ExpertHard2 marksMultiple Choice
ACCA · Question 24 · Corporate fraudulent and criminal behaviour
Under the Bribery Act 2010, a commercial organization can be guilty of the strict liability offence of 'failure to prevent bribery'.
Which TWO of the following statements regarding this offence are correct?
Under the Bribery Act 2010, a commercial organization can be guilty of the strict liability offence of 'failure to prevent bribery'.
Which TWO of the following statements regarding this offence are correct?
Answer options:
A.
The organization can be liable if an associated person bribes another person intending to obtain or retain business for the organization.
B.
The prosecution must prove that the board of directors explicitly authorized the bribe.
C.
The organization has a defense if it can prove it had 'adequate procedures' in place to prevent bribery.
D.
The offence only applies if the bribery took place within the United Kingdom.
How to approach this question
Recall the elements of the s.7 corporate offence in the Bribery Act 2010. It is strict liability (no board approval needed) but has the 'adequate procedures' defense.
Full Answer
Section 7 of the Bribery Act 2010 creates a strict liability offence for commercial organizations that fail to prevent bribery by an 'associated person' (employee, agent, subsidiary) acting on their behalf. The only defense is for the organization to prove, on the balance of probabilities, that it had 'adequate procedures' in place designed to prevent such conduct.
Common mistakes
Believing that senior management must be aware of the bribe for the company to be liable. Section 7 was specifically designed to bypass the need to prove 'directing mind and will'.
Practice the full ACCA LW — Corporate and Business Law Practice Exam 2
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