Many companies, particularly small to medium sized entities, will look at this and think it does not really apply to them, and in some cases they may be right. However, it is a foolhardy board of Directors that does not consider carefully whether the legislation applies to their organisation.

Section 7 creates a new offence which is likely to have a very wide effect. A commercial organisation will be liable for prosecution if a person associated with it bribes another person with the intention of obtaining or retaining business or an advantage associated with that business (for example facilitation payments or expensive trips for potential clients and their extended families). A defence is available if the organisation can show that it had adequate procedures in place to prevent bribery taking place. Penalties for getting it wrong could mean an unlimited fine for the company and, if it is proven that an officer of the company was implicit in the bribery, they could find themselves in prison for a maximum of 10 years.

The Ministry of Justice has produced guidance on putting in place adequate procedures. Taking legal advice now will ensure that your organisation is as protected as it can be.