The Serious Fraud Office (SFO), working with law enforcement partners across the Five Eyes nations, has published guidance to help businesses, professionals and the public identify potential indicators of foreign bribery.
For the first time, the International Foreign Bribery Taskforce (IFBT) has collectively published ”Indicators of Foreign Bribery”, an agreed list of factors that indicate foreign bribery. This brings together information from the SFO, the UK’s National Crime Agency, Australian Federal Police, Royal Canadian Mounted Police, New Zealand Police, New Zealand Serious Fraud Office, and the US Federal Bureau of Investigations.
Drawing on the collective casework experience of IFBT members, the guidance highlights factors that may suggest foreign bribery activity and is designed to help professionals working in high-risk sectors, compliance teams, and the broader business community to recognise concerning patterns and report them to the appropriate authorities.
Taken in isolation the indicators do not automatically equate to criminal activity. Instead, they highlight factors which, when considered in combination and within context, raise the risk profile.
The indicators cover a range of risk factors commonly associated with foreign bribery cases, including for example
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Owns a high-value property portfolio disproportionate to income
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Registers charity with the same name as company
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Requires unusual secrecy in relation to transactions or contracts and is reluctant to share financial records regarding same
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Is a shareholder in a company through layers of complex company ownership
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Awards contracts to a party that lacks the apparent capability
The guidance notes that some indicators are common to other financial crimes, including money laundering, and should be assessed within the broader context of a company’s operations and risk profile.
The IFBT encourages anyone who identifies activity that may be indicative of foreign bribery to report it to the appropriate authority within their jurisdiction. In the UK, bribery reports can be made to the SFO or the National Crime Agency.
Balinder Matharu, Head of Intelligence Analysis at the Serious Fraud Office, said
Foreign bribery is a complex problem that demands a global response. This guidance brings together decades of intelligence and investigative experience from the world’s leading law enforcement agencies. Prevention is always better than prosecution, and this collaborative approach demonstrates our commitment to working with our law enforcement partners to tackle economic crime.
The full “Indicators of Foreign Bribery” document is available at Foreign bribery and grand corruption – AFP