Court Clerk Faces First Prosecution Under the UK Bribery Act 2010

GUEST BLOGGER

Mark Scott, J.D., CFE
ACFE Research Specialist

On August 30, 2011, the United Kingdom’s Crown Prosecution Service (CPS) — the organization that prosecutes bribery offenses investigated by the police — announced the first prosecution under the UK Bribery Act 2010. In its statement, the CPS announced that it would prosecute Munir Yakub Patel, an administrative law clerk, in relation to allegations that he accepted £500 for fixing a motoring offense.

Patel is due to appear in court this month to answer the charge.

The Bribery Act 2010 came into force on July 1 this year, updating the UK’s anti-corruption laws for the first time in more than a century.

The Bribery Act significantly helps enforcement authorities to prosecute instances of bribery. In short, the Bribery Act contains two general offenses covering the payment and the receipt of a bribe; it also contains a specific offense for the bribery of foreign public officials, and it creates a new corporate offense of failure to prevent bribery.

Although the Bribery Act is primarily designed to tighten the UK’s regulatory framework, it provides for broad jurisdiction over companies and individuals operating outside of the UK. Accordingly, entities with a presence in the UK (or that employ UK citizens) are subject to legislation that exceeds the scope of the U.S. Foreign Corrupt Practices Act (FCPA).

To help organizations understand the Bribery Act, the UK government published detailed guidance about the legislation and different procedures that organizations can put in place to prevent bribery.

The Bribery Act’s passage demonstrates a clear international trend toward more aggressive enforcement of anti-bribery laws. This trend is also evidenced by the U.S. federal government’s growing emphasis on FCPA enforcement. Accordingly, compliance with the FCPA, the UK Bribery Act, and other similar initiatives has become markedly more important for companies conducting business in foreign countries.

Check out two of the ACFE’s newest online self-study courses, FCPA Compliance and FCPA Investigations for more insight into the increasingly intricate network of laws and regulations designed to combat transnational bribery.

United, We Advance

LETTER FROM THE PRESIDENT, FRAUD MAGAZINE

James D. Ratley

ACFE President and CEO

I always return from the Annual ACFE Fraud Conference and Exhibition with a sense of wonder. Last month in San Diego we demonstrated - for the 22nd time! - the depth and diversity of our global membership.

Anyone who has been to an ACFE "family gathering" knows what I mean. We embraced longtime friends and welcomed nearly as many new ones as we developed valuable relationships while updating critical skills. That California sunshine did not hurt either.

Of course, the annual conference is not the only time we get together each year. All the ACFE's training events provide opportunities to meet our peers in person and advance our careers. In fact, speaking with you face to face is my favorite way of discovering how the ACFE is meeting your needs.

But it does not stop there; every day, members collaborate in virtual environments. Facebook, Twitter, LinkedIn and the ACFE website join us together in a 24/7/365 community.

The ACFE is steadily growing; our membership is now more than 55,000. Our formidable body of knowledge, which continues to expand, benefits all members and those who depend on us. Although fraudsters respect no boundaries, CFEs in 138 chapters in nations across the globe are always on guard against them.

CHALLENGES AND OPPORTUNITIES

Tweets and headlines confront us with ongoing news of rampant corruption. We shine sorely needed light into the dark, unethical corners of business and government to deter and detect fraud. However, amid faster-than-ever social, political and technological change, governments and industries — and those of us who work in them — are expected to do more with less. For example, the U.K. Bribery Act has just become effective. Yet at the same time, there is word that Britain’s budget woes might diminish funding to enforce the new legislation.

Read the full letter here.

Preventing a "Little Something on the Side" Under the UK Bribery Act

GUEST BLOGGER

By Scott Patterson
ACFE Media Relations Specialist

The UK Bribery Act will go into effect on July 1, 2011. Prior to this act, the U.S. Foreign Corrupt Practices Act (FCPA) was the boldest in compliance standards. The UK Bribery Act brings stronger initiatives into the international anti-corruption arena, and it needs to be addressed by companies and their officers.

This was the thrust of the message from Kenneth Yormark, CFE, CPA, CFF, during his lively presentation of "The UK Bribery Act - Raising the Bar Above the Foreign Corrupt Practices Act" at one of Tuesday's breakout sessions. Yormark, director at Navigant Consulting in New York, used the opportunity to expand on the concept of bribery as a whole and applied an examination of the new legal measure to help companies develop compliance plans and prevention measures against this fraud threat.

