Iris H.-Y. Chiu, Michael McKee, Anna P. Donovan, Rod Edmunds, Andreas Kokkinis, John Lowry, Marc T. Moore and Arad Reisberg
Chapter 8: SYSTEMS AND CONTROLS IN ANTI-BRIBERY AND CORRUPTION
A critical challenge facing banks (and those responsible for their governance) is the implementation of effective anti-bribery and corruption (ABC) systems and controls. Regulatory developments and, in particular, the Bribery Act 2010 (the Bribery Act or the Act) have renewed interest in (and scrutiny of ) a firm’s internal governance as a key component of its ABC initiatives. An organisation’s internal systems and controls are, of course, a central tenet of its’ ABC response (particularly in light of the Act’s requirement that a firm implement adequate procedures to prevent bribery being committed on its behalf ). However, these internal procedures are just one aspect of a board’s ABC responsibility; regulation and industry guidance make it clear that boards are also required to develop and instil a culture of compliance within the bank. Drawing on the Bribery Act as the key driver of recent governance attention, this chapter considers the impact of the Act on a board’s responsibility to implement both adequate internal procedures and a broader ethical culture within the bank’s governance framework. Banks and other financial institutions occupy an interesting position regarding the Act and the governance response that it demands. They are, of course, already subject to complex risk-management, compliance and wider financial crime obligations and sanctions.
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