In today’s interconnected and highly scrutinized business landscape, integrity is more than a value, it's a regulatory necessity. Anti-bribery and anti-corruption (ABAC) laws are not just legal guardrails; they are critical components of risk management and corporate governance. Whether you’re a compliance officer guiding multinational operations or a business executive steering your team through ethical grey areas, understanding the global ABAC landscape is fundamental to safeguarding your organization.
This guide explores the key laws shaping anti-bribery and anti-corruption efforts globally, including the Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act. We’ll also examine enforcement trends, compliance management strategies, and the growing impact of new legislation like the Foreign Extortion Prevention Act, equipping risk and compliance professionals with the insights they need to stay ahead.
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Defining bribery and corruption: beyond the envelope of cash
At its core, bribery involves offering, giving, soliciting, or receiving something of value to influence a person’s actions in a position of power. But in practice, it can take many forms:
- Direct payments to decision-makers
- Kickbacks disguised as commissions
- Lavish hospitality or gifts provided with the expectation of reciprocal action
- Charitable donations funneled through proxies
- Facilitation payments, which are small unofficial payments to expedite routine tasks
The line between a legitimate business gesture and a bribe can be narrow. While a token gift or a lunch meeting might be acceptable in one jurisdiction, it could raise red flags in another, especially if intent and transparency are unclear.
Moreover, anti-bribery laws tend to cast a wide net. The term “foreign official” under the U.S. Foreign Corrupt Practices Act (FCPA), for instance, includes any employee of a foreign government or state-owned enterprise, a definition broad enough to implicate many seemingly routine transactions in overseas markets.
Core legislation: the pillars of global anti-corruption enforcement
Enacted in 1977 and enforced by the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), the Foreign Corrupt Practices Act (FCPA) prohibits U.S. individuals and companies from bribing foreign officials to gain or retain business[1]. The FCPA applies not only to direct actors but also to third-party intermediaries, subsidiaries, and joint venture partners.
Significantly, the FCPA has extraterritorial reach, meaning non-U.S. entities that trade on U.S. exchanges or conduct business in the U.S. can also fall under its scope[2].
Often considered even more stringent than the FCPA, the UK Bribery Act 2010[3] criminalizes:
- Bribing another person
- Being bribed
- Bribing a foreign public official
- Failing to prevent bribery
Notably, the UK act applies to both public and private sector bribery, and holds companies liable for failing to implement adequate procedures to prevent corruption.
Australia takes a federated approach to anti-bribery and corruption enforcement, with both Commonwealth and state-level legislation playing a role in deterring and prosecuting misconduct. The cornerstone of national legislation is the Criminal Code Act 1995, which criminalizes both domestic and foreign bribery[4].
Key features include:
- Foreign bribery offence (Division 70): Criminalizes bribery of a foreign public official by Australian individuals or companies, regardless of where the conduct occurred. This provision aligns with Australia’s obligations under the OECD Anti-Bribery Convention[5].
- False accounting offence (Division 490): Targets efforts to conceal bribes, such as through falsified records or improper documentation.
- State-based corruption laws: States such as New South Wales and Victoria maintain additional public sector integrity bodies with powers to investigate misconduct by public officials.
Recent legislative activity has focused on strengthening foreign bribery enforcement, including proposals to introduce a “failure to prevent” offence, similar to the UK Bribery Act, allow the use of deferred prosecution agreements (DPAs) to encourage corporate cooperation, broaden the definition of a “foreign public official” and remove the requirement to prove that a benefit was “not legitimately due”.
Some other key frameworks include:
- OECD Anti-Bribery Convention: Establishes legally binding standards for criminalizing bribery of foreign public officials in international business[6].
- UN Convention Against Corruption (UNCAC): A broad international treaty promoting prevention, criminalization, and asset recovery[7].
- Country-specific laws: Such as Brazil’s Clean Company Act, France’s Sapin II, and China’s Anti-Unfair Competition Law, all reflect a rising global commitment to anti-corruption enforcement.
Enforcement trends: escalating penalties and personal accountability
Enforcement of anti-bribery laws is no longer confined to headline-making scandals. Regulators are targeting routine transactions, third-party relationships, and supply chains, especially where internal controls are weak.
The DOJ and SEC have emphasized individual accountability in recent years. C-suite executives, compliance officers, and frontline managers are increasingly finding themselves under scrutiny. In several high-profile cases, companies faced fines exceeding hundreds of millions of dollars, yet individual employees were also charged, fined, and barred from future leadership roles[8].
Joint investigations between enforcement bodies in different countries are now common. Cooperation between the DOJ and the UK’s Serious Fraud Office (SFO), for instance, has led to simultaneous prosecutions and record-breaking settlements involving multinational corporations[9].
Building a culture of compliance: strategies that work
There is no one-size-fits-all approach to ABAC compliance. However, regulators around the world expect organizations to implement risk-based compliance frameworks that reflect their size, industry, and geographical footprint. The DOJ’s Evaluation of Corporate Compliance Programs offers detailed guidance on what constitutes an effective program[10].
