The Bribery Act comes into force on 1 July 2011

The Ministry of Justice has finally published the long-awaited guidance on the Bribery Act coming into force on 1 July 2011.

How the new anti-bribery legislation will work:-

The Bribery Act 2010 attracted a lot of criticism from the business community when first published – the CBI, for example, declared it unfit for purpose. There was a fear it would result in the criminalisation of normal business practices, such as corporate hospitality. As a result of these criticisms, the government revised the initial draft guidance it had produced and has now published a final version.

Businesses now need to review their activities and act fast, if they believe they may be at risk, as the Act is coming into force in less than three months’ time.

Breaches:-

There are four offences under the Act. which are:

• giving a bribe to encourage a person to perform their duty improperly;
• receiving a bribe with the intention that a duty will be performed improperly as a result;
• bribing foreign officials in order to retain or obtain business, or a business advantage, where there is no   express legal permission or obligation to do so;
• failing to prevent a bribe (this applies to commercial organisations only).

These offences are punishable by unlimited fines and prison sentences of up to 10 years. Directors may be held personally liable if they consent or connive in a bribe committed by their organisation.