UK Bribery Act/FCPA
R2G has both significant understanding and experience in helping managers mitigate the risks posed by an ever increasingly complex global regulatory environment.
The new UK Bribery Act, introduced in July 2011, poses particular new challenges to UK based investors, even those that have historically been compliant with the US Foreign Corrupt Practices Act (“FCPA”).
While both the US and British regulatory statutes have various similarities, there are a number of stark differences that may have particular relevance to companies operating in Emerging Markets.
Activities covered by both FCPA and UK Bribery Act
- Bribery or corruption by any 3rd party – be it distributors, agents, or anyone else who provides a service for, or on behalf of, the company.
- Bribery of state officials.
- Intent to bribe.
- Failure to keep accurate books and records.
Additional activities specific to UK Bribery Act
- Failure to prevent bribery.
- Facilitation payments of any kind – this include payments to facilitate the normal course of businesses (i.e. not with the intention of gaining unfair business advantage, such as a payment at customs to release business cargos).
- Business to business bribery.
- Receipt of a bribe.
The penalties under the UK Bribery Act are also potentially much more severe than the FCPA, with unlimited fines for companies and jail terms for senior executives of up to ten years.
R2G has a number of services to help managers mitigate the risks posed to their businesses by both the FCPA and the UK Bribery Act. These services are closely tied to both the recommendations of various global transparency NGO’s, along with the UK government’s published advice on “adequate procedures” in ensuring compliance with the UK Bribery Act.
- Compliance and Red Flag Screening
- Reputational Due Diligence
- Regulatory Risk Assessment
- Regulatory Monitoring
- Bribery Act/FCPA training and communication