Is there a lack of bribery enforcement?

Eighteen months on from the coming into force of the Bribery Act, and there was only one completed bribery and corruption case last year in Scotland, and only four completed by the Serious Fraud Office, according to accountancy firm Ernst & Young.

To date, there have been no prosecutions against businesses made under the Bribery Act.

The Bribery Act 2010

The Bribery Act 2010 came into force on 1st July 2011, creating offences of bribing another person and of being bribed as well as a separate offence of bribing a foreign public official.

It also created a new offence of commercial organisations failing to prevent bribery by persons associated with them and provides for the prosecution in the UK of bribery committed abroad by persons having a close connection with the UK.

Self- reporting initiative

In Scotland, the Crown Office also operates a self-reporting initiative, which allows businesses to report the discovery by them of conduct within their organisation that may amount to an offence under the Bribery Act, or under the law before 1st July 2011.

The Crown will then consider refraining from prosecuting the business and instead refer the case to the Civil Recovery Unit (CRU) for civil settlement.

First case under the self-reporting initiative

Last year Abbot Group Limited became the first company to enter into a civil settlement under the self-reporting initiative, allowing the CRU to recover £5.6 million under Proceeds of Crime legislation.

The Abbot case was the only bribery and corruption case completed by the Crown Office last year. According to Ernst & Young's UK Bribery Digest, which reviews completed bribery and corruption cases, the position was not much better in England and Wales, where the Serious Fraud Office (SFO) completed only four cases (two criminal and two civil settlements).

"There has been much talk about a tough regime for bribery enforcement, but the scale and nature of cases mean that businesses have little evidence to back this up at the moment," said Jonathan Middup, Fraud Investigation & Dispute Partner and UK leader of Anti-Bribery and Corruption services with Ernst & Young. "In particular, it continues to be a point of debate that there have still been no corporate Bribery Act cases 18 months after the legislation came into force. Businesses feel that an artificial war is being fought at the moment."

What now for 2013?

Though not prosecuted under the Bribery Act, Ernst & Young believes that the cases completed in the past year provide lessons and warnings to companies on how they may be targeted under the new regime.

Agents and intermediaries committing illegal acts in a company's name top the list of risk areas, it says, whilst certain industries – oil and gas, construction, publishing and retail - have been in the spotlight.

There is also a warning about increasing activity: according to Mr Middup, the SFO has said it has eleven active bribery and corruption cases and a further 18 under consideration.

"Given that we are also assisting with a number of issues on behalf of clients we expect that corporate Bribery Act cases will be brought into the public arena this year," he warned. "Organisations would be unwise to hold back on their compliance programmes just because the courts are currently quiet."

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