What is an Anti-Bribery and Corruption (ABC) Officer?

The Anti-Bribery and Corruption (ABC) Officer is a senior officer in the compliance department with a mandate to develop and implement policies on bribery, corruption, and other misconduct to protect the organization.

ABC Officer ensures that the organization’s operations conform to applicable anti-bribery and corruption laws such as the Prevention of Corruption Act (POCA), the Foreign Corrupt Practices Act (FCPA), and the U.K. Bribery Act.

The ABC officer has responsibility for the compliance role and liaises with legal and senior management, and finance, frequently working with Anti-Money Laundering (AML) functions to address financial crime risk.

Bribery is offering, giving, or receiving money or gifts with the intent of obtaining an unjust advantage.

Example: Bribing a government official with cash to expedite a business license approval.

Corruption is a broader term that describes the misuse of power for one’s own advantage. Corruption encompasses such matters as kickbacks, nepotism, embezzlement, bribery, and other unethical or criminal behavior by authorities.

Example: A government awarding contracts to relatives in exchange for favorable treatment.

“Every bribery is corruption, but not every corruption is bribery.”

What are the ABC Officer’s Job Responsibilities?

An ABC Officer plays a significant role in safeguarding an organization against anti-bribery and corruption. Their key tasks are:

• Developing and establishing anti-bribery and corruption policies
• Financial crime risk monitoring in liaison with AML teams
• Third-party risk assessment and due diligence
• Investigation into suspected breach involving bribery or unethical behavior
• ABC policies and ethics, employee training
• Monitoring of gifts, hospitality, and donations for policy compliance
• Reporting compliance status and risk to the top management
• Keeping abreast of legal and regulatory updates

In addition to the ABC Officer, organizations often appoint an ABC Manager to oversee compliance activities, an ABC Investigator to handle suspected violations, and an Anti-bribery and Corruption Compliance Officer who ensures alignment with broader anti-corruption frameworks.

How do the roles of an ABC Officer vs an Anti-Corruption Compliance Manager differ?

They both concentrate on safeguarding the organization against corruption and bribery, but differ marginally in focus and scope.

ABC Officer

They are responsible for implementing anti-corruption and anti-bribery policies. They identify high-risk departments or third-party relationships and implement anti-corruption and anti-bribery policies. They train staff to allow them to identify unethical practices, and monitor suspicious transactions to report them timely.

Anti-Corruption Compliance Manager:

ACC Manager oversees the organization’s anti-corruption program. They develops and institutes the compliance systems, and evaluate bribery hazards and corruption hazards in different departments and with other business partners. They also ensure internal policy, procedures, and controls are aligned with legal requirements and industry best practices.

How Organizations Develop an Anti-Bribery and Corruption (ABC) Policy?

The ABC officer will have to prepare, update, and implement the ABC policy of the company.  The policy establishes the rules with respect to the acceptance and giving of gifts, hospitality, and charitable donations, reporting abuse, disciplinary action, and third-party due diligence procedures.

It is based on an international best practice zero-tolerance bribery and corruption policy. It is also applicable in high-risk areas such as financial services, health sectors, and the public sector.

Global Regulations Relevant to ABC Officers

Understanding the international legal framework is key for Anti-Bribery and Corruption (ABC) Officers. The following are the global rules that guide ABC Officers:

1. Foreign Corrupt Practices Act (FCPA) – United States

The FCPA prohibits companies and individuals from giving anything of value to foreign officials to secure a business advantage. Firms are required to keep proper records and implement robust internal controls that can be used to help detect and prevent bribery.

2. U.K. Bribery Act – United Kingdom

This act criminalizes giving and taking bribes, and also the inability to prevent them from happening. It is not only applicable to companies based in the U.K. but also to global companies operating there. That qualifies it as a model law for anti-corruption measures globally.

3. OECD Anti-Bribery Convention – International

More than 40 nations are signatories to this convention. It mandates that paying bribes to foreign officials must be considered a criminal act. It makes companies accountable where the bribery takes place, with the stipulation that ethical practices in international business are paramount.

4. Canadian Corruption of Foreign Public Officials Act (CFPOA)

Canada’s main anti-bribery law is very similar to the FCPA. It bans the giving of bribes to foreign government officials and targets abuse in cross-border dealings by Canadian companies.

5. Sapin II Law – France

France’s Sapin II Law mandates large companies to have extensive anti-corruption procedures in place. These include obligatory internal controls, personnel training, risk assessments, and secure whistleblower channels to prevent and discover corruption early.

6. Clean Company Act – Brazil

This law enables both Brazilian and foreign companies to be liable for corrupt conduct, especially in public procurement. Collaboration with investigators, i.e., voluntary disclosure, may result in less severe penalties.

Additional Laws Supporting Anti-Bribery Compliance

• Sarbanes-Oxley Act (SOX) – United States

SOX is not just an anti-corruption law, but it also plays an important role in contributing to corporate responsibility. This act mandates companies to provide their actual financial statements and follow strong internal governance principles, which can help them avoid fraud and enhance transparency.

• International AML Regulations

AML regulations‘ goal is to detect and hinder the flow of illicit money, usually linked to bribery. ABC and AML groups work together to look into the suspicious transactions and implement internal controls.

• False Claims Act (FCA) – United States

The FCA aims to prevent fraud against public funds and strongly encourages whistleblowers to report it. The reports usually uncover other underlying threats of corruption, particularly in industries that deal with government contracts.

Enforcement Bodies Overseeing ABC Laws

• U.S. Department of Justice (DOJ)

DOJ initiates investigations and criminal enforcement of significant anti-corruption legislation, particularly the FCPA.

• U.S. Securities and Exchange Commission (SEC)

SEC enforces the civil provisions of the FCPA, with an emphasis on accounting transparency and compliance by publicly traded companies.