By Jane He, Partner, PwC Australia and Penny Dunn, Partner, PwC Australia
On 8 September 2024, a new foreign bribery offence came into effect under the Crimes Legislation Amendment (Combating Foreign Bribery) Act 2024. This provides a timely reminder for business leaders to review and enhance key measures to mitigate for bribery and corruption risks.
Under the legislation, a ‘failure to prevent’ offence has been established. Corporations can face criminal liability, and significant penalties, for failing to prevent foreign bribery by their associates. Associates are broadly defined to include officers, employees, agents, contractors, and anyone performing services on behalf of the corporation. A corporation can avoid liability for the ‘failure to prevent’ offence if it can demonstrate adequate procedures in place to prevent foreign bribery by its associates.
The complexity and challenge of managing bribery and corruption risks continues to be highlighted in PwC’s Global Economic Crime and Fraud Survey (GECS) 2024. The survey found that 73% of Australian respondents perceive the risk of corrupt or improper payments as either increased or unchanged over the past 12 months. This ongoing challenge continues to create a difficult operating environment for businesses.
The GECS survey reveals further challenges related to third parties, which represent a significant bribery risk. While the GECS data shows that 77% of Australian respondents feel confident in their ability to manage corruption risks, 30% either do not have a third-party risk management program or do not evaluate their third parties as part of their anti-bribery and corruption efforts. While implementing basic frameworks, such as a whistleblower policy or an anti-bribery and corruption code of conduct, is a crucial first step, organisations should also consider third party risk measures that strengthen anti-bribery and anti-corruption (ABAC) management.
Here are five key actions to support an effective anti-bribery and corruption compliance program:
Addressing bribery and corruption risk requires involvement from all levels of an organisation. By taking these actions, organisations can effectively manage bribery and corruption risks as part of ethical, sustainable business operations.
Jane He
Partner, Assurance, Forensics, Crisis and Resilience, Sydney, PwC Australia
+61 451 690 569
Penny Dunn
Partner, Assurance, Forensics and Financial Crime, Melbourne, PwC Australia
+61 407 367 561
Alan Wong
Director, Assurance, Forensics and Financial Crime, Melbourne, PwC Australia
+61 2 8266 3173
This article has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this article without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this article, and, to the extent permitted by law, PricewaterhouseCoopers, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this article or for any decision based on it.
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