ExpertMedium2 marksMultiple Choice
ACCA · Question 21 · Corporate fraudulent and criminal behaviour
Section A
Under the Bribery Act 2010, a commercial organisation can be guilty of the corporate offence of 'failing to prevent bribery'.
What is the only statutory defence available to a company charged with this offence?
Section A
Under the Bribery Act 2010, a commercial organisation can be guilty of the corporate offence of 'failing to prevent bribery'.
What is the only statutory defence available to a company charged with this offence?
Answer options:
A.
That the senior management were unaware of the bribery.
B.
That the bribe was paid in a foreign country where such payments are customary.
C.
That the company had adequate procedures in place designed to prevent bribery.
D.
That the bribe was of a very small value (a facilitation payment).
How to approach this question
Identify the strict liability corporate offence in the Bribery Act and the specific defence provided in Section 7.
Full Answer
C.That the company had adequate procedures in place designed to prevent bribery.✓ Correct
Under s.7 of the Bribery Act 2010, a commercial organisation is strictly liable if an associated person bribes another to obtain or retain business for the organisation. The only defence is to prove that the organisation had 'adequate procedures' in place designed to prevent such conduct.
Common mistakes
Believing that ignorance or small facilitation payments are valid defences.
Practice the full ACCA LW — Corporate and Business Law Practice Exam 6
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