British firms using bribery to win deals face seizure of assets

British companies found guilty of using bribery to win contracts abroad could have assets seized by the state under legislation to fight organised crime.

The UK's Home Office says the proceeds of crime bill, which will give the state new powers to confiscate property acquired by criminal means, will apply to corporate profits and assets obtained through bribery.

This would be in addition to any fines or penalties arising from the conviction for bribery or corruption itself under recent anti-corruption legislation.

Together, the two pieces of legislation would give the UK one of the toughest sets of penalties globally for corruption committed abroad.

All OECD countries are committed to introducing anti-corruption legislation for bribery overseas, which until recently was not illegal in most European countries.

The bill, which will create an Assets Recovery Agency with new powers to seize property in England and Wales, has encountered tough opposition in its passage through parliament.

The bill was introduced to help the fight against organised crime, particularly drug gangs and human trafficking rings.

However, in a letter to Mr Hugh Bayley MP, an anti-corruption campaigner, Mr Bob Ainsworth, under-secretary of state at the Home Office, says: "The bill states that a person benefits from criminal conduct if he obtains any property as a result of or in connection with the conduct.

"This would cover benefit that flowed from a contract obtained by means of bribery or corruption.

"Where a UK national or company is convicted of a crime of bribery or corruption under the Anti-terrorism, Crime and Security Act and that crime took place abroad, the courts will be able to confiscate any benefit derived from it."

Judges could also use the bill to freeze the assets of a company facing trial in the UK for bribery committed abroad.

The Serious Fraud Office believes this would help in the case of middle-men and deal brokers, though it would probably not need to be used against respected companies.

Mr Bayley, who sits on the international development committee of MPs, said the threat of confiscation would act as a powerful deterrent.

While the new anti-corruption law allows for unlimited fines, campaigners fear fines will be based on the severity of the corruption rather than the size of the deal.

"The US passed legislation of this kind 25 years ago when \ Carter was president," said Mr Bayley.

"Since then they have had a couple of convictions a year. It has had a significant effect on US business practices."