More Due Dilligence for companies in 2011

[Italkcash News]

Apparently the KYC was not enough for the world - the new hit trend to be introduced in 2011 is the 'Bribery Act', an extension of the US Foreign Corrupt Practices Act (FCPA), and in addition to it, it covers bribery of private individuals and companies as well as foreign officials. This makes it much more dangerous than any other legislation taken out until now. The reasons behind this conclusion are several. The one that is worrying most companies and private individuals is the lack of clarity. Lack of clarity, behind the framework that explains the precise procedures, which the prosecutors will follow to establish the 'guilt' of a company. The company will be liable to do an extensive background check of all employees, suppliers or any parties with whom they do business - the definition behind extensive is not available. It is up to the prosecutor to decide what is extensive and what is not. It is also very unclear how will the past of an employee for example reflect on their current status. What if you accepted a bribe 20 years ago, does this make you liable today? And would the company you are working for be liable that they hired you?

The interesting fact is that Directors and Senior Executives will be personally liable if their organisation has particpated in any bribery related act, and they have been aware of the situation. This lifts all the protection, which an 'Ltd' was giving to the Directors and the executives.

The Act will cover both UK and foreign companies incorporated in the UK, and will monitor violations no matter if they are done in the UK or a third country.

The organisations found guilty of participating in such practices face unlimited fines and possible jail sentences.

If you were thinking that it was all over once banks implemeted the KYC, the Bribery Act proves that legislation has no limits. The consequances of implementing such policy will be felt in a year or so by all types of businesses (be large, SMEs or micro). All deals and relations in the business worls will need to be entirely 'transperant' so the Directors will be able to secure their warm comfy chairs for long years ahead.

Most of the people reading this are young entrepreneurs trying to make their way round. Read carefully about this new legislation, and act smarter from now on...

Bribery Act 2011