Business owners in the UK could be at risk from anti-bribery and corruption laws because most of their employees don’t understand them, a new report suggests.
A report from KPMG Forensic shows that nearly a third (31%) of company secretaries and heads of legal departments have not made employees aware of the UK’s 2001 Anti-terrorism, Crime and Security Act. The Act states that UK companies can be prosecuted for bribery and corruption committed abroad by their employees.
Alex Plavsic, a partner in KPMG Forensic, believes that companies are at risk, because of two reasons: a lack of awareness of the anti-bribery rules, and a failure to educate their staff about them.
He added: “In the UK, the Serious Fraud Office is known to be actively investigating a number of cases. Some UK companies may well suddenly sit up with a jolt and take notice as and when prosecutions are announced.”
Meanwhile, the Foreign and Corrupt Practices Act provides American authorities with the power to prosecute foreign companies that trade in the US even if those offences take place abroad. However, the report found that 46% of respondents who carry out business in the US either wrongly think that the Act does not apply to them, or did not know whether they were subject to it.
Jennifer Hammond, director in KPMG Forensic, said: “The lack of awareness by companies of the scope of US anti-corruption laws is especially concerning.
“The US regulators take an uncompromising approach to this issue, and have carried out an increasing number of investigations since 2001.
“Ignorance will not be an acceptable excuse to the US regulators.”
© Crimson Business Ltd. 2007
