Because of the visibility and price tags surrounding the Olympic Games that kick off next month, London 2012 may be a high-profile test case for the U.K. Bribery Act’s application to corporate hospitality expenditures. The Bribery Act, which took effect in July 2011, makes it illegal for commercial organizations to fail to prevent bribes from being paid on their behalf in order to obtain or retain business or a business advantage.
Since Parliament passed the act in 2010, the U.K.’s Serious Fraud Office (SFO) has made clear that “sensible and proportionate” corporate hospitality expenditures are allowed under the act, and that it recognizes the importance of business entertaining.