NACC Outlines Anti-Bribery Guidelines, Engages Private Sector to Implement Internal Control Measures

NACC Outlines Anti-Bribery Guidelines, Engages Private Sector to Implement Internal Control Measures

The National Anti-Corruption