UK enacts new anti-graft law; bribe-givers face 10-yr sentence
01 Jul 2011
In a move that should be an eye-opener for Indian Prime Minister Manmohan Singh's government beleaguered by corruption scandals, the United Kingdom today brought into force a stringent Bribery Act.
This would affect all UK companies, and potentially, those that do business with them.
Under the act, if an employee or agent of a firm is paying bribes on its behalf, then the firm may be liable regardless of whether it was aware of the payment or not. It would face potentially unlimited fines or even jail sentences of up to 10 years.
The legislation is aimed at making it easier to prosecute companies who make corrupt payments abroad. Tellingly, observers feel the act could put UK businesses at a disadvantage when doing business in Asia.
The Bribery Act overhauls existing laws dating back to 1889, and makes it illegal to offer or receive bribes or even to fail to prevent bribery. Both British and foreign companies are covered, as long as they have some operations in the UK.
The act also applies to individuals.
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