Anti-terrorism crime and security bill

United Kingdom

Commission payments to overseas agents

This bill which is expected to become law within a matter of weeks will make it a criminal offence for a UK company to make a corrupt payment to a foreign public official or to an agent of an overseas principal. Therefore the practice of paying commission payments to intermediaries to procure contracts in various parts of the world will expose UK companies to possible prosecution in the English courts.

An overseas subsidiary of a UK company is not subject to the legislation. However, a UK company directing an overseas subsidiary to make a payment might well attract criminal liability for procuring an offence.