Companies need to make sure it has the proper compliance programmes in place to protect itself from being prosecuted under new legislation, says The Red Flag Group
HONG KONG, April 13 /PRNewswire-Asia/ -- On April 8, 2010, the UK Parliament passed the country's first major overhaul of its bribery laws in over a century, putting UK companies under the most stringent anti-corruption regime in the world. It goes even further than the standards set by the US Foreign Corruption Practices Act (FCPA).
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The so-called Bribery Bill, which will replace a number of offenses in common law and in the Prevention of Corruption Acts 1889-1916, will make it a criminal offense to offer or promise a bribe, bribing foreign public officials, and for failing to prevent a bribe to be paid on a company's behalf. The first two offenses will become effective immediately, while the third offense will become law at a later date -- expected to be October 1 -- to be chosen by the UK government. To defend itself against claims that it was negligent in prevent bribery from taking place, companies will need to show that has adequate internal controls and compliance programmes in place.
Furthermore, unlike the FCPA, the Bribery Bill makes no exceptions for making facilitation payments, prohibits bribery not only for officials but also private citizens, and imposes sentences of up to 10 years in jail for individuals executives convicted under the new law.
Scott Lane, The Red Flag Group's CEO and principal, said the passage of the landmark bill means that UK companies need to make sure they have adequate internal controls in place to protect itself against the new legislation. "For decades the US FCPA has been the most stringent piece of anti-corruption legislation in the world. That's no longer the case. The bill's passage will mean that UK companies will now be under a level of scrutiny by the country's graft-buster that no companies anywhere else world has ever experienced before, not even those across the Atlantic.
"More than ever, UK companies need to make sure they have an effective and comprehensive compliance programme in place, that it is being adhered to in the far-flung markets that these companies operate in, and that its network of clients, suppliers, business partners, agents, and other third-party relationships operate to compliance, ethics and corporate governance standards that is at least as stringent as those which it imposes on itself," said Mr. Lane, who coincidentally is set to speak at a London conference on 20 - 21 May organised by the Society of Corporate Compliance and Ethics. Entitled Managing Third Party Anti-Corruption Compliance and Ethics Risk, he will be lecturing on the topic of conducting effective integrity due diligence.
"Even more importantly, the law not only affects UK companies dealing locally or abroad, but also businesses from all corners of the globe who either have offices or operations in UK, or employ UK citizens. This new law will expose these companies to new compliance risks.
"The Red Flag Group has extensive experience helping clients deal with global anti-corruption legislation compliance. Our London office, headed by legal and compliance industry veteran and our VP Corporate Strategy & Development Mr. Andrew Henderson, ensures that we understand the needs of companies who now face the most daunting compliance challenges in the world. We also have offices across Asia and the Middle East, including in Hong Kong, Singapore, and in Dubai, giving local on-the-ground knowledge of anti-corruption and bribery practices in the biggest emerging markets on the globe. Our ComplianceDesktop(R) enterprise compliance management solution is used by Fortune 500 companies around the world to help them deal with issues such as managing Gifts, Travel, and Entertainment. We are well placed to help companies deal with this sea of change that is now taking place in the UK," he said.
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About The Red Flag Group
The Red Flag Group is one of the world's leading independent Corporate Governance and Compliance firms providing thought leadership around Compliance to Fortune 1000 companies. Our main goals include helping companies develop and maintain efficient and effective Governance and Compliance programs in the emerging markets. The firm consist of ex in-house counsel and compliance officers and have offices in Hong Kong, Sydney, Singapore, San Francisco, Seattle, London, and Dubai. For more information, go to http://www.redflaggroup.com .
For enquiries, please contact:
Scott Lane
Tel: +852-9665-4881
Email: scott.lane@redflaggroup.com
Andrew Henderson
Tel: +44-207-193-0218
Email: andrew.henderson@redflaggroup.com
