Glossary
UK Bribery Act 2010
The UK's extraterritorial anti-bribery statute, with a strict-liability corporate offence for failure to prevent bribery (section 7). The offence applies to commercial organisations carrying on business in the UK regardless of where bribery takes place. The only defence is adequate procedures. A functioning whistleblower channel is treated as a strong indicator of adequate procedures.
Full definition
The UK Bribery Act 2010 created four offences: bribing another person (section 1), being bribed (section 2), bribing a foreign public official (section 6), and the corporate strict-liability offence of failure to prevent bribery (section 7). The section 7 offence applies to commercial organisations carrying on business in the UK regardless of where the bribery takes place, including by associated persons (employees, agents, subsidiaries). The only defence is to demonstrate the organisation had 'adequate procedures' in place; the Ministry of Justice's six principles guidance lists proportionate procedures, top-level commitment, risk assessment, due diligence, communication and training, and monitoring and review. A functioning whistleblower channel is treated by enforcement bodies as a strong indicator of adequate procedures. The Serious Fraud Office (SFO) has secured corporate convictions under section 7 (Rolls-Royce 2017, Standard Bank 2015) typically resolved through Deferred Prosecution Agreements (DPAs) with monetary penalties in the hundreds of millions. EU-based multinationals with UK operations must comply.
Related terms
- Anti-Bribery (ABC) The body of law, controls, and culture aimed at preventing the offering or accepting of bribes in commercial activity. A mature ABC programme combines statutory prohibitions (FCPA, UK Bribery Act), the ISO 37001 management standard, and internal controls including third-party due diligence and a whistleblower channel routing ABC concerns to a dedicated owner.
- FCPA The US Foreign Corrupt Practices Act of 1977 has two prongs: anti-bribery (it is unlawful to pay foreign officials to obtain or retain business) and accounting (issuers must keep accurate books and maintain internal accounting controls). Enforced by the DOJ and SEC, with settlements running from tens of millions to billions. EU multinationals with US listings comply.
- Compliance Management System The integrated framework of policies, procedures, training, and monitoring through which an organisation manages compliance risk. ISO 37301:2021 sets the canonical structure: identify obligations, assess risks, design controls (including a whistleblowing channel), train staff, monitor, review, improve. The CMS is typically owned by the compliance officer and reports to the board's audit committee.