New guidance on Foreign Bribery Indicators
The International Foreign Bribery Taskforce (IFBT) has published a new guidance document ”Indicators of Foreign Bribery” to help organisations better prevent, detect and address potential incidents of foreign bribery.
The IFBT comprises the Serious Fraud Office (SFO), NZ Police, Australian Federal Police, the Federal Bureau of Investigation, United Kingdom (UK) National Crime Agency, UK Serious Fraud Office and the Royal Canadian Mounted Police.
Download ”Indicators of Foreign Bribery [PDF, 155 KB]”
The guidance covers a range of risk indicators commonly associated with foreign bribery cases, including for example:
- Ownership of high-value property portfolio disproportionate to income
- Registration of a charity with the same name as company
- Unusual secrecy in relation to transactions or contracts and reluctance to share financial records regarding the same
- Shareholding in a company through layers of complex company ownership
- Awarding of contracts to suppliers that lack the apparent capability
The guidance notes that some indicators are common to other financial crimes, including money laundering, and should be assessed within the broader context of a company’s operations and risk profile.
This is a helpful resource for organisations which engage in international business, providing tips for where to focus due diligence efforts. Understanding who you do business with is a critical part of assessing your foreign bribery risks.
The SFO is focused on tackling foreign bribery because of the harm it causes to New Zealand’s reputation as a safe place to invest.
Our message is simple: if you see something, report it. If you’re unsure, get in touch anyway.