Government publishes guidance on adequate procedures, hospitality, facilitation payments and enforcement
The Ministry of Justice released its final guidance on the Bribery Act, detailing what it considers to be “adequate procedures” as well as what constitutes hospitality and facilitation payments.
The Bribery Act could result in an unlimited fine for a company that fails to prevent bribery.
However, one defence they can use is to demonstrate “adequate procedures” are in place to prevent bribery.
The guidance contains some interesting developments since the draft issued last year, said John Smart, head of Ernst & Young’s fraud investigation practice.
“There are six key principles of adequate procedures, consistent with the earlier consultation document, but two of them have been changed.”
Also of interest to many will be the additional guidance given in relation to the thorny topics of corporate hospitality, associated persons, and facilitation payments.
The guidance advocates proportionality and reasonableness rather than strict interpretations and enforcement, said Smart. This will be welcomed by the corporate sector.
The Director of the Serious Fraud Office and the Director of Public Prosecutions also published their prosecution guidance for the Bribery Act.
Ernst & Young have given an overview of the Bribery Act which contains a summary of the six principles.
More comments on the Bribery Act:
Control Risks launches Bribery Act training
OECD statement on UK Guidance for the Bribery Act
