Anticorruption conventions and legislation have global reach and introduce compliance demands on companies to prevent bribery. It is important for Philippine companies and international companies doing business worldwide or intend to export from the Philippines to be aware of these conventions and legislation in order to avoid risks.
Of course, having signed the Integrity Pledge of the Integrity Initiative and living up to the commitments laid down in the Pledge is an excellent foundation to doing business locally
and internationally.
Let me highlight some of the conventions and legislation:
UK Bribery Act 2010
The UK Bribery Act 2010 establishes company liability for corrupt acts committed by persons acting on behalf of the company. The Act prohibits bribery of public officials and business-to-business bribery. With global jurisdiction, companies can be held liable in the UK for acts of corruption committed by employees, agents or subsidiaries anywhere in the world. Unlike the Foreign Corrupt Practices Act (FCPA), the Bribery Act does not distinguish between small and large bribery payments, meaning facilitation payments are prohibited.
The United Nations Convention against Corruption
The United Nations Convention against Corruption (UNCAC) is the most comprehensive anti-corruption convention, entering into force in December 2005. It covers a wide-range of corruption offenses, including domestic and foreign bribery, embezzlement, trading in influence and money laundering. The UNCAC provisions obligate State Parties to take a number of public and private anticorruption measures:
European anticorruption conventions Council of Europe Criminal Law Convention on Corruption (COE Criminal Law Convention)
The COE Criminal Law Convention aims to coordinate the criminalization of corrupt practices, provide complementary criminal-law measures and improve cooperation for the prosecution of offenses. It entered into force in 2002, and compliance is monitored by the Group of States against Corruption.
OECD Anti-Bribery Convention
The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (OECD Convention), adopted in 1997, addresses bribery of foreign public officials. Its aim is to create a level playing field between OECD countries by subjecting countries to the same criminal standards. Before the OECD Convention, the US was the only OECD country that prohibited its companies from bribing foreign officials. The OECD Convention does not address private (business-to-business) bribery.
US Foreign Corrupt Practices Act
The US Foreign Corrupt Practices Act (FCPA) of 1977 is the most widely enforced anticorruption law. It is the first to introduce corporate liability, responsibility for third parties and extraterritoriality for corruption offenses, meaning companies and persons can be held criminally and civilly responsible for corruption offenses committed abroad.
African Union Convention on Preventing and Combating Corruption
The African Union (AU) Convention on Preventing and Combating Corruption, adopted in 2003, addresses corruption in the public and private sectors. It represents a consensus on what African countries should do in the areas of prevention, criminalization, international cooperation and asset recovery. Its provisions criminalize domestic and foreign bribery, diversion of property by public officials, trading in influence, illicit enrichment, money laundering and concealment of property.
Inter-American Convention Against Corruption
The Inter-American Convention against Corruption (IACAC), adopted in 1996, aims to promote and strengthen the mechanisms to combat corruption, and to promote, facilitate and regulate cooperation to ensure the effectiveness of the measures to combat corruption in the performance of public functions. The IACAC establishes a number of anti-corruption measures.
Chinese anticorruption laws
China’s anticorruption provisions are largely contained in the Anti-Unfair Competition Law of the PRC and the Criminal Law of the PRC. China has long held a tradition of gift-giving, known as Guan Xi, in all types of business transactions. The country has embarked on an aggressive anti-corruption campaign, and strong enforcement is likely to continue in the coming years.
Canadian Corruption of Foreign Public Officials Act
The Corruption of Foreign Public Officials Act (CFPOA) is the Canadian legislation implementing its obligations under the UN Convention against Corruption. The CFPOA applies to persons and companies and makes it a criminal offense for persons or companies to bribe foreign public officials to obtain or retain a business advantage.
Russian Federal anticorruption law
Russia’s Federal Anti-Corruption Law 273, Article 13.3 requires companies operating in the country to implement anticorruption compliance programs containing specific anticorruption measures. Failure to comply carries the risk of heavy fines, the extent of which depends on a company’s willingness to cooperate with authorities. Russian law does not provide an “adequate procedures” on legal defense against corruption offenses.
German anticorruption legislation
German anticorruption provisions are contained in the Law on Fighting Corruption, the Criminal Code and the Administrative Offences Act. The Criminal Code’s provisions apply to persons, while companies face civil responsibility under the Administrative Offences Act. Corruption offenses committed abroad can be enforced in Germany.
Brazilian Clean Company Act
Brazil’s Clean Company Act 2014 (Law 12,846) holds companies responsible for the corrupt acts of their employees and introduces strict liability for those offenses, meaning a company can be liable without a finding of fault. The Act provides strict civil and administrative penalties but no criminal penalties for companies. However, the Criminal Code establishes domestic criminal offences.
While government officials and businessmen have to be aware of all these conventions and legislation, we also know that in many countries around the world, including those listed above, corruption happens. At the same time, the Integrity Initiative monitors the cases/the companies involved and can provide information on the status of these cases.
For more information contact Schumacher@integrityinitiative.com.
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