Bribery should not be condoned. Few business people would dare take issue with this statement, hence the dearth of voices being raised against the U.K. Bribery Act 2010, which is now on the statute book and due to come into force in April next year. Taking issue with a piece of legislation which is intended to toughen up the existing law against bribery does not look like good corporate citizenship.
Nevertheless, plenty of reservations about the Act are being aired privately and with good reason. This is a piece of legislation with huge implications for the conduct of businesses and not just those that are British. The territorial ambitions of the Act are so far reaching that any company with operations in the U.K. could fall foul of it, wherever in the world the alleged offence may be committed. And so extreme is the Act in its attempt to wipe out corrupt practices that it does not even allow the exception for ‘facilitation’ payments that exists under the United States Foreign Corrupt Practices Act.
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Bloomberg
BAE Systems paid heavy fines over bribery allegations.
That sensible exception ensures that in countries where officials demand and expect a payment for doing their jobs, such as processing customs forms or issuing visas, it is possible for US companies to operate without falling foul of the FCPA. The Bribery Act makes no such concession.
