Helping SMEs on how to resist corruption in business

UK Bribery Act 2010
  • This act provides strict and comprehensive regulations to deal with corruption in general and corruption in business (increase imprisonment up to 10 years vs 7 years of previous law).
  • UK law defines 4 forms of corruption acts: (1) giving bribery, (2) receiving bribery , (3) Bribery of foreign public officials to obtain or retain business or advantage in conduct of business (4) Failure of commercial organizations to prevent bribery. 
  • In 2011, UK Ministry of Justice gave the guidance on measures for commercial organizations to prevent bribery in which promulgated compulsory principles for commercial organizations to apply:
  • Apply measures to prevent bribery;
  • Leaders and high managers commit to bribery prevention;
  • Periodically assess the risk and level of the bribery risk;
  • Apply measures to minimize the identified risks;
  • Conduct communication (including training) throughout the organization to apply and thoroughly prevent bribery;
  • Control and monitor to prevent and promptly adjust policies if it is necessary

See more about the UK Bribery Act here

Foreign Corrupt Practices Act - FCPA (USA)
  • The Foreign Corrupt Practices Act (FCPA), enacted in 1977, applied to all U.S citizens and foreign issuers of securities. With the enactment of certain amendments in 1998, the anti-bribery provisions of the FCPA now also apply to foreign firms and persons doing business within the territory of the United States. Thus FCPA applies to any businesses in doing business with U.S partners.
  • FCPA covers two key areas: bribery prevention and book and record transparency which requires good accounting practices and strict internal control of recording assets that make it difficult to mask corrupt payments.
  • This act does not distinct between acts of “bribery” and “reception” which is legal in some countries if it does not violate the laws in those countries.
  • Businesses can be fined up to US $ 2 million, while individuals can be fined up to US $ 100,000 and could be imprisoned.
  • A violation of the FCPA consists not only giving bribery but also offering, suggesting, promising payment. It prohibits bribery of anything valued rather than only cash paid to foreign governmental officials to obtain or retain improperly advantages. The matter is intention rather than quantity.

See more about the UK Bribery Act here

United Nations Convention Against Corruption (UNCAC 2005)
  • To combat corruption, UNTAC agree on common norms and principles including:
  • Preventive measures
  • Criminalization and law enforcement measures
  • Asset recovery
  • International cooperation and technical assistance
  • Preventive measures stipulated from Article 5 to 14 consist:
  • Bound code of conduct to public government servants, employees
  • Ensure independence of judiciary, criteria for recruitment of public servants, employees and transparency in procurement;
  • Promote transparency and accountability in financial management in public and private sectors;
  • Involve non-governmental and community-based organizations, as well as other elements of civil society.

See more about the UNTAC here

APEC Anti-corruption Code of Conduct for Business
  • Prohibit bribery
  • Request measures to counter corruption in business
  • Scope:
    • Charitable contribution;
    • Gift;
    • Facilitation payment;
    • Contribution to political parties
  • Program implementation requirement:
    • Apply in business relationship;
    • Promote communication;
    • Leadership;
    • Financial recording and audit;
    • Human resources;
    • Monitoring and review;
    • Raising concern and seeking guidance;
    • Training for employees, contractors, suppliers

See more about the APEC Code of Conduct here