Moore Stephens urges swift action before Bribery Act

Moore Stephens has said the insurance industry must act promptly to ensure they have proper anti-bribery and corruption controls in place ahead of the introduction of the UK Bribery Act 2010.

The Act, which comes into force next April, will introduce stricter controls requiring all companies to review their internal procedures ahead of the implementation deadline, and will create four categories of offence:

• Offering, promising or giving a bribe to another person;
• Requesting, agreeing to receive or accepting a bribe from another person;
• Bribing a foreign public official, and
• A corporate offence of failing to prevent bribery

It will now be illegal to offer bribes with the intention of influencing foreign public officials in their official capacity with a view to obtaining or retaining business.

Jonathan Steward, compliance consultant at Moore Stephens, said: "The corporate offence of failing to prevent bribery has serious potential consequences for the insurance sector, incorporating, as it does, not just the staff of individual companies but also those persons undertaking activities on their behalf.

"A person is deemed to be associated with an organisation if that person performs services on behalf of the organisation. This very broad definition can include not only other entities within the group and their directors and employees, but also consultants and agents. This will resonate particularly with the insurance industry, where many brokers and underwriters typically conduct business through agents and other representatives and third-party producers.

"It is clear that companies should ensure that controls are in place, otherwise they run the risk not only of becoming victims of fraud but also of falling foul of both government and industry regulations."