Key elements of an anti-bribery_anti-corruption framework

on the Prohibition of Commercial Bribery,
PRC Criminal Law, and many other judicial
decisions and laws. Because each law’s scope
is to cover a certain aspect of corruption, a
specific compliance program needs to be
created especially for China that must cover
all the different laws that constitute the anticorruption
rules of China.
Differences in
definitions
Anti-corruption
rules in the United
States are more
clearly defined than
in China as far as
the prohibition of
actions is concerned.
For instance, it is
stated by the FCPA
that giving gifts of
value or payments to
foreign officials, so
that their positions
can be used to secure a commercial contract
or bypass custom regulations, is prohibited.
On the other hand, anti-corruption laws
in China are not defined specifically. The
definition given is quite broad, because the
exchange of gifts is very common in China,
and a distinction between a gift and a
bribe with no expectations is quite tough to
make out.
Comparison between FCPA and
UK Bribery Act
Active and passive bribery
The UK Bribery Act prohibits active as well
as passive bribery, but the FCPA prohibits
only active bribery.
Bribery on a private level
The UK Bribery Act covers bribery even on
a private level, unlike the FCPA, although
To bribe a foreign official
is considered an offense
by both the FCPA and
the UK Bribery Act.
However, the FCPA
defines a foreign official
in a broader manner
than the UK Bribery Act.
such conduct may be prohibited by other
legislation in the U.S.
Bribery of foreign officials
To bribe a foreign official is considered an
offense by both the FCPA and the UK Bribery
Act. However, the FCPA defines a foreign
official in a broader manner than the UK
Bribery Act.
Intent
Under the FCPA,
one has to prove
that a person who
is trying to bribe
someone else is
doing so with a
“corrupt” intent.
This is not the case
in the UK Bribery
Act, where there
is no requirement
to prove an
improper intent.
What are the three top tests that a
compliance officer or an internal auditor
should follow?
The main reason to conduct substantive
testing is to detect red flag or potential
corruption violations. An internal audit
should not be treated as an investigation, but
as a process like any other process. If any red
flag or serious potential violation is detected,
protocol must be immediately put into place
for consultation. The following are some tests
that a compliance officer must follow for an
anti-corruption audit:
1. Risk assessment: The Audit/Compliance
Review should be based on an
organization’s risk assessment/fraud risk
assessment to concentrate on areas that face
elevated level of risks for bribery/corruption.
A compliance officer must test how effective
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