WHEN IS A CHRISTMAS GIFT REALLY A BRIBE?

At this time of year, businesses usually take the opportunity to thank their clients and suppliers by sending them a gift, or in the hope of retaining or acquiring some extra business in the future.

If you are in the habit of sending Corporate Christmas gifts, will you fall foul of the Bribery Act this year? And what are the potential implications for sending them?


The Bribery Act came into force on 1st July 2011 and was introduced to prevent corruption in foreign business deals involving UK firms, covering the key areas of:

1. Bribing another person
2. Taking a bribe
3. Bribery of foreign public officials
4. Failure to prevent bribery (corporate offence)

Under the Act, gifts must be reasonable and proportionate and not intended to put the recipient under any pressure in terms of business. Mouse mats, modest Christmas lunches attended by the hosts and even Kindle electronic readers should pass the “corruption smell test”, however, a case of Champagne or an invitation to a sporting event where the host is not present, could be picked up as well as anything delivered to a person’s home address.

Christmas gifts are more likely to be considered bribes because they do not normally involve any interaction with the sender.

In light of the criminal sanctions for breach of the Act, and the adverse PR, it would be advisable for companies to use the new year to give their internal procedures and relationships with third parties a thorough review (if you haven’t done so already) so as to steer clear of any difficulties.

Ignoring the Act could have major implications, with the maximum penalty for individuals found guilty of an offence of bribery being up to 10 years’ imprisonment, a fine, or both and the maximum penalty for corporate organisations, an unlimited fine.

With the first prosecution taking place (3 years in jail!), organisations will have some defence if they can demonstrate that they have ‘adequate procedures’ in place to prevent bribery. Adopting a robust policy will ensure this, as doing nothing could still mean jail for the directors concerned.

If you would like any guidance or help with drafting a Bribery policy, Empire will be able to assist.

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