Although government guidelines on its interpretation and application have been delayed and no-one is sure how it will impact on the business community, the Act will apply to you as an individual and to your company  whether you do business in the UK or overseas.  Individuals face a maximum prison term of 10 years and companies an unlimited fine.  The offences under the act fall into four categories:

1. paying a bribe
2. receiving a bribe
3. bribing a foreign public official
4. failing to prevent bribery

It will be a defence to the charges for a company to show that it had adequate procedures in place to prevent bribery when the offence took place.

Is this going to be another example of burdening businesses with red tape like the money laundering regulations, which require you to appoint a Money Laundering Reporting Officer, to train and update your staff annually?

Let’s face it, most small to medium sized businesses are not affected by money laundering and are unlikely to be affected by bribery.  I am not saying money laundering does not exist, but do we need the bureaucratic approach to documenting our procedures and training our staff annually?  Aren’t business people already aware what money laundering involves and that it is illegal – for example to evade tax?

Likewise, don’t we all know and accept that it is wrong to offer or accept a bribe?  Regulating SME’s is not going to stop bribery.  Yes, it is important to have the offences defined and on the statute book but not to make business people set up more rules and procedures on how to conduct business ethically.