Government Outlines New Guidelines for Preventing Bribery and Corruption
The government has released new guidance to combat bribery and corruption by outlining its expectations for preventing these illegal activities. The guidance emphasizes a common sense approach when determining whether an organization is carrying on a business.
What Constitutes a Business?
According to the guidance, incorporated bodies or partnerships formed outside of the Falkland Islands will be considered as carrying on a business if they engage in commercial activities, regardless of their primary purpose. This means that organizations pursuing charitable or educational aims, or those focused on public functions, can still be caught if they engage in profit-making activities.
Associated Persons
The guidance also addresses the concept of “associated persons,” which includes individuals or bodies that perform services for or on behalf of a commercial organization. This can include:
- Employees
- Agents
- Subsidiaries
- Contractors
- Suppliers
The government emphasizes that the scope of this definition is broad, and intended to capture all persons connected to an organization who may be capable of committing bribery on its behalf.
Supply Chain Management
In cases where there are multiple entities involved in a supply chain, organizations are encouraged to employ anti-bribery procedures, such as:
- Risk-based due diligence
- Anti-bribery terms and conditions
When dealing with their contractual counterparties. This can help mitigate the risk of bribery and corruption occurring at any point in the chain.
Joint Ventures
The guidance also provides clarification on joint ventures, which come in various forms. In cases where a joint venture operates through a separate legal entity, a bribe paid by the entity may lead to liability for members if it is performed with the intention of benefiting them. However, the existence of a joint venture entity alone will not necessarily mean that its members are “associated” with it.
Conclusion
Overall, the government’s guidance aims to provide clarity and direction for organizations seeking to prevent bribery and corruption in their operations. By taking a common sense approach and implementing robust anti-bribery procedures, organizations can help ensure compliance with the law and maintain public trust.