"Many people think if it's an acceptable cultural practice in the company, it's not a bribe. That's not true!" he said. "According to the UK Bribery Act, it has to be a law in that country the company is doing business, and then you can do it. That's a common misconception."

Read the full article here.

ACFE European Conference Begins in Brussels

GUEST BLOGGER

Allan Bachman, ACFE Education Manager

Live from the 2011 ACFE European Fraud Conference

With the most attendees and more countries represented than ever before (29), the 2011 ACFE European Fraud Conference in Brussels is off to a great start. Brussels also turns out to be a great host city, with a lot to see and do. I arrived a day early to allow for some self-guided sightseeing. The weather has been perfect for walking and taking photos.

The Pre-Conference was as topical as today’s news, featuring the UK Bribery Act and its 1 July implementation. Fredric Miller from PricewaterhouseCoopers presented a great analysis of the Bribery Act, Foreign Corrupt Practices Act (FCPA) and other anti-bribery and corruption legislation around the world. There is a lot of “wait and see” as many of us are waiting to see how the UK legislation will be enforced and prosecuted. The early cases will definitely be instructive.

Day two featured a keynote from James D. Ratley, CFE, ACFE President and CEO. His reception from the attendees was warm and his message universal. The luncheon speaker from Europol used a great slide presentation to illustrate issues Europol faces in addressing fraud around the European Union (EU) and the world.

The breakout sessions featured a variety of international speakers discussing everything from charity fraud to fraud investigation issues in specific EU countries and interviewing techniques.

The networking among attendees is a critical component of the conference and the networking reception tonight should be well attended. I’m looking forward to meeting even more attendees and hearing their stories and backgrounds. Now, on to the next session!

Are you in Brussels? Tell us how the conference is going for you in the Comments section below.

One-Man Fraud Squad No Longer the Most Effective Way to Fight Corruption

GUEST BLOGGER

James D. Ratley
ACFE President and CEO

As I’ve found throughout my career, professional synergy has enormous value. When I was a young investigator on the Dallas police force, attending college part-time to get my accounting degree, one person described me as a “one-man fraud squad.” That may sound impressive, but it’s not the most effective way to fight corruption. In those pre-ACFE days, though, there were no other options. But no longer is that the case. Perhaps the best illustration of this is the upcoming 2011 ACFE European Fraud Conference, April 17-19.

For the first time in recent years, the ACFE will host the conference on the Continent itself, fittingly in Brussels, capital of the European Union. There’s excitement in the air about this gathering, and with good reason.

Fraud fighters from all over the world will come to rub shoulders and share thoughts with representatives of some of the biggest players in the government and industry. In short, this ACFE conference is your best source of insight on complying with the complex web of regional and national anti-fraud laws and regulations. And you won’t find a better opportunity to build rewarding relationships with your peers.

Sharing their anti-fraud experience and practical compliance insights with you will be officials from the European Commission and regulators from other global regions. Joining them will be an equally international group of corporate leaders sharing the fraud-fighting techniques they’ve found particularly effective in the worldwide marketplace. Plus, you’ll hear from Jeffrey Robinson, author of some of the most widely read works on fraud.

As the go-live date for the U.K. Bribery Act nears, you want to know how it will interact with the U.S. Foreign Corrupt Practices Act and the Organization for Economic Cooperation and Development Anti-Bribery Convention. That’s what the European Conference will tell you.

Sessions such as Globalization of Fraud and the Need for Fraud Examiner Cooperation; Fraud Investigations in Germany, France, and the UK; The Protection of the Financial Interests of the EU; and Pitfalls of Investigating Fraud in Russia will provide practical insights for your immediate use.

And with the UK Bribery Act scheduled to take effect as soon as certain of its provisions are clarified, the conference session titled, The UK Bribery Act of 2010: A Fraud Practitioner’s Perspective will focus you on the Act’s most controversial aspects and how to prepare for their resolution by legislators and regulators.

Of equal practical value will be the pre-conference session, The Global Challenges of Fighting Bribery and Corruption, which assesses the FCPA’s, the UK Bribery Act’s and OECD’s requirements and explains how various kinds of affected entities can best meet them.

I, my fellow speakers, and the ACFE will make the 2011 European Conference personally and professionally rewarding for attendees. We look forward to seeing you there!

To register for the ACFE European Fraud Conference, go here.