UK SMEs withdraw from trading in high-risk countries for fear of prosecution
The ongoing threat of corruption in high-risk countries poses a danger to international growth, trade and competition, the British Standards Institution (BSI) and the City of London Police have warned at the launch event of their anti-bribery training programme today.
The introduction of the UK Bribery Act 2010 has been accompanied by a flurry of legal and commercial advice creating confusion among many SMEs as to their responsibilities and constraints under the act.
As a result many have been found over-compensating for or simply ignoring the act, “resulting in inefficient or high-risk business practice”, the firms warned.
In addition, many SMEs across all sectors have made the decision to withdraw from trading in high-risk countries for fear of prosecution.
The number of bribery cases in the UK is on the rise. Some 25 individual cases of bribery are currently being investigated by the City of London Police in addition to investigations by other agencies such as the Serious Fraud Office.
Since the inception of the Overseas Anti-Corruption Unit, 28 suspects and one corporate entity have been charged. Individuals in breach of the current legislation face up to 10 years in prison and companies risk unlimited fines.
In response to the rise in bribery cases, the City of London Police and BSI have launched a series of anti-bribery management (based on BS 10500) and bribery investigation training programmes that will give UK businesses peace of mind about their anti-bribery strategies.
The training programmes aim to help UK businesses implement an effective anti-bribery management system and how to conduct an internal investigation of bribery.
City of London Police commissioner Adrian Leppard QPM said: “Bribery is the most insidious form of corruption. It permeates and destabilises the social fabric of developing societies and denies communities their rightful aid. Good business must be seen to identify and deter bribery, suffocating its opportunity to manipulate and debase transactions. Business needs systems to achieve this and the BS 10500 Anti-Bribery Management System Standard sets a benchmark for good business practice both domestically and internationally.”
BSI chief executive Howard Kerr said: “The ongoing threat of bribery related corruption has undoubtedly triggered concern amongst UK business leaders. No organisation is immune from bribery risk, however, organizations can demonstrate that they have adequate procedures in place to prevent bribery and the financial and reputational costs associated with it.
“The development of a specific anti-bribery standard (BS 10500) responds to this business concern and helps organizations turn the legal requirements of the Act into practical, cost effective measures and shows them how to implement the right controls across their business and supply chain.”
1 Readers' comment