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UK companies will have to operate under a significantly tougher anti-corruption regime from 1 July as a result of new rules published last month by the Export Credits Guarantee Department, which underwrites much of UK business abroad.
The updated rules require exporters to provide the department with the names of any middlemen used in foreign deals. They also give the department power to carry out audits of exporters’ contract records at any time, not only in cases where corruption is suspected.
Exporters will have to declare they have conducted anti-corruption checks on parent and sister companies, and also on joint venture partners.
The measures represent a substantial U-turn by the UK government. It had weakened many of the rules during drafting as a result of business lobbying, but has reinstated most of them following a legal challenge by the Corner House. The pressure group said the final requirements are ‘a genuine and important step in the right direction that will help go some way to restoring the ECGD’s and ultimately the UK government’s reputation on fighting corruption’.
The Confederation of British Industry said the new rules are ‘tougher than what many of our competitors are required to do’ but are now ‘more workable’ than under previous drafts.
The new regime will also apply to UK investors seeking support for projects overseas.
The updated rules require exporters to provide the department with the names of any middlemen used in foreign deals. They also give the department power to carry out audits of exporters’ contract records at any time, not only in cases where corruption is suspected.
Exporters will have to declare they have conducted anti-corruption checks on parent and sister companies, and also on joint venture partners.
The measures represent a substantial U-turn by the UK government. It had weakened many of the rules during drafting as a result of business lobbying, but has reinstated most of them following a legal challenge by the Corner House. The pressure group said the final requirements are ‘a genuine and important step in the right direction that will help go some way to restoring the ECGD’s and ultimately the UK government’s reputation on fighting corruption’.
The Confederation of British Industry said the new rules are ‘tougher than what many of our competitors are required to do’ but are now ‘more workable’ than under previous drafts.
The new regime will also apply to UK investors seeking support for projects overseas.
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