Q&As

Is it necessary to conduct anti-bribery and corruption due diligence on suppliers?

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Published on LexisPSL on 07/09/2017

The following Practice Compliance Q&A provides comprehensive and up to date legal information covering:

  • Is it necessary to conduct anti-bribery and corruption due diligence on suppliers?
  • Agent, intermediary or supplier?
  • Anti-bribery and corruption due diligence
  • Implications—do I need to conduct due diligence on a supplier?

Is it necessary to conduct anti-bribery and corruption due diligence on suppliers?

Agent, intermediary or supplier?

Your organisation can be held liable for acts of bribery by associated persons.

The scope of this definition is broad and can embrace a wide range of business relationships, including agents and intermediaries. Agents and intermediaries are third parties engaged to provide services for or on behalf of the organisation or to represent your interests.

This may include:

  1. business consultants

  2. sales agents

  3. third parties retained in relation to government business or actions

  4. introducers

  5. facilitators

  6. lawyers and other professional advisors, and

  7. other third parties who provide services for or on behalf of an organisation in any capacity

Whether a specific third party relationship is an agent or intermediary relationship is a matter of fact in each case. The determining factor is the degree to which the third party may act autonomously on behalf of your organisation in interactions with other third parties.

When it comes to suppliers, the MOJ guidance states:

‘Where a supplier can properly be said to be performing services for a commercial organisation rather than simply acting as the seller of goods, it may also be an ‘associated’ person.’

It follows that where a supplier is simply selling goods to your organisation, they are unlikely to be an ‘associated person’ as defined by the Bribery Act 2010.

Anti-bribery and

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