July 22, 2010
With business preparations already in motion for the new Bribery Act, the government has announced its introduction will be pushed back from October 1st to April next year.
Heralded by many as a much-needed modernisation of ageing bribery legislation, the Bribery Act was passed by Parliament this April, with the Ministry of Justice indicating that it would come into force from October.
But the Ministry has announced a delay in implementation, citing an upcoming September review into how companies can ensure they do not fall foul of fresh legislation.
"In September the Government will launch a short consultation exercise on the guidance about procedures which commercial organisations can put in place to prevent bribery on their behalf," said a Ministry statement. "This will be published early in the New Year to allow businesses an adequate familiarisation period before the Act commences.”
The Act, which replaces common law bribery offences, increases the maximum penalty for bribery from seven to 10 years imprisonment, while introducing an unlimited fine. It will also be illegal to give, promise or accept bribes at home and abroad.
Companies will be able to defend against the heightened laws by demonstrating they put in place “adequate procedures” to prevent instances of bribery amongst staff and officials. However, the guidance and definition of such measures will not be known until September’s consultation concludes.
In the meantime, companies will both welcome and lament to Act’s postponement, with some given more time to adapt and others upset that the law will have to wait a while longer.
Those struggling to understand the Act and how it could change business practice should speak to expert solicitors before new laws are let loose.
