Final Word from Thursday, December 9, 2010

As of next April, Czech entities doing business in the United Kingdom will become subject to prosecution there for any corrupt conduct not only on British territory, but also in the far-away Czech Republic or anywhere else. The new U.K. Bribery Act has extreme extra-territorial scope and will apply to anyone carrying on a business or "part of a business" in Great Britain. Lawyer Guy Pendell of CMS Cameron McKenna told AmCham yesterday that he doesn't think the intent of the Act is to police corruption in all of Europe, but he stressed the need for Czech entities with ties to the U.K. to have "adequate procedures" in place should bribery by an employee become an issue. He said the law will require a major change in corporate culture. Theoretically at least, the Serious Fraud Office could return years later to an instance of bribery that the Czech management thought was long paid and buried.Czech Republic American Chamber of Commerce]

Glossary of difficult words

long arm - long reach; suggesting the granting or claiming of jurisdiction outside of one's usual jurisdiction;

extra-territorial - (of a law or decree) valid outside a country's territory;

scope - the extent of the area or subject matter that something deals with or to which it is relevant;

to police something - to enforce regulations or an agreement (in a particular area or domain);

long - at a time distant from a specified event or point of time;

buried - deliberately forgotten or concealed.


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