MercoPress. South Atlantic News Agency

OECD demands UK enacts adequate anti-bribery laws

The OECD (Organization for Economic Cooperation and Development) Working Group on Bribery sharply criticised the United Kingdom's failure to bring its anti-bribery laws into line with its international obligations under the OECD Anti-Bribery Convention and urged the rapid introduction of new legislation.

Current UK legislation makes it very difficult for prosecutors to bring an effective case against a company for alleged bribery offences. Although the UK ratified the OECD Anti-Bribery Convention 10 years ago, it has so far failed to successfully prosecute any bribery case against a company. The OECD Working Group, which brings together all 37 countries that are parties to the OECD Anti-Bribery Convention, is "disappointed and seriously concerned" about the UK's continued failure to address deficiencies in its laws on bribery of foreign public officials and on corporate liability for foreign bribery, which it said has hindered investigations. The Group acknowledged positive aspects in the UK's fight against foreign bribery, including the allocation of significant financial resources and nation-wide jurisdiction to a specialised unit of the City of London Police for foreign bribery investigations. It also noted the UK's first conviction of an individual in September 2008 for foreign bribery in international business transactions and its recent anti-corruption strategy to improve and strengthen the UK's law and structures to tackle foreign bribery. But it emphasised that reforms are urgently needed and should be dealt with as a matter of political priority. Recent cases have also highlighted systemic deficiencies that make clear the need to safeguard the independence of the Serious Fraud Office and eliminate unnecessary obstacles to prosecution. In a report following a supplementary review of the UK's implementation of its obligations under the Convention, the Working Group reiterated its previous 2003, 2005 and 2007 recommendations that the UK enact new foreign bribery legislation at the earliest possible date. It expressed its strong regrets concerning uncertainty about the UK's commitment to establish an effective corporate liability regime in accordance with the Convention, as recommended in 2005. Among its main recommendations are that the UK should: 1) Enact modern foreign bribery legislation and establish effective corporate liability for bribery as a matter of high priority: 2) Take all necessary measures to ensure that Article 5 of the Convention, which notably prohibits consideration of the national economic interest when prosecuting foreign bribery, applies effectively to all investigative and prosecutorial decisions at all stages of a foreign bribery case. 3) Ensure that the Attorney General cannot give instructions to the Director of the Serious Fraud Office about individual foreign bribery cases, and eliminate the need for Attorney General's consent to prosecutions of such cases. 4) Ensure that the SFO attributes a high priority to foreign bribery cases and has sufficient resources to address such cases effectively In light of the numerous issues of serious concern, the Working Group has requested the UK to provide quarterly written reports on legislative progress for each Working Group meeting. It may also carry out follow-up visits to the UK, and may take further appropriate action after it considers the reports or any on-site visits. The Working Group warned that uncertainty over the UK's legislative framework may trigger a need for increased due diligence over UK companies by their commercial partners or multilateral development banks. In related news the OECD Committee on Fiscal Affairs which is committed to improving transparency and establishing effective exchange of information in tax matters said that 35 Jurisdictions (fiscal havens) have made commitments to transparency and effective exchange of information and are considered "co-operative jurisdictions". Although a small number of jurisdictions identified as tax havens in June 2000 have not yet made commitments, the OECD said it welcomes continued dialogue with these jurisdictions and the prospect of their future commitment to transparency and effective exchange of information. The three "uncooperative tax haves" are Andorra, Liechtenstein and Monaco. The 35 cooperative jurisdictions are: Anguila, Antigua & Barbados; Dutch Antilles; Aruba; Bahamas; Bahrain; Belize; Bermudas; Cyprus; Dominica; Gibraltar; Granada; Guernsey; Cayman islands; Cook islands; Marshall islands; Island of Man; Marshall islands; Mauritius; British Virgin islands; US Virgin islands; Jersey; Liberia; Malta; Montserrat; Nauru; Niue; Panama; Samoa; St. Kitts y Nevis; Santa Lucia; San Marino; San Vicente and Grenadines; Seychelles; Turks y Caicos and Vanuatu.