Bribery Act 2010
UK statute creating corporate offences for bribery in domestic and overseas business; affects procurement exclusion grounds and compliance.
Definition
The Bribery Act 2010 is the UK statute creating offences for bribery: offering, promising, or giving bribes; requesting, agreeing to receive, or accepting bribes; bribing foreign public officials; and the corporate offence of failure of commercial organisations to prevent bribery. The Act applies extraterritorially: UK companies are liable for bribery committed anywhere in the world by employees or associated persons. Convictions are mandatory exclusion grounds under PCR 2015 / PA 2023 procurement regimes.
How it works in practice
The Bribery Act introduced strict corporate liability through the section 7 "failure to prevent" offence: a commercial organisation commits the offence if a person associated with it commits bribery for the organisation's benefit, unless the organisation can show it had adequate procedures in place to prevent bribery. The "adequate procedures" defence requires proportionate, risk-based anti-bribery programmes. Ministry of Justice guidance sets out six principles for adequate procedures: proportionate procedures, top-level commitment, risk assessment, due diligence, communication (including training), monitoring and review. Effective programmes include: written anti-bribery policy, training (especially for staff in higher-risk roles), gift and hospitality registers, due diligence on third parties (subcontractors, agents, partners), whistleblowing channels, periodic audit. For procurement the Bribery Act has two main effects. First, convictions are mandatory exclusion grounds: a Section 7 conviction bars the supplier from public sector bids for 5 years (sometimes longer). Second, suppliers must self-declare anti-bribery compliance at the Selection Questionnaire stage including a description of their anti-bribery procedures. Failure to maintain adequate procedures creates exposure both criminally and through procurement.
Common questions
What is the section 7 "failure to prevent" offence?
A commercial organisation commits the offence if a person associated with it commits bribery for the organisation's benefit, unless the organisation can show it had adequate procedures in place to prevent bribery. The offence is strict corporate liability: there is no need to show senior management knew of the bribery, only that adequate procedures were not in place.
What are "adequate procedures" under the Act?
Ministry of Justice guidance sets out six principles: proportionate procedures (matched to organisational risk profile), top-level commitment, risk assessment, due diligence (on staff, third parties, partners), communication and training, monitoring and review. The "adequate" threshold is fact-specific; small low-risk organisations need less than large high-risk organisations.
Does the Act apply to overseas activity?
Yes. UK companies are liable for bribery committed anywhere in the world by employees or associated persons. The Act applies extraterritorially. UK companies trading internationally need anti-bribery procedures covering overseas operations, particularly in higher-risk jurisdictions. UK Bribery Act enforcement against overseas conduct has been active since the Act came into force.