A bottle of malt, a box of chocolates or if you’re really lucky a case of Champagne - it’s the time of year when many in our industry will be giving or receiving gifts as we show our appreciation to customers for another year’s business.

But this Christmas, as you thank your supplier for the port and Stilton, ask yourself: “Should I declare this gift, or could I be accused of taking a bribe?”

In October, the Serious Fraud Office (SFO) reviewed its policies on facilitation payments and hospitality, saying it will prosecute any offence covered by the Bribery Act 2010. Christmas gifts could provide them with a rich source of potential prosecutions.

While in most cases, accepting a small gift will not fall foul of the Act, many businesses are failing to take the issue seriously. The extent of the problem was revealed in a poll undertaken by The Grocer in July when a staggering 47% of respondents said they’d known salespeople to offer retail and wholesale buyers bribes.

Organisations are exposing themselves to serious criminal risk if they ignore this issue. The Act created an offence of ‘corporate corruption’. Directors are obliged to take reasonable steps to prevent bribery by the staff or an ‘associated person’. An individual convicted under the Act can be liable for a prison sentence of up to 10 years as well as a fine.

To avoid trouble, you need to have procedures in place that are: “proportionate to the bribery risks it faces”. This means clear bribery prevention measures such as risk assessments and written policies. Critically, the legislation outlines six principles you must follow, including effective monitoring and regular reviews to prevent bribery.

But more importantly there needs to be board-level commitment to these policies and they need to be effectively implemented. Having a policy is not a defence the SFO will accept. You have to show you’ve done everything you can to prevent fraud.

So enjoy the hopefully genuine gifts you receive over Christmas, but make an early new year’s resolution that this is the last Christmas your organisation is left exposed.

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