The United Kingdom’s (“UK”) Bribery Act 2010 (the “Act”) will come into force on 1 July 2011. It radically overhauls the UK's outdated and criticised anti-corruption laws and introduces a new, clearer regime for tackling bribery that will apply to all businesses based or operating in the UK. This article summarises the offences under the Act and the potential impact on Middle East companies operating in the UK and UK companies operating in the Middle East.
Summary of the offences
The Act sets out offences of bribing, being bribed and bribing a foreign public official (“FPO”). These offences will only be committed by an individual or commercial organisation if the relevant conduct (i) takes place within the UK or (ii) takes place outside the UK and the individual or company has a "close connection" with the UK (e.g. the individual is a British citizen or resident or the company is incorporated in the UK).
The Act also introduces a new corporate offence of failing to prevent bribery. The offence has wide reach and may catch companies incorporated outside the UK which have business operations or a subsidiary located in the UK.
Penalties include imprisonment or a fine or both. Businesses also risk being debarred from competing for public contracts in the UK.
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