The Act aims to encourage businesses to expose corruption within their organisations by making it a criminal offence to give or receive a bribe. As with any legislation, the Act has its critics and its champions, but regardless of opinion, it’s essential for businesses of any size to ensure they are staying on the right side of the new law. Large international organisations already comply with similar US regulations, so it is likely that they will quickly absorb the additional requirements under UK law. However, smaller companies will need to sit up and take note.

Of the greatest concern for most small businesses has been the impact of the Act on corporate hospitality and other promotional expenses. For many small businesses, entertaining current and prospective clients is not a perk of the job, but an essential way to build and maintain good relationships.

The legislation is broad, so it could be construed that even just providing or accepting corporate hospitality might be illegal. However, concerns here are misplaced. People or businesses offering ‘normal’ hospitality (such as taking clients to dinner, providing tickets to sporting events and funding travel expenses) in proportion to the matter and without seeking to influence the recipient to make a decision in their favour, will still be acceptable. The purpose of the Act in these matters is to prevent the use of hospitality as a cover for bribing someone not to prevent companies from getting to know their clients.

So, what steps should businesses take to best prepare for these new laws? Firstly, it’s important to carry out a risk assessment and then prepare appropriate written documentation of your company’s policies with regards to operating within the law. Then you should communicate these with all staff, as well as any consultants or agents acting on behalf of your business.

Business will be held liable for any bribery or corruption committed by staff or anyone acting on your behalf, even if they were not aware of or complicit in the offence. However, all businesses have a defence under the law if they are able to demonstrate that they have adequate procedures in place, which are both well enforced and regularly monitored.

So it’s essential to ensure all parties are fully briefed and trained where required with regards to the company’s policies. Regular employee updates should be scheduled, particularly with front line sales staff and finance staff, who are the most exposed to the risk of potential wrongdoings.

It also is important to keep thorough records and receipts of all gifts, hospitality and entertainment. This is good business practice regardless of the new laws, but it will also provide clear evidence of good intentions should your business ever be called into question.

Assess the risks involved in each business transaction and make sure all staff are fully briefed as to these risks. Companies that regularly do business overseas or through overseas-based agents acting on their behalf should operate with particular caution.

In conclusion, businesses will naturally need to tread more carefully now – after all, no-one wants the Serious Fraud Office breathing down their neck. However, in the vast majority of cases, companies will have already been operating well within what is ethically, and now, legally, acceptable so there is no need to panic and overreact. Clear anti-bribery policies, concise records and good communication with all those operating on your behalf will ensure your business stays on the right side of the law.