Combating Bribery of Foreign
Officials

What are bribery and corruption?

Bribery is a serious offence concerning the practice of offering something(usually money) in order to gain an illicit advantage.

Corruption is an abuse of a position of trust in order to gain an undue advantage
and may encompass a number of offences such as fraud, abuse of one’s positionof power and money laundering.

This is a worldwide problem with businesses, governments, societies andindividuals being affected.

What are the consequences of bribery?
 It creates an unfavourable business environment, particularly in relation
to Trade and Foreign Direct Investment.
 As well as allowing organised crime to flourish, corruption is one of theprimary obstacles to the economic development of a country; itundermines the rule of law, weakens trust in public institutions andchallenges democratic principles.

2OECD Convention on Combating Bribery of Foreign Public Officials inInternational Business Transactions
The OECD Convention on Combating Bribery of Foreign Public Officials inInternational Business Transactions was signed in December 1997 and cameinto force in February 1999. Ireland ratified the Convention in September
2003. The Convention is aimed at reducing corruption by encouraging
sanctions against bribery in international business transactions carried out bycompanies based in the convention member countries.
OECD website http://www.oecd.org/corruption/oecdantibriberyconvention.htm

What is the Legal Position in Ireland?
The Prevention of Corruption (Amendment) Act, 2001 gave effect in Irish law
to the OECD Convention on Bribery of Foreign Public Officials inInternational Business Transactions and also two other Conventions,concerning corruption in criminal law and corruption involving officials of theEuropean Communities and officials of the EU member states.
There are strong penalties in place, of up to 10 years imprisonment and an
unlimited fine, for those found guilty of offences under the Act, including
convictions of bribery of foreign public officials by Irish nationals andcompanies. Under section 23 of the Proceeds of Crime Act 2005, the Criminal
Assets Bureau has power to seize a suspected bribe, and that Act also contains
provisions relating to forfeiture of the bribe.
The Prevention of Corruption (Amendment) Act 2010 strengthened the anticorruption laws, and which gives fuller effect to certain provisions of the OECD
Anti-bribery Convention. The Act broadens the legislation on corruption, in3

particular in relation to corruption occurring outside the State, and Irish
jurisdiction in this regard has been extended to cover virtually all persons,
including companies, having a connection with the State.
A key provision in the Act is the protection afforded to whistleblowers whomake reports, in good faith, of suspected corruption offences.

These reports

can be made on a confidential basis. Regarding suspected corruption offences
abroad, the Act provides that reports can be made to diplomatic or consularofficers as well as to foreign police forces.
Note also the Criminal Justice Act, 2011, whereby it is an offence to fail to give
the Gardaí (Police) information which could prevent the commission of certain
serious offences, including corruption and other financial crimes. This Act also
provides protection for whistleblowers, including protecting employees frompenalisation for disclosing relevant information.

What should companies do to minimise the risk of corruption?

Irish businesses, both at home and abroad, should implement anticorruption
policies and practices, including anti-corruption guidelines, training, internal
audit procedures and reporting requirements. The challenge for business is tomaintain, review and develop these measures to respond to changing
circumstances. Specific measures that a business could implement include:

Establishing an anti-corruption policy;
 Ensuring all employees are familiar with the relevant bribery andcorruption laws, their responsibilities and the appropriate response to
any suspicion of corrupt activity;4 Ensuring that agents and partners, who are representing or purporting
to represent their business, have adequate and valid credentials for theactivities being undertaken;
 Establishing monitoring and reporting requirements for agents andpartners representing their business;
 Establishing a clear and accessible internal system for the reporting of
any suspicious behaviour in relation to the OECD Anti-BriberyConvention.

What should I do if I am suspicious of corrupt practices?
A person who has either a suspicion or documentary proof that corrupt practices
are taking place in international business transactions should in the first instancereport the matter to the Garda Bureau of Fraud Investigation, Harcourt Square
Dublin 2 (Contact No: 01 6663776). On receipt of such a complaint, the Bureau
will conduct an assessment to determine whether a crime has taken place andwill then either proceed with the investigation itself or assign responsibility to
the relevant Garda Region.

Further information can also be obtained on the Department of Justice, Equality
and Law Reform dedicated website: www.anticorruption.ie.

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