london finance law consultant christopher wakem on 2013 bribery act
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The UK recently introduced the 2013 Bribery Act which requires all public officials in the Isle of Man to immediately report any suspicions of bribery to authorities. While the rest of the law is virtually identically to existing UK legislation, this particular clause is unprecedented, and should be duly noted by businesses in the region, as those convicted of bribery could be look at harsh fines and as many as 10 years in prison. There is no such law in the UK, where officials who are offered a bribe, or know of an offer made to someone else, have no legal obligation to report what they’ve witnessed. Experts speculate the law was drafted out of concern about the small size and interconnectedness of the Isle of Man parliament, deeply incentivising against whistleblowing. With the passage of section 13, officials who do not disclose any offers received are committing a punishable offence. Furthermore, according to the legislation, it makes no difference whether the activity is performed or related to the Isle of Man, the UK, or even another country elsewhere in the world. And even seemingly harmless gestures such as offering tickets to sporting events could now be off limits–unlikely if the intent is purely hospitality and promotion, but business officials are advised to talk to a lawyer before taking any action which might be construed as bribery. Here are some tips for reducing your company’s risk of non-compliance with the new legislation: Assess your business’s susceptibility to and from bribery. Create and implement an anti-bribery policy with specific procedures. Create a culture of zero bribery tolerance from the top down. Communicate this explicitly within the company, and in relations with the public. Provide training to all employees. Do your research before establishing a relationship with a third party or a new market.TRANSCRIPT
2013 Bribery Act Clamps Down on Isle of Man Businesses By Christopher Wakem, Financial Law Consultant, Lightbringer Solutions January, 28, 2014 The UK recently introduced the 2013 Bribery Act which requires all public officials in the Isle of Man to immediately report any suspicions of bribery to authorities. While the rest of the law is virtually identically to existing UK legislation, this particular clause is unprecedented, and should be duly noted by businesses in the region, as those convicted of bribery could be look at harsh fines and as many as 10 years in prison. There is no such law in the UK, where officials who are offered a bribe, or know of an offer made to someone else, have no legal obligation to report what they’ve witnessed. Experts speculate the law was drafted out of concern about the small size and interconnectedness of the Isle of Man parliament, deeply incentivising against whistleblowing. With the passage of section 13, officials who do not disclose any offers received are committing a punishable offence. Furthermore, according to the legislation, it makes no difference whether the activity is performed or related to the Isle of Man, the UK, or even another country elsewhere in the world. And even seemingly harmless gestures such as offering tickets to sporting events could now be off limits–unlikely if the intent is purely hospitality and promotion, but business officials are advised to talk to a lawyer before taking any action which might be construed as bribery. Here are some tips for reducing your company’s risk of non-‐compliance with the new legislation:
• Assess your business’s susceptibility to and from bribery. • Create and implement an anti-‐bribery policy with specific procedures. • Create a culture of zero bribery tolerance from the top down. Communicate
this explicitly within the company, and in relations with the public. • Provide training to all employees. • Do your research before establishing a relationship with a third party or a
new market.
Christopher Wakem is a London-‐based legal consultant/contractor who has worked in the independent bar, private practice, and in-‐house sectors. He has obtained law degrees from the University of Sheffield and University College. Mr. Wakem has provide advice in a wide array of matters, both contentious and non-‐contentious, through his company Lightbringer Solutions Ltd. Chris has helped companies large and small establish risk management policies, develop start-‐up procedures, negotiate framework agreements, secure insurance coverage, and deal with Anti-‐Money-‐Laundering and Anti-‐Bribery and corruption matters.