After being delayed for almost a year, the new U.K. Bribery Act finally takes effect in July. The controversial and wide-ranging legislation, rushed through Parliament just before 2010′s general election, was originally scheduled to take effect last October. However, the law’s start date was pushed back twice in order to allow companies to put in place what the Ministry of Justice describes as “adequate procedures” for preventing bribery.
The final guidance, issued in April, eased worries among multinational companies by stating that a listing on the London Stock Exchange will not in itself make a business subject to the act. However, any company that has a U.K. office, that has employees who are U.K. citizens, or that provides any services to a U.K. organization will still be covered by the bill, which carries unlimited fines and an increased maximum jail term of ten years. “It’s wider ranging even than the [U.S.'s Foreign Corrupt Practices Act],” says Lord Goldsmith QC of Debevoise & Plimpton. “It’s going to affect all companies with business in the U.K., even if they’re not incorporated here.”
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