The UK Bribery Act promises a shake-up of confused corruption legislation and all companies should take the implications of the Act seriously.
At the very least the following steps should be taken. Firstly, companies should review all commercial arrangements to ascertain the level of exposure to the Act – to ascertain what type of connection the company has with the UK.
Secondly, if there is any risk of exposure, consider inserting anti-corruption clauses into commercial agreements, covering "adequate procedures" and the consequences of bribery for enforceability of contracts.
Thirdly, train directors and staff in order to minimise exposure to the Act.
And lastly, review Directors & Officers insurance to ensure that there is adequate cover in place, for example to cover the costs of investigating and defending any allegations of bribery or corruption, including for agents and non-management staff.
The OECD has been pushing bribery and corruption up the legislative and enforcement agendas of its member states for a number of years. Enforcement of existing laws has increased markedly.
Arguably, the UK Act should be seen as the latest chapter in this trend, rather than a one off event. As such, companies may consider taking the Act as a useful spur to focus on anti-corruption measures, as doing so will keep them in line with the major trend of reduced tolerance of corruption from OECD members.
