Travel Info :The U.K. Bribery Act – How it affects all multinational meetings and travel programs
The world’s toughest bribery legislation took effect in the United Kingdom in July, and it directly affects how any business with U.K. connections arranges corporate hospitality, or even ordinary meetings. What is more, it isn’t just individuals who face prosecution; so do corporations.
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The world’s toughest bribery legislation took effect in the United Kingdom in July, and it directly affects how any business with U.K. connections arranges corporate hospitality, or even ordinary meetings. What is more, it isn’t just individuals who face prosecution; so do corporations. What steps can you take to stay on the right side of the new law?
The U.K. Bribery Act 2010 came into effect on July 1, 2011. The new legislation has extremely important consequences for meetings managers and, to some extent, travel managers at all multinational companies. Yet many businesses are only just beginning to wake up to these implications.
The Act makes it a criminal offense for individuals either to make or receive a bribe. In addition, it becomes an offense for a corporate entity to fail to prevent bribery by an associated person, a definition which can include subsidiaries, agents, contractors, joint-venture or consortium partners and third-party service providers. Bribery is now a strict liability offense, which means evidence of criminal intention is not required. In other words, the Act can apply even if a bribe was made without the knowledge of anyone in the organization.
The new law applies to acts of bribery within the U.K. and also outside the U.K. if there is a “close connection” to the U.K., which might mean a U.K. company, citizen or resident is involved, or it could apply to a U.K. office of a company from another country.
Penalties for breaking the law are stiff: individuals face up to 10 years in prison and/or unlimited fines. Companies also face unlimited fines, and senior officers may individually be found guilty of consent or connivance. Guilty companies also may be permanently excluded from government contracts across the European Union. Despite these consequences, corporate response to the Act has been slow. Here’s why:
Companies worldwide believe the Bribery Act only applies to UK companies.
WRONG – According to a briefing note prepared for the U.K.-based meetings organization Eventia by the law firm Olswang, if a bribe is detected: “All companies and partnerships that carry on any part of their business in the U.K. will be caught by the Corporate Offence, regardless of where they are incorporated or formed and regardless of where the alleged bribe takes place.”
Executives think meetings and hospitality procedures are already compliant with bribery legislation.
WRONG – The briefing note says the U.K. Bribery Act is significantly tougher than the previous “gold standard” of bribery laws, which was the United States’ Foreign Corrupt Practices Act. Examples include:
This information is provided by BCD Travel and BCD Meetings & Incentives for educational and informational purposes only and is not intended as and should not be construed as legal advice.
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