Law firms need to put risk mitigation procedures in place to avoid potential prosecutions under the new Bribery Act arising from corrupt clients, experts have warned.
Eoin O’Shea, a partner at City firm LG, said: ‘As with money laundering, firms and practitioners need to be careful they aren’t involved in transactions on behalf of their clients that involve bribes.’
He said these might include corporate or trust structures created for the purpose of disguising or facilitating bribes.O’Shea said there was also the risk of direct liability for law firms, for example if they relied on a local consultant to assist in setting up a foreign office, and the consultant paid a bribe to licensing authorities.
‘The firm could be prosecuted unless it has in place "adequate procedures" to prevent [corruption],’ he said.
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