Why It Matters
Bribery is estimated to cost the global economy over $1.5 trillion annually (World Bank). It distorts markets, undermines democracy, and diverts resources from public services. Anti-bribery enforcement has intensified dramatically — the UK Bribery Act can prosecute companies for failing to prevent bribery, even if no executive authorized it. Organizations operating internationally face overlapping anti-bribery obligations across multiple jurisdictions.
Active vs Passive Bribery
- Active bribery — offering, promising, or giving a bribe (the briber)
- Passive bribery — requesting, agreeing to receive, or accepting a bribe (the bribed official)
Both sides are criminal offenses. Under the FCPA, only active bribery of foreign officials is covered. The UK Bribery Act covers both, plus domestic commercial bribery and a separate offense of failing to prevent bribery.
What Constitutes a Bribe
"Something of value" is interpreted broadly:
- Cash and wire transfers — direct payments
- Gifts and entertainment — lavish meals, travel, event tickets, luxury items
- Jobs and internships — offered to officials' family members
- Charitable donations — directed by an official for personal benefit
- Discounts and preferential terms — non-market-rate business arrangements
- Third-party payments — routed through agents, consultants, or intermediaries
- Political contributions — made to benefit an official
Major Anti-Bribery Laws
US Foreign Corrupt Practices Act (FCPA)
- Prohibits bribing foreign government officials to obtain or retain business
- Applies to US companies, US persons, and any company listed on US exchanges
- No de minimis threshold — even small facilitation payments are risky
- Penalties: up to $250K + 5 years (individuals); $2M per violation (companies)
UK Bribery Act 2010
- Broadest anti-bribery law in the world — covers domestic and foreign, public and private bribery
- Section 7: Failure to prevent bribery — strict liability offense for organizations
- Adequate procedures defense — only defense is demonstrating effective anti-bribery procedures
- No facilitation payment exception
- Penalties: unlimited fines, up to 10 years imprisonment
EU Anti-Corruption Package (2023)
- Proposed harmonized anti-corruption rules across EU member states
- Criminal liability for both active and passive corruption
- Minimum penalties and cross-border enforcement mechanisms
Anti-Bribery Compliance Program
The UK Ministry of Justice identifies six principles of adequate procedures:
- Proportionate procedures — risk-based approach
- Top-level commitment — board-level ownership
- Risk assessment — identifying bribery risks (countries, sectors, channels)
- Due diligence — vetting third parties, agents, and intermediaries
- Communication and training — ensuring staff understand the rules
- Monitoring and review — testing effectiveness, updating as risks change
Key Regulation
- US FCPA (15 U.S.C. §§ 78dd-1 to 78dd-3) — foreign bribery
- UK Bribery Act 2010 — comprehensive anti-bribery
- ISO 37001:2016 — Anti-Bribery Management Systems
- OECD Anti-Bribery Convention — international framework (44 signatories)