International taskforce unveils bribery indicators

The Serious Fraud Office (SFO), collaborating with law enforcement authorities from the Five Eyes nations, has issued guidance aimed at aiding businesses, professionals, and the general public in identifying potential signs of foreign bribery. This initiative marks the first collective effort by the International Foreign Bribery Taskforce (IFBT), which has unveiled a comprehensive list titled “Indicators of Foreign Bribery”. The publication draws on insights from the SFO, the UK’s National Crime Agency, the Australian Federal Police, the Royal Canadian Mounted Police, New Zealand Police, the New Zealand Serious Fraud Office, and the US Federal Bureau of Investigations.

The guidance is informed by the collective casework experience of IFBT members and highlights various factors that might indicate foreign bribery activity. It is designed to assist professionals in high-risk sectors, compliance teams, and the wider business community in recognising concerning patterns and subsequently reporting them to the relevant authorities. The indicators provided are intended to serve as a preliminary warning system; while they alone do not necessarily indicate criminal activity, when considered together and in context, they can elevate the risk profile of the entities involved.

Among the risk factors outlined are owning a high-value property portfolio disproportionate to income, registering a charity with the same name as a business, requiring unusual secrecy regarding transactions or contracts while being reluctant to share relevant financial records, holding shares in a company through complex ownership structures, and awarding contracts to parties lacking the apparent capability to fulfil them.

It is important to note that several indicators are common in other financial crimes like money laundering, which means they should be judiciously evaluated against the broader context of a company's operations and overall risk profile. The IFBT strongly encourages anyone spotting potential foreign bribery activity to report their findings to the appropriate authority within their jurisdiction. In the UK, individuals can submit bribery-related reports to either the SFO or the National Crime Agency.

Balinder Matharu, Head of Intelligence Analysis at the Serious Fraud Office, conveyed that “Foreign bribery is a complex problem that demands a global response. This guidance brings together decades of intelligence and investigative experience from the world’s leading law enforcement agencies. Prevention is always better than prosecution, and this collaborative approach demonstrates our commitment to working with our law enforcement partners to tackle economic crime.”