Do you still think compliance is expensive?

It is not easy to provide training on Anti-Bribery and Competition Law. You probably also say how important it is to be compliant and that investments in strong and solid compliance program is needed.

You are very right! However you need a hook to attract attention of your audience. There are a lot of dramatic stories of companies losing money, reputation, or people being fired because of misconduct. Use them! Your speech will be far more tangible! The below is the most recent one..

“Rolls earnings hit by bribery charges. Rolls-Royce Holdings PLC on Tuesday said it swung to a full-year net loss of £4.03 billion ($5.05 billion), stung by a settlement over corruption charges, the fall in the British pound and setbacks on high-profile aircraft engine programs, the WSJ reports. Rolls-Royce, best known for making engines for Boeing Co. and Airbus SE’s long-range planes, reported a £83 million profit the year before.” WSJ, Risk & Compliance Journal, 14 February 2017.

Just a reminder…

What is a bribery?

•    Bribery is defined as giving someone a financial or other advantage to encourage that person to perform their functions or activities improperly or to reward them.

•    Bribery can take many forms

•    Bribery can be direct or indirect (bribery paid on your behalf)

•    But there is a full defense if we can show we had adequate procedures in place to prevent bribery.

The relevant legislation

Bribery Act 2010 (UK)

•    Bribing a foreign public official or bribing a UK official, commercial bribes, requesting/receiving bribes

•    A company’s failure to prevent bribery also constitutes a criminal offence, a defence to which is available if the company can demonstrate that it has adopted "adequate procedures" to combat bribery and corruption risks

•    Facilitation payments are included within the definition of a bribe and prohibited

•    Corporate hospitality could be bribery however, ‘reasonable and proportionate hospitality which seeks to improve the image of the company’ is not penalised

Foreign and Corrupt Practices Act (FCPA) 1977 (US)

•    Prohibits payments to foreign government officials to obtain or retain business

•    Includes dealings with individuals who belong to administrative functions in government, state owned enterprises, political candidates and parties and public international organisations

•    Significant prosecution success

•    For non US listed companies trigger is whether any conduct took place in the US (a conference call with US subsidiary is sufficient)

Spanish Criminal Code 2010 (Spain)

•    Bribing a foreign public official or bribing a Spanish official, commercial bribes, requesting/receiving bribes and corporate failure to prevent bribery are all specific offences