Grant Angus: Businesses must put anti-bribery plans in place now

When the UK Bribery Act comes into force in April 2011, the UK will have one of the most stringent anti-corruption regulatory regimes in the world. Scottish companies, regardless of location or industry, need to act now to ensure their house is in order.

Together with offences relating to the payment and receipt of bribes, the Act introduces a new corporate offence of failing to prevent a bribe being paid. This defence requires a company to demonstrate that it has in place 'adequate procedures' designed to prevent persons 'associated' with it from committing bribery. Last month the Ministry of Justice issued draft guidance which set out six principles that should underpin a set of adequate procedures, but companies need to design a set of anti-bribery procedures that are tailored to their own risk profiles and particular circumstances.

As the reach of the Act extends to corrupt activity wherever in the world it occurs, many Scottish companies with operations and joint ventures overseas, as well as those who use sales agents, business introducers or other third parties to support their sales efforts, need to satisfy themselves that robust controls and monitoring activity is in place to prevent bribery and corruption. In many overseas countries where Scottish firms operate, facilitation payments are customary but these remain outlawed under the Act. Organisations need to ensure employees clearly understand the company's stance in relation to such payments and what to do in circumstances where requested to make them.

Fines and penalties in this area have increased dramatically. One corporation recently settled with the Serious Fraud Office for 30 million in connection with bribery-related offences. The introduction of the new Act, together with pressure from the judiciary, is only likely to see this upward trend continue. Organisations must address this issue now, or risk paying a heavy price in the future. l Grant Angus is a Director in Business Process & Risk Consulting with Deloitte in Scotland.