Clifford Chance

Q&A on the UK Bribery Act for the Insurance Sector

31 March 2011

The UK Bribery Act (the "Act") received Royal Assent in April 2010 and will come into force on 1 July 2011, following yesterday's publication of the Ministry of Justice's Guidance for commercial organisations. The Act replaces the fragmented and complex bribery-related offences at common law and in the Prevention of Corruption Acts 1896-1916 with:

1. general offences of bribery (offering, promising or giving of a financial or other advantage in return for the improper performance of a function or activity – i.e. active bribery) –s.1 of the Act;
2. general offences of being bribed (requesting, agreeing to receive or accepting of a financial or other advantage in return for the improper performance of a function or activity – i.e. passive bribery) – s.2 of the Act;
3. a discrete offence of bribery of a foreign public official – s.6 of the Act; and
4. a new corporate offence of failure by a commercial organisation to prevent a bribe being paid for or on its behalf (the "corporate offence"), subject to a defence of "adequate procedures" being in place to prevent a bribe – s.7 of the Act.

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