UK firms 'unaware' of corruption and bribery laws

News Article - 06 December 2007
Category: Regulatory

Despite doing business overseas, many UK firms are leaving themselves exposed to bribery and corruption by not communicating government laws to their employees, research by KPMG has revealed.

It found that 31 per cent of heads of legal departments and company secretaries at FTSE 350 firms had not informed staff of the implications of the UK's 2001 Anti-Terrorism, Crime and Security Act which means companies can be prosecuted for bribery and corruption committed by employees abroad. A further19 per cent admitted to being completely unaware of it.

"Companies appear to be exposing themselves to increased risk of prosecution through a mixture of lack of awareness of the anti-bribery rules, and a lack of engagement even when they are aware," said partner in KPMG Forensic Alex Plavsic.

The UK's Act is currently open to consultation until March 20th 2008 as the Law Commission tries to clearly define certain aspects of the rule.

KPMG's study also found that even less was known about the corresponding US law, the Foreign and Corrupt Practices Act, with 46 per cent of respondents not realising they were also subject to it.

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