Wednesday, 21th September 2011UK Bribery Act Impacts the British Virgin Islands

Kyria AliWhat you ought to know.

The Bribery Act, 2010 (the "Act") came into force in July 2011 and has an international reach. As it relates to the British Virgin Islands, a British Overseas Territory, the following persons are directly impacted by this Act and could be prosecuted should they commit an offence:

• a corporate body which carries on business, or part of a business, in the UK regardless of where it has been incorporated
• a British overseas territories citizen
• a British citizen
• a British national (overseas)
• a British overseas citizen

There are four main types of offences summarised within the Act:

1. Active bribery: promising or giving a financial or other advantage to another.
2. Passive bribery: requesting, agreeing to receive or accepting a financial or other advantage; regardless of whether the bribe is received directly or indirectly or whether it is known or believed by the person committing the offence that the performance of his function or activity is improper.
3. Bribery of foreign public officials.
4. Failure of a commercial organisation to prevent bribery by an associated person; thus resulting in a corporate offence.

Participating in a bribery offence can lead to significant punishment for both individuals and corporate bodies. As a result of this Act, bribery or corruption can now lead to fines up to £100,000 and up to 10 years in prison!

So what can you, as an entity, do to mitigate or manage your risk exposure?

• Design bribery prevention policies and procedures to address the risks the entity faces.
• Promote a culture which does not encourage or facilitate bribery.
• Provide training to all staff and associates regarding the Act and effectively communicate the anti-bribery policies of the entity.
• Assess the entity's exposure to bribery risks (internal and external) on an ongoing basis and revise procedures as necessary.
• Perform due diligence procedures on all parties who will perform services for or on behalf of the entity (e.g. employees, suppliers, consultants etc.)

Do not bury your head in the sand - Act now! Should your organization be investigated, the burden of proof is on you to evidence that you took all reasonable steps to prevent bribery.

Not sure where or how to start to address this matter? Baker Tilly (BVI) Limited has extensive experience in business advisory, especially as it relates to compliance with legislation, the provision of internal and external audit services and training seminars. Our unique team of business advisors and auditors has provided assistance to various companies with respect to their compliance and regulatory needs and can assist you with identifying, mitigating and managing your risk as it relates to bribery. For further information, contact Kyria Ali FCCA CIA CFE, Head of Business Advisory, at kali@bakertillybvi.com or at +1 284 852 2584.

Download a copy of the Bribery Act, 2010 here.