By Chris Campbell-Holt/Doha
As anti-bribery laws and enforcement standards are toughened worldwide, organisations in Qatar and the Middle East region will increasingly need to adopt a transnational approach to anti-corruption compliance and risk mitigation.
James Abbott, partner at the international law firm Clifford Chance, commented recently at a seminar hosted by the QFC Civil and Commercial Court, that “the increasing emergence of anti-corruption legislation which reaches beyond borders means it is more important than ever for businesses in Qatar to be aware of this legislation, not only to comply with international best practice but also to maintain their competitive edge in today’s global market place”.
The Bribery Act, which came into force in Britain on July 1 this year, will increasingly play a central role in this global trend to strengthen anti-corruption measures, and corporations in Qatar and the Middle East will have to appreciate its wide extraterritorial reach to any company in the world that conducts part of its business in the UK. Companies will need to be aware of and prepare for the introduction of a new corporate offence of a company failing to prevent bribery by its associated persons, punishable by an unlimited fine, and that the only defence to such a charge will be to put in place “adequate” anti-bribery procedures.
While the UK Government Guidance to the Bribery Act establishes that the mere listing of securities in the UK would not demonstrate by itself that a company carries on part of its business in the UK, companies should be extremely cautious and ensure that their internal policies and procedures comply with the high anti-corruption standards required if any part of their business is carried out in the UK.
Companies operating in Qatar and the Middle East must also pay attention to the increasing trend to strengthen global anti-corruption measures in other parts of the world in which they operate.
In the US, for example, which has been by far the most active country in tackling anti-corruption, the Foreign Corrupt Practices Act is under review in Congress and the recently-enacted Dodd-Frank Act has created significant whistleblowing provisions contemplating significant financial reward for individuals who provide information to the authorities leading to a successful enforcement of anti-corruption laws.
Companies must also be alert to the fact that Qatar itself has created a new anti-corruption committee and has strict anti-bribery and corruption provisions in the criminal procedures law, penal code and money laundering legislation. The Qatar Public Prosecution Office will take steps to ensure that standards are enforced.
Peace of mind at least and usually a substantial saving in costs and management time in the face of any such investigation can be achieved by the adoption of improved standards and an equivalent and pervasive culture throughout companies with the procedures in place to maintain them.
Companies would be well advised to ensure that they have policies and procedures that are proportionate to the risks they face and to the nature, scale and complexity of their company.
This can be achieved if companies follow internal and external corruption risk assessments that are periodic, informed and documented, and undertake audits and due diligence on persons who perform services for or on behalf of their organisations.
Policies and procedures should be communicated and understood by all employees at a company with periodic review and control and unambiguous leadership from top level management that is reflected in the values, communication and strategy of the company.
In short, companies should do and be seen to do all that can be reasonably expected of them to prevent bribery and corruption happening in their everyday business practices.
The QFC Civil and Commercial Court recently hosted two anti-corruption events with key speakers from the international law firms, Clifford Chance and Clyde & Co, the Qatar Public Prosecution Office and the QFC Civil and Commercial Court.
Michael Earley, Senior Associate at Clyde & Co, commented: “We were pleased with the level of interest generated and were grateful to the QFC Court for its hospitality in allowing us to use their impressive facilities.”
Robert Musgrove, CEO at the QFC Civil and Commercial Court and Regulatory Tribunal, said: “We were proud to host these anti-corruption events as part of a series of legal and educational events at our new lecture facility this year and we are fully committed to a wider role of encouraging education within the legal community and raising legal standards in Qatar.”
l Chris Campbell-Holt is acting registrar, QFC Civil and Commercial Court and Regulatory Tribunal. He was formally a member of the Secretariat to the Woolf Committee that publicly reviewed the ethical policies and procedures of the global armaments manufacturer, BAE Systems.