The Bribery Act finally comes into force and the first conviction is handed down

22/11/2011

By James Herbert, Partner and Head of Corporate & Commercial.

The Bribery Act came into force on 1 July 2011 after delays caused by uncertainty over its implementation and effects.

The Bribery Act introduces new criminal offences relating to the making and receipt of bribes. It also introduces a new criminal offence for businesses with a UK presence that fail to prevent bribery carried out by people working on their behalf. To defend themselves against this charge, businesses will need to show that they have adequate measures in place to prevent bribery.

Guidance from the Ministry of Justice makes clear that businesses should implement bribery prevention policies that are proportionate to the scale and complexity of their activities. They should also ensure high level engagement in the creation of bribery policies and keep the policies under constant review. The guidance is available through the Ministry of Justice website.

The first prosecution began soon after the Act came into force and has resulted in a conviction. At the time of going to press, the sentence had not been published. In the case, an administrative court clerk from Redbridge Magistrates’ Court was charged under the Act over allegations that he asked for and accepted a £500 bribe in relation to a motoring offence.

The Serious Fraud Office will want to send a message to ‘big business’ that it will not tolerate corruption. For now, we will have to wait for a significant prosecution before assessing the true impact of the Act. In particular, it will be interesting to see how the Act affects international businesses with a UK presence. These businesses frequently engage intermediaries in various jurisdictions and they will be under pressure to comply with the new rules.

For more information, please click on the links in the right hand column or contact James Herbert.