Transcript BCC Presentation - British Chamber of Commerce Thailand

www.pwc.com
UK Bribery Act 2010
The Time is to Act Now
March 2 2011
Profile
Peter Hamilton – PwC Thailand, Forensics
Peter has over 10 years of dispute consulting and project
management experience focused in fraud investigations,
prevention and detection in Asia, Gulf and Europe. Within
PwC Thailand he and has performed multiple local internal
investigations for multinational companies with Thailand
business operations. He has lead forensic teams to conduct
investigations in relation to fictitious and nominee vendors,
bribery and kickback fraud allegations. Prior to joining PwC
Thailand he was employed as an Associate Director for
another Big 4 firm in Thailand where he practiced forensic
services for three years. He has successfully lead multiple
discovery and analysis engagements in the area of fraud
and FCPA investigations, computer forensics and multidisciplinary dispute consulting.
Act Now or Pay Later
PwC
2 March 2011
2
Agenda
 UK Bribery Act 2010 – Salient features
 The Time is to Act Now
 UK Bribery Act vs. FCPA
 Guidance on procedures to prevent bribery
 Challenge in Implementing Procedures to Prevent
Bribery in Thailand
 Next Steps
Act Now or Pay Later
PwC
2 March 2011
3
UK Bribery Act 2010 – Salient features
Passed into law
on 8 April 2010,
commences
April 2011
Four key offences
 Active bribery – paying (public and private sector)
 Passive bribery – receiving (public and private sector)
 Bribery of a foreign public official
 Corporate offence of failure to prevent
Liability is triggered by a person acting for or on behalf of the organisation paying a bribe
Defence is “adequate procedures”
Where a corporate commits bribery, senior officers who “consent” or “connive” are also
liable
Act Now or Pay Later
PwC
2 March 2011
4
The Time is to Act Now
Penalties
Implications
10 years imprisonment and /or unlimited
fine
Reputational damage
Potential debarment from tendering for
government contracts
Personal liability for senior officers who
“consent or connive” at offence by corporate Professional fees and management costs of
entity
defending an investigation
Investor confidence
Act Now or Pay Later
PwC
2 March 2011
5
UK Bribery Act vs. FCPA
Differences from FCPA
Convergence with FCPA
 Applies to public and private sector

Exposure for acts of associated parties
 Facilitation payments criminal
 Active and passive bribery

Extra-territorial reach

Increased enforcement actions
Act Now or Pay Later
PwC
2 March 2011
6
Guidance on Procedures to Prevent Bribery
Ministry of Justice has
issued guidance in six
principles to aid the
prevention of bribery
Six key areas of focus:
Principle 1 : Risk assessment
Principle 2 : Top level commitment
Principle 3 : Due diligence
Principle 4 : Clear, practical and accessible
policies and procedures
Principle 5 : Effective implementation
Principle 6 : Monitoring and review
Act Now or Pay Later
PwC
2 March 2011
7
Challenge in Implementing Procedures to Prevent
Bribery in Thailand
Principle 1:
Risk assessment
Fear of finding the ‘unknown’
Principle 2:
Tone at the top
Absence of a strong ‘tone at the top’
Principle 3:
Due diligence
Use of agents or intermediaries – extensive, varying utility
Driven by business consideration vs. reputation or risk
Frequency of risk assessment
Issues of form over substance
Inconsistency in actions, behavior and words
Principle 4:
Awareness re: local anti-corruption law
Practical policies More questions than answers
& procedures
More akin to policy documents with little practical relevance
Act Now or Pay Later
PwC
2 March 2011
8
Challenge in Implementing Procedures to Prevent
Bribery in Thailand (Cont)
Principle 5:
Effective
implementation
Principle 6:
Monitoring and
Review
Act Now or Pay Later
PwC
Absence of ongoing training
Do’s and don’ts v. holistic solutions
Confidence deficit
Ineffective monitoring of gifts, entertainment, hospitality etc.
2 March 2011
9
Next steps
Specify
1. Assess risk
2. Evaluate existing controls
3. Target operating model
4. Remediation planning
Build
5. Design enhancements
Implement
6. Roll-out
7. Implement
Business takes ownership
8. Test
9. Follow-up
Embed
10. Ongoing
monitoring;
continuous
improvement
now
pay
later
ActAct
now
or or
pay
later
21 October 2010
PwC
PwC 18
2 March 2010
Thankyou
More information is available on:
www.pwc.co.uk/briberyact
Alternatively, contact:
Vorapong Sutanont
Director, Advisory, PwC Thailand
+66 (0) 819819439
[email protected]
Peter Hamilton
Manager, Advisory, PwC Thailand
+66 (0) 819872330
[email protected]
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