Long Arm of the Antibribery Law

    View Authors July 2013

    British and US Antibribery Laws Affect Czech Companies Both at Home and Abroad.

    It could be argued that the Czech Republic is still awaiting its first considerable bribery case. As a result, the battle against corruption in the Czech Republic is still viewed as a more political topic, as opposed to legal, with many managers still refusing to admit that corruption among workers may lead to a company prosecution.

    However, since 1 January 2012, a legal entity may be prosecuted for criminal offences (including corruption crimes) directly if such crimes are committed in its name, interest and/or as part of its activity. In addition, corruptive practices may lead to criminal law consequences under foreign regulations.

    Companies with connections to the UK and US need to pay particular attention to these regulations. The UK Bribery Act 2010 has extended the “long arm” concept and sanctions for the criminal offence of “failure to meet the company’s obligation to prevent bribery” now apply regardless of the country in which the criminal offence is committed. Furthermore, they apply to any and all companies incorporated under UK law or those which partially carry out their business activities in the United Kingdom. Therefore, a company with connections to UK may be prosecuted for this crime in the UK even where the crime was committed in the Czech Republic.