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This year marks the second "International Anti-Corruption Day" since the COVID-19 pandemic debacle. People all throughout the world are still combating the illness and coping with its socioeconomic consequences. Many people are still concerned about how the world will look once the crisis subsides. The 9th of December is recognized as International Anti-Corruption Day. The day emphasises everyone's rights and duties in the fight against corruption. It has an impact on every aspect of society.  

In India, businesses have begun to take a more proactive and intentional strategy for battling with corruption and inducement, both within and outside their walls. Be it bribery, inducement or  corruption, they have all become major challenges for businesses, particularly those doing business internationally.  In India, the "Prevention of Corruption Act" is the primary legislation that establishes punishments for public workers who commit acts of corruption, as well as those who aid and abet such Acts.  

Domestic legal changes have also compelled the necessary transition. The Prevention of Corruption Act, 1988  was recently amended, and now requires business companies to implement compliance measures to prevent their workers from engaging in any act that might be classified as corruption or bribery under the Act. As a result, businesses have begun to implement their own internal procedures and policies in order to comply with anti-corruption legislation. These policies are often written to address compliance with applicable laws in India as well as in other countries.

Well, is corruption all about bribes & frauds ? What about accepting gifts or showing hospitality?

To Gift or Not to Gift ? 

The Prevention of Corruption Act clearly bans the supply or acceptance of an unfair benefit, including gifts, free transportation, boarding, and hospitality, directly or via a third party. However, under the Central Civil Services (Conduct) Rules, 1964, a notional monetary threshold for gifts that a public official may receive is established. While a public worker may receive gifts, meals, or hospitality up to the permitted limits, the prevalent impression is that there should be no intent to break the Anti-Corruption Act's restrictions.

Furthermore, the Supreme Court of India held in AB Bhaskara Rao v. Inspector of Police, CBI, Visakhapatnam [AIR 2011 SC 3845] that the amount paid as gratification is inconsequential, and that the public official's mens rea and conduct, as well as the prosecution's evidence of the acknowledgement of such illegal gratification, will determine whether or not the public official is guilty. To minimise any possible responsibility, most businesses have carefully defined their rules and monetary levels in respect to the giving and receiving of gifts and hospitality, particularly during Indian holidays.

Oftentimes bribes are paid through third-party intermediaries, such as sales representatives, logistical agencies, and so on. It is critical to conduct risk-based compliance due diligence reviews on third parties that the company intends to work with. Formal contracts should oblige them to perform ethically and in accordance with all business laws and disciplinary rules. To ensure that payments to the third party are appropriate in relation to the service provided, approval and monitoring mechanisms must be created. Third parties should also be informed about how to use whistleblower services so that they may report any conduct that triggers suspicions of misconduct. Senior management must announce unequivocally that the organisation has a "zero tolerance policy" for bribery and corruption. They must promote an ethical culture and demonstrate their commitment to fighting bribery and corruption.

Lawyered on International Anti - Corruption Day 一

Be a champion of anti-corruption, lead by example, and speak out against corruption for a brighter future. Integrity is essential for long-term success. In accordance with the organization's mission to prevent and eliminate corruption. The 9th of December is observed to raise awareness about corruption and the role of the Convention in combating and preventing it. One can show his or her dedication to the battle against corruption, which is a worldwide scourge that affects all aspects of society. 

“ There is no compromise when it comes to corruption. You have to fight it.”

– A.K. Antony