consent” or “connive” are also liable
Act Now or Pay Later
2 March 2011

5. The Time is to Act Now Implications Penalties Reputational damage
10 years imprisonment and /or unlimited fine
Personal liability for senior officers who “consent or connive” at offence by corporate entity
Implications
Reputational damage
Potential debarment from tendering for government contracts
Professional fees and management costs of defending an investigation
Investor confidence
Act Now or Pay Later
2 March 2011

6. UK Bribery Act vs. FCPA Convergence with FCPA Differences from FCPA
Applies to public and private sector
Facilitation payments criminal
Active and passive bribery
Convergence with FCPA
Exposure for acts of associated parties
Extra-territorial reach
Increased enforcement actions
Act Now or Pay Later
2 March 2011

7. Guidance on Procedures to Prevent Bribery
Ministry of Justice has
issued guidance in six principles to aid the prevention of bribery
Six key areas of focus:
Principle 1 : Risk assessment
Principle 2 : Top level commitment
Principle 3 : Due diligence
Principle 4 : Clear, practical and accessible policies and procedures
Principle 5 : Effective implementation
Principle 6 : Monitoring and review
Act Now or Pay Later
2 March 2011

8. Challenge in Implementing Procedures to Prevent Bribery in Thailand
Principle 1: Fear of finding the ‘unknown’
Risk assessment Frequency of risk assessment
Issues of form over substance
Principle 2: Absence of a strong ‘tone at the top’
Tone at the top Inconsistency in actions, behavior and words
Principle 3: Use of agents or intermediaries – extensive, varying utility
Due diligence Driven by business consideration vs. reputation or risk
Principle 4: Awareness re: local anti-corruption law
Practical policies More questions than answers
& procedures More akin to policy documents with little practical relevance
Act Now or Pay Later
2 March 2011

9. Challenge in Implementing Procedures to Prevent Bribery in Thailand (Cont)
Principle 5: Absence of ongoing training Effective Do’s and don’ts v. holistic solutions implementation Confidence deficit
Principle 6: Ineffective monitoring of gifts, entertainment, hospitality etc.
Monitoring and
Review
Act Now or Pay Later
2 March 2011

10. Next steps 1. Assess risk 2. Evaluate existing controls
Specify
1. Assess risk
2. Evaluate existing controls
3. Target operating model
4. Remediation planning
Build
5. Design enhancements
Implement 6. Roll-out
7. Implement
Business takes ownership
8. Test
9. Follow-up
Embed
10. Ongoing monitoring; continuous improvement
Act now or pay later 21 October 2010
PwC 18
Act now or pay later
2 March 2010
PwC

11. Thankyou www.pwc.co.uk/briberyact Alternatively, contact:
More information is available on:
Alternatively, contact:
Vorapong Sutanont
Director, Advisory, PwC Thailand
+66 (0)
Peter Hamilton
Manager, Advisory, PwC Thailand
+66 (0)
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This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, [insert legal name of the PwC firm], its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2011 PwC Thailand. All rights reserved. In this document, “PwC” refers to Thailand FAS Advisory Ltd.which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.