Fraud and Financial Crime

Corruption Clampdown Report 

Businesses plead ignorance to new bribery and corruption laws

• Businesses are unprepared for tough new bribery laws
• One in five companies have no policy to address corrupt practices
• One in four board directors unaware that they could face a 10 year prison sentence

New laws which could put workers behind bars and hit companies with unlimited fines are passing into law unnoticed by UK businesses.  According to research we conducted earlier this year, many businesses are in the dark over the new UK Bribery Act 2010, with 60% of businesses unaware that failing to prevent bribery will be a criminal offence. A failure by a business to deal with bribery issues could lead not only to the individual directors facing prison but also the business facing a substantial fine.

The laws, which have already received royal assent and will come into force in April 2011, will mean that all businesses need to have 'adequate procedures' in place to prevent bribery and corruption occurring.  These will include an anti-bribery policy, training of staff, closer scrutiny of purchasing decisions, clear rules on corporate entertainment and gifts as well as a hard line taken on those found to be 'greasing palms' to win business.

Our Corruption Clampdown report reveals a lack of knowledge and understanding about the new laws, even at the top of UK businesses.

Further information

For more information please visit our Corruption page or please contact us:

Paul Worth
Partner
paulworth@eversheds.com
0845 497 7623

Neill Blundell
Partner
neillblundell@eversheds.com
0845 497 4533

Bribery and Corruption: Are you prepared?

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