UK Bribery Act – Chief Compliance Officers Speak

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 As the UK Bribery Bill becomes Law, we asked delegates and speakers to IQPC Exchange’s Corporate Compliance Exchange™ what the Act means to them.

The Bribery Act was passed by parliament at the end of last week, following pressure to reform the UK’s bribery and corruption laws. Fundamentally, the Act has now made it an offence for companies to fail to adequately prevent bribery, and makes it clear exactly what constitutes a bribe, to provide a solid framework for prosecution.

Internationally, there had been concern about the UK’s outdated bribery laws, but the Act now ensures that Britain is compliant with the OECD Anti-Bribery Convention and it is now even stronger than the FCPA. Asma Hussain, Director Global Ethics & Compliance EMEA, Eaton (delegate at Corporate Compliance Exchange™) says of the Act, “The bill sends a powerful signal to the business world and will help to alienate companies who are not ethical in their business practices. Eaton believes that the provisions contained in the bill are positive in ensuring a level playing field for all businesses and in helping to facilitate a business environment in which quality and excellence are the best means of business success.”

Of the delegates and speakers to IQPC Exchange’s upcoming Corporate Compliance Exchange™ (May 16^th – 18^th 2010), those that we spoke to had awareness of the Bribery Bill, but all indicated that the impact would not be significant. For Dirk-Stephan Koedijk, SVP Chief Compliance Officer, Henkel (speaker at Corporate Compliance Exchange™) bribery is already forbidden by their code of conduct, including detailed sections on facilitation payments, gifting and entertainment. Interestingly, Mr. Koedijk believes that Henkel’s industry (FMCG) is at a lower risk of bribery than other industries. “To my experience and this of many fellow colleagues in compliance, bribing of customers takes place more often when big projects are in place. We have pricelists out to all customers and most of our customers have as strict a gift and entertainment policy in place as we have. In the industrial area most of the time, Henkel’s part of the total project is very much below one percent of the total goods purchased”

This dedication to anti-corruption is of course a common policy for multi-national companies. Pedro Montoya, Chief Compliance Officer, EADS (speaker at Corporate Compliance Exchange™) tells us that EADS has “a 10 years old, group wide policy, which has been updated three times, benchmark with best in class. The policy focuses on centralised control of intermediaries”. When questioned if his role will change now that the Bribery Bill has been passed, Mr. Montoya commented that corruption has always been the first priority of the Chief Compliance Officer, so no change is necessary. Nonetheless, he welcomes the fact that the UK is now aligned with the most advanced Western jurisdictions.

Eaton too has advanced anti-bribery provisions. Eaton has been frequently ranked as one of the most ethical companies in the world and is currently implementing two new anti-corruption clauses to their existing third-party agreements to strengthen their defence against corruption. Their Law Department as well as Ethics and Compliance Department jointly train employees on anti-corruption laws and company policies. Like Henkel and EADS, as Eaton’s anti-bribery provisions are so stringent, they do not anticipate any changes to their existing policy as the UK Bribery Bill does not contain any additional restrictions.



Eaton, EADS and Henkel are fortunate that they are pioneers of compliance, but they could be the exception rather than the rule. The focus on anti-corruption for most multi-national companies is born as a result of the FCPA, but now that the UK Bribery Act is stronger than the FCPA, some companies will no doubt need to re-think their policies to avoid prosecution when operating in the UK. For example, the Bribery Act has no exception for facilitation payments and has criminal penalties of up to 10 years, compared to five years under the FCPA.

Pedro Montoya, EADS, confirms that EADS regularly check that their policy complies with anti-bribery provisions in Spain, France, Germany and the USA – and that it also complies with the new UK provisions. “We are willing to use the guidelines that the UK government should issue with the new Law to confirm our benchmarking with best practices: US Sentencing Guidelines, 2009 OECD recommendations, Woolf report, etc. It is always helpful to challenge our compliance program with international guidance.”

Asma Hussain, Eaton, says they are also compliant with the new UK law, “The bribery bill underlines the importance of “Doing Business Right”, a philosophy that forms the core of Eaton’s strategy and business practices on a global basis.” “The new regulation requires all companies to ensure that effective anti-corruption measures are tailored to reflect the size of the organisation and the risks it is facing.  Eaton has a Code of Ethics and an Anti-Corruption Policy in place. We conduct training for all relevant employees on our policies and have implemented a mechanism to ensure that such trainings are regularly repeated and refreshed”

This sample of attendees to the Corporate Compliance Exchange™ demonstrates respect and awareness of the new UK regulation, and a commitment to reevaluation, benchmarking and best practice of internal policies. However, not all companies will be fortunate enough to already have adequate provisions in place and when the new law comes into play, companies that fail to demonstrate sufficient protection against bribery could face hefty fines and even imprisonment. Asma Hussain, Eaton, recognises that some companies will need assistance in preparing and suggests that governments, authorities and/or organisations should “provide template provisions and establish a helpline which companies can turn to when they are in need of guidance.”

The Corporate Compliance Exchange™ offers Chief Compliance Officers and General Counsel the opportunity to learn from thought-leaders such as Asma Hussain, Pedro Montoya and Dirk-Stephan Koedijk. The delegates and speakers are senior compliance executives, ensuring the best networking and learning opportunities on a truly peer-to-peer level. Chandu Krishnan, Executive Director of Transparency International UK also joins the speaker panel. Furthermore, leading solution providers will be in attendance to take meetings with Chief Compliance Officers.

Please contact +44 (0) 207 368 9709 to request your invitation. Visit www.complianceexchange.co.uk for a full agenda.

Contributor:   Lindsay Lovell

Lindsay Lovell is the Marketing Manager for IQPC Exchange Europe, with responsibility for a portfolio of senior-level networking events in the legal industry. She is also a contributor to Legal IQ.

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