1. Bribery Act 2010

2. What this presentation will cover
Understanding of what bribery is
Have an overview of the current regulatory and legislative environment
Understand how bribery may effect you
Understand the reasons behind Intrinsic Policies and Procedures relating to bribery and expectations of you
Understand what you need to do

3. What is Bribery? A definition of bribery is:
“An offer or receipt of any gift loan, fee, reward or other advantage to or from any person as an inducement to do something which is dishonest, illegal or a breach of trust, in the conduct of the enterprise’s business”
This is based on the Transparency International definition which defines corruption as:
“The abuse of entrusted power for private gain”

4. What is Bribery? Not only cash/money, it is any item of benefit
Bribery relates to the giving AND/OR receiving of bribes
It is also the ‘offering or promising’ of a bribe, not only actual payment
Amounts are irrelevant, does not matter how small the amount, it is the intention that counts
Bribes can influence a person to either perform an action or not perform an action

5. Consequences of bribery
Bribery is the fastest growing form of economic crime
Estimates show that the cost of bribery and corruption equals more than
5% of global GDP (GBP £1.6 Trillion), with over GBP£630 Billion pounds paid in bribes each year
Deters investment and hinders growth
Enforcement and criminal activities
Corruption is both a cause of poverty and a barrier to overcoming it

6. History
The UK signed up to the Organisation for Economic Co-operation and Developments (OECD) Convention combating Bribery of Foreign Public Officials in International Business Transaction
The 38 countries that have so far signed the OECD Convention are required to put in place legislation that criminalises the act of bribing a foreign public official.

7. UK Bribery Act 2010
The Bribery Act 2010 is an Act of the Parliament of the United Kingdom
The Act defines four new criminal offences
Offering or paying a bribe
Requesting or receiving a bribe
Bribing a foreign public official (A specific offence required to comply with the OECD convention)
A corporate offence of failing to prevent bribery being undertaken on its behalf

8. UK Bribery Act 2010 Associated Persons
‘An associated person’ is defined under the corporate offence in the Act as one who:
“performs services on behalf of a commercial organisation (UK companies and partnerships, or other companies and partnerships which carry on their business, or part of their business in the UK).”
The Act gives the examples of employees, agents, subsidiaries, joint ventures etc
Maximum penalty of 10 years imprisonment and/or unlimited fines for individuals under offences 1, 2 and 6
The corporate offence carries an unlimited fine

9. UK Bribery Act 2010
The legislation applies to all companies, partnerships and individuals based in England, Scotland, Wales and Northern Ireland, as well as foreign companies and individuals doing business in the UK
The Act has a global reach, applying to acts or omissions taking pace anywhere in the world
The UK Bribery Act 2010 was due to come into force in April 2011 but was delayed until 1st July 2011
SFO will be primarily responsible for ensuring adherence to the Act

10. UK Bribery Act 2010
General offences – Companies or Individuals (sections 1 & 2)
“Offering, promising or giving a bribe in the UK or abroad, in the public or private sector”
“Requesting, agreeing to receive or accepting of a bribe in the UK or abroad, in the public or private sector.

11. UK Bribery Act 2010 General offences
Must be an “intention” to induce a person to act improperly in the performance of their duties.
What is “improper” is judged by the standards of “reasonable person in the United Kingdom” – local custom is not a defence.

12. UK Bribery Act 2010 Specific offences (sections 6 & 7)
“Bribery of a foreign public official in order to obtain or retain business or advantage in the conduct of business”
“Failure by a commercial organisation to prevent a bribe being paid (directly or indirectly) by those who perform services for or on behalf of the organisation”
It will be a defence to this corporate offence if a company has “Adequate Procedures” in place

13. UK Bribery Act 2010
Bribery – Potential Risk Areas
Gifts, Entertainment, Hospitality
Conflicts of Interest
Lobbying, charitable donations
Procurement

14. Possible consequences of bribery
Financial
Reputation
Ability to hire new staff
Losing contracts

15. What do I need to do now?
Be aware of and follow procedures relating to bribery prevention in relation to your role.
Exercise vigilance and due care and follow the appropriate reporting processes where concerns about bribery exist
Be aware of and apply the relevant procedures and practices to mitigate bribery
If you become aware of any attempt to offer or receive a bribe you need to contact the Intrinsic’s Head of Financial Crime

16. Summary New legislation Bribery Act 2010 Offer, pay or give a bribe
Request, agree to receive or accept a bribe
Foreign Public Official offence
Corporate offence