Britain’s
new Bribery Act comes into force tomorrow, 1 July. From tomorrow, British
nationals and British companies are subject to new rules which tighten
and extend legislation governing their activities overseas.
The
Bribery Act makes it illegal to give or receive a bribe anywhere in the
world. It also requires companies to take steps to prevent their
employees and agents acting on their behalf from indulging in bribery. A
company might claim that it had no knowledge of what its employee was
doing, but unless it can prove that it had the policies and procedures
in place to prevent bribes from being given or taken, it will still be
liable to prosecution.
What
does this mean for companies operating in Romania? Firstly, it means that if a British national or a British company is
involved in bribery in Romania it will be breaking the law in the UK and
not just in Romania, and is liable to prosecution by the British
authorities.
Secondly,
it means that British companies planning to do business in Romania will
need to assess the risks of corruption and take measures to protect
themselves against that risk. The company will need to be assured that
all of its employees and anyone acting on its behalf are aware of their
responsibilities under the Bribery Act and that it has procedures in
place to ensure that the law is being fully observed.
A
clear policy of zero tolerance for bribery might mean that some
business is lost. British companies might lose out to other companies
that are less scrupulous. But no good business will be lost. In the long
term British companies will do best and Romania will benefit most from a
business climate which is transparent and clean. Romanian companies and
institutions can contract with British companies with the assurance
that those companies are legally bound in their home jurisdiction to do
business cleanly and honestly in Romania. That can only enhance
Britain’s reputation as a quality investor. And in this way British
companies will be doing their bit to assist Romania with its efforts to
stamp out corruption, to clean up the business environment, and to put
an end to the culture of giving and receiving bribes.