Bribery is a specific offence which concerns the practice of offering something, usually money, to gain an illicit advantage and corruption is an abuse of a position of trust in order to gain an undue advantage. Overall, bribery and corruption reduces efficiency and increases inequality. Estimates show that the cost of corruption equals more than 5% of global GDP or about US$ 2.6 trillion, with over US$1 trillion paid in bribes each year.  Engaging in corrupt practices creates a very unfavourable business environment by encouraging unfair advantage and anti-competitive practices.  As well as allowing organised crime to flourish, corruption is one of the primary obstacles to the economic development of a country; it undermines the rule of law, weakens trust in public institutions and challenges democratic principles. 

 

The Bribery Act 2010 represents arguably the toughest legal regime against bribery anywhere in the world. Unlike the US Foreign Corrupt Practices Act of 1977 (as amended) the UK requirements cover both domestic and foreign bribery acts. In order to evidence compliance with the Bribery Act, financial institutions must implement anti-bribery and corruption (ABC) programs.  These programs should include a code of conduct and policies regarding gifts, training, political and charitable contributions, and delegation of authority, as well as accounting policies regarding the proper recording of transactions. Financial institution must pay specific attention to the risks derived from the global nature of their operations, the degree of business performed on behalf of government entities, the physical location of their banking outlets and the international regulatory environment in which it operates.

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