Financial crime

Aside from the obvious brown envelope scenario, bribery has taken on a wider definition and responsibility for ensuring that it does not...

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...item means that firms operating in the UK must have systems and controls in place to monitor, identify and prevent bribery taking place.

Bribes are not just monetary offerings, they can be an ‘advantage’ and include gift...

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... from straight forward! The legal test is what a reasonable person in the UK would accept as proper.

We have already seen that not only are the offences in the Act outlined for the individual committing the offence, but also businesses are responsible for ensuring that their employees and importantly agents, represe...

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...ould also affect authorisation by the Financial Conduct Authority and ability to do business with the public sector anywhere in the EU.

Who prosecutes?

The Serious Fraud Office (SFO)

City of London Police

It is defined as a financial or other advantage. This extends from merely money to gifts, hospitality, services given free and payments waived. The key indicator of whether or not there is a bribe is proprietary. If the financial or other advantage is ‘improper’ is determined by whether it is intended to induce someone to behave or perform a ser...

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...s of Interest policy and it is important that any bias to the provider is robustly addressed and that customers are made aware of the potential conflict. Firms should consider very carefully before accepting free services from providers and make sure that such services are for the benefit of clients (training for example, can be for the benefit of clients).

Firms are responsible for anyone acting for them including outsourced providers, agents, introducers, representatives and other intermediaries in a chain, not just those with whom they deal directly.

Example scenarios

An account executive at a commercial insurance brokerage agreed to include the personal insurance premiums of a managing director within the premium payment plan of his corporate customer in order to secure the business. This would be an improper incentive under the Bribery Act and the concealment of the benefit from the Inland Revenue and possibly the financial director are indicative of this impropriety.

A financial advice firm offering high net worth individuals’ investment advice and pensions has introducers in various countries and the UK. The regulator on visiting the firm found that introducers were in ...

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...entence and a curfew.

In 2013 Li Yang was found guilty under the Act for attempting to bribe a University to grant him a degree when he had narrowly failed the course. He offered £5,000 and he received a 12-month prison sentence and had to pay substantial costs.

The SFO in 2014 successfully prosecuted executives for giving and taking bribes in relation to a case involving some £23 million in bribes involving Sustainable AgroEnergy PLC and in 2015 a UK printing firm, Smith & Ouzman were found guilty of bribing African officials nearly £400,000 in order to secure contracts in Africa.

In January 2019 two accomplices were jailed after offering bribes to bank employees who reported the matter to their managers who then involved the police.

Thus, it appears that the objectives of the Act are being fulfilled.