29 Mar 2011
Reaction to new guidance on the UK Bribery Act
The Ministry of Justice has published its long awaited guidance on the Bribery Act due to come into force on 1st July 2011. More information on the Act and the guidance on the Ministry of Justice website here: http://www.justice.gov.uk/guidance/bribery.htm
Eoin O'Shea, head of anti-corruption, Lawrence Graham LLP comments:
"Mr Clarke floats the idea that foreign companies listing shares on the London exchanges might be exempt from the Bribery Act. The Act applies to any company which carries on business, or part of a business, in the UK. It is not immediately obvious that listing shares, dealing with the stock exchange or raising capital in London is not carrying on a part of one's business. Even if there is an exemption (and only the courts can decide) there is something rather strange about the Justice Secretary deliberately drawing attention to possible loopholes in the criminal law. It's even stranger when one considers that, if he is right, the result might well disadvantage UK-based companies.
"On adequate procedures again, it's very surprising that Mr Clarke is so confident that a small business 'can rely heavily on simply telling staff verbally'. The burden of proof of adequate procedures is on the defendant and the Ministry's own guidance spells out six key principles of good practice which make sense for majority of businesses, big or small. Verbal instructions alone seem pretty risky in these circumstances."