Companies gear up for UK anti-bribery law

The UK Ministry of Justice has begun a consultation exercise to prepare businesses for the introduction of the UK Bribery Act 2010. The act, which will come into effect in April 2011, will enable courts and prosecutors to respond more effectively to bribery in the UK and overseas.

The legislation holds businesses liable if they fail to prevent bribery by individuals performing services on behalf of their organization. The act applies to all commercial organizations (both companies and unincorporated bodies) that conduct business in the UK, regardless of where they were formed.

The act creates “the most onerous anti-corruption regime in the world,” Alexandra Underwood, a senior associate at Field Fisher Waterhouse, told India Business Law Journal. “Businesses in the UK face liability for bribes paid by their employees and business partners, wherever in the world that activity takes place. It does not matter that the entity knew nothing about the bribe or had little practical control over the person paying the bribe. The test is simply whether the bribe was paid with the intention of gaining a business advantage for the business in the UK.”