According to a recent survey by Ernest & Young 72% of UK middle managers have never heard of the Bribery Act. Also concerning is that just over half of the remaining 28% felt they had received adequate training on the Act. The survey, which polled 1,000 middle managers is shocking given that the Bribery Act has been in force for nearly ten months.

John Smart, partner at Ernest & Young, believes the lack of any reported cases may be giving organisations a false sense of security, with some either underestimating their exposure to bribery risks, failing to see any urgency in ensuring their organisations are compliant or not feeling sufficiently equipped to offer their staff guidance.

Although organisations may consider the cost of putting in place compliance measures to meet the requirements of the Bribery Act yet another drain on their already stretched resources, doing nothing could have far greater consequences.  It is important to stress that putting in place adequate anti-corruption procedures is the only defence against prosecution under section 7 of the Act. It is also the requirement of an increasing number of compliant organisations when looking to enter into or renew business relationships with third parties.

Lombard Chambers online Bribery Act Training  is flexible and designed to provide a complete compliance solution. The training package comprises:

Compliance Officer Training. This course is designed to take the Company Secretary or other designated person through each of the steps necessary to undertake a risk assessment and impose adequate procedures to prevent bribery.

Basic Training. This course is a basic awareness training course. It should be taken by all relevant employees who need to understand the requirements of the Bribery Act and how they can put it into practice in their day to day activities.

Advanced Training. This course is intended for heads of department and their deputies. It contains a greater emphasis on the law and explains why the risk assessment exercise impacts on their departments.

Lombard Chambers’ Bribery Act On-line Compliance Training has been produced to comply with the Guidance issued by the UK Ministry of Justice. Each course has been approved by the UK Law Society  and the Bar Standards Board and carries Continuing Professional Development (CPD) points.

Further details on Lombard Chambers’ online Bribery Act Training can be found on our website.

A report published by the OECD sets out the views and recommendations of a Working Group on the UK’s implementation and enforcement of the OECD Anti-Bribery Convention. The Report focuses on the UK’s recent record on enforcement of existing corruption laws as well as the Bribery Act 2010.

The main findings and recommendations of the report are as follows:

1. The UK should continue to provide adequate resources and support to the Serious Fraud Office and other relevant law enforcement agencies in order to improve their record of enforcement.

2. The UK is commended for publishing the Guidance to Commercial Organisations regarding ‘Adequate Procedures’.

3. There is concern regarding the settlement of foreign bribery-related cases because the UK authorities are increasingly reliant on Civil Recovery Orders ‘which require less judicial oversight and are less transparent than criminal plea agreements’.

4. As little information on settlements is made publicly available by the UK authorities, this often prevents a proper assessment of whether the sanctions imposed are effective, proportionate and dissuasive.

5. There is concern that in some cases the SFO has entered into confidentiality agreements which prevent the disclosure of key information after cases are settled.

6. There is a need for clarification related to references in the Guidance to ‘reasonable and proportionate’ hospitality and promotional expenditures, including the reference to industry norms.

7. UK policy should ensure that organisations effectively move towards ‘zero tolerance’ of facilitation payments.

8. The UK is commended for its efforts to raise awareness of the Bribery Act and the foreign bribery offence.

9. Further refinements are recommended related to the UK’s approach of requiring companies to compensate the country of a bribed official.

Lombard Chambers’ online Bribery Act training addresses some of the issues set out in the report, particularly the need for companies to put in place ‘adequate procedures’ to prevent bribery and through work-based scenarios the training provides clarification on ‘reasonable and proportionate’ hospitality and promotional expenditure. For further information about Lombard Chambers online Bribery Act Training please click here.

The OECD report can be accessed here.

According to the Financial Services Authority (FSA) half of 15 banks that were given a spot inspection failed to provide an ‘adequate anti-bribery and corruption risk assessment’. It said it was considering referring some banks for further investigation and possible fines.

The FSA found that senior managers’ knowledge of corruption laws was so poor that it was “difficult for us to see how firms’ senior management could provide effective oversight”. It is concerning that only two of the firms visited had carried out an anti-corruption audit.

“Overall, despite the high profile of the issue, the investment banking sector has been too slow and too reactive in managing bribery and corruption risks,” said Tracey McDermott, the FSA’s acting director of enforcement and financial crime. “Firms across all sectors must have appropriate controls to manage their financial crime risks, whether related to bribery and corruption or otherwise.”

From next year the FSA the new Financial Conduct Authority that will take on responsibility for financial wrongdoing, continuing to monitor banks’ progress closely and will consider issuing fines.

The warning comes as an £8.75m fine was handed down to Coutts for breaches of money-laundering rules after three years of “serious” and “systemic” problems in handling the affairs of customers vulnerable to corruption because of their political links.

The FSA’s latest investigation found that investment banks generally limited hospitality to £400 for individuals and to £15,000 for corporate or sponsorship events. The report found that one banker had accepted corporate hospitality of “a three-day trip to the football World Cup in South Africa costing £10,000 for one employee and his wife”. No individual banks were named in the report.

The introduction of the Bribery Act last year was the most significant overhaul of the UK’s bribery laws for 100 years, placing legal responsibility on firms for ensuring that anti-corruption measures are enforced.

Lombard Chambers’ online Bribery Act training can help financial institutions to put in place an adequate anti-bribery and corruption risk assessment and ensure that staff, appointed as compliance officers, have the knowledge and tools to make appropriate enhancements to their systems and controls. Moreover, Lombard Chambers’ online Bribery Act training will ensure that staff, at all levels, are given either basic awareness training or more advanced training to enable them to understand and apply the requirements of the Bribery Act in their day-to-day activities. For further details on Lombard Chambers’ Bribery Act training, please click here.

See also Reuters news: Banks told to pull up socks on bribery controls