The Ministry of Justice announced on 20 July 2010 that the Bribery Act 2010 will come into force in April 2011. Previously it was expected to take effect this autumn.

In July we reported on the provisions of the Bribery Act, which received Royal Assent on 8 April 2010.

To recap, the Bribery Act consolidates the UK’s anti-corruption legislation and includes criminal offences of “bribing another person”, “being bribed” and an offence - applicable to companies and partnerships - of “failing to prevent bribery” (the corporate offence). The corporate offence is effectively one of strict liability, subject to a defence of having “adequate procedures” in place designed to prevent bribery.

Guidance on procedures to prevent bribery

In relation to the corporate offence, the Act prescribes that the Secretary of State must publish guidance about procedures which companies can put in place.

The Government has now said that the guidance will be published early in the New Year, to allow businesses a familiarisation period before the Act comes into force. Before that, in September 2010, there will be a short consultation exercise on the guidance.

It will be important to look out for the consultation and the publication of the guidance, given the potential severity of the penalties under the corporate offence (companies may be liable to unlimited fines).

The guidance is likely to be high-level in scope, given that it has to apply to all companies. Each company will, therefore, need to assess its own risks (for example, whether it trades in sectors or markets which have a reputation for corruption) and adopt procedures relevant to its needs. In terms of compliance, the guidance is likely only to be the starting point.

We shall let you know when the consultation on the guidance begins, and otherwise keep you posted.

Click here for our previous article on our website explaining key aspects of the Act.

For more information on these issues please contact

Sohrab Daneshku

or your usual Lewis Silkin contact