Core components include:
- Risk assessments: Identify high-risk jurisdictions, functions, and partners
- Policies and procedures: Codify rules on gifts, hospitality, and third-party due diligence
- Training programs: Equip staff and executives to recognize and respond to red flags
- Monitoring and auditing: Use data and analytics to track adherence and identify anomalies
- Reporting channels and whistleblower protections: Create safe pathways for concerns to be raised and addressed
In many industries, third-party risk is the weakest link. Vendors, agents, and consultants operating in opaque environments can expose organizations to liability even when internal controls are sound.
Global compliance: navigating variability across jurisdictions
Multinational corporations must align operations with multiple, and sometimes conflicting, legal regimes. What’s permitted under the FCPA might violate the UK Bribery Act. Some countries may tolerate facilitation payments; others prohibit them entirely.
To manage this complexity, organizations often adopt “gold standard” policies that meet the most stringent requirements globally, rather than tailoring compliance to the lowest common denominator.
Some high-profile exposed industries include:
- Healthcare: Companies face heightened scrutiny around the provision of free samples, research funding, or travel expenses for physicians, particularly when those physicians are deemed public officials under local law.
- Banking and asset management: Banks and investment firms risk exposure through cross-border transactions, politically exposed persons (PEPs), and correspondent banking arrangements.
- Technology and fintechs: Firms operating in fast-growing but high-risk markets often struggle with third-party onboarding and oversight.
Real-world enforcement actions provide stark lessons. For example, Siemens AG paid over $1.6 billion in combined fines in the U.S. and Germany for widespread bribery violations[11].
What’s changing: new laws and future enforcement trends
The Foreign Extortion Prevention Act (FEPA) criminalizes the demand side of bribery, making it illegal for foreign officials to solicit or accept bribes from U.S. companies[12]. This represents a significant shift, recognizing the shared responsibility of both giver and receiver in corrupt exchanges.
FEPA also signals an intention to collaborate more closely with international enforcement bodies, putting pressure on foreign jurisdictions to prosecute their own officials.
Looking forward, experts anticipate:
- Increased whistleblower protections and incentives
- Greater use of data analytics for monitoring compliance
- Heightened scrutiny of ESG-linked investments, where transparency and ethical governance are paramount
- Tighter controls on cryptocurrency transactions, which can be used to obscure bribes
As the enforcement landscape expands, so does the expectation for companies to go beyond formal compliance and demonstrate a culture of integrity and accountability.
Conclusions and next steps for your organization
Anti-bribery and anti-corruption laws are more than regulatory hurdles: they are essential pillars of sustainable, reputable, and competitive organizations. Navigating their complexity takes more than legal knowledge. It requires committed leadership, embedded cultural values, and proactive risk and compliance systems that evolve alongside the global regulatory environment.
For compliance professionals, legal teams, and executives, the imperative is clear: build systems that prevent misconduct before it happens, detect issues early, and respond transparently. Ethical conduct must be more than a statement, it must be operationalized.
That’s where technology plays a transformative role.
Protecht ERM empowers you to embed compliance into your day-to-day operations, linking obligations, controls, incidents, and attestations in a single, centralized platform.
Request a demo today to see how Protecht’s compliance management solution can help you maintain regulatory confidence and stay ahead of scrutiny:
References
[1] U.S. Department of Justice – Foreign Corrupt Practices Act (FCPA) Overview: https://www.justice.gov/criminal-fraud/foreign-corrupt-practices-act
[2] U.S. Securities and Exchange Commission (SEC) – FCPA Resource Page: https://www.sec.gov/spotlight/fcpa.shtml
[3] UK Government – Bribery Act 2010 (Legislation.gov.uk): https://www.legislation.gov.uk/ukpga/2010/23/contents
[4] Australian Government – Attorney-General’s Department – Foreign Bribery: Offences and Reforms: https://www.ag.gov.au/crime/publications/foreign-bribery-offences-and-reforms
[5] Organization for Economic Co-operation and Development (OECD) – Phase 4 Report on Implementing the OECD Anti-Bribery Convention in Australia (2021): https://www.oecd.org/corruption/australia-phase-4-follow-up-report-2021.pdf
[6] Organization for Economic Co-operation and Development (OECD) – OECD Anti-Bribery Convention: https://www.oecd.org/daf/anti-bribery/
[7] United Nations Office on Drugs and Crime (UNODC) – United Nations Convention Against Corruption (UNCAC): https://www.unodc.org/unodc/en/corruption/uncac.html
[8] U.S. Department of Justice – DOJ and SEC Announce Enforcement Update on FCPA: https://www.justice.gov/opa/pr/doj-and-sec-announce-enforcement-update-fcpa
[9] UK Serious Fraud Office (SFO) – Corporate Cooperation Guidance: https://www.sfo.gov.uk/publications/corporate-cooperation-guidance/
[10] U.S. Department of Justice – Evaluation of Corporate Compliance Programs (2020): https://www.justice.gov/criminal-fraud/page/file/937501/download
[11] U.S. Department of Justice – Siemens AG and Subsidiaries Plead Guilty in FCPA Case: https://www.justice.gov/opa/pr/siemens-ag-and-three-subsidiaries-plead-guilty-anticorruption-violations-and-agree-pay-800
[12] U.S. Congress – Foreign Extortion Prevention Act (S.1142) – Full Bill Text: https://www.congress.gov/bill/117th-congress/senate-bill/1142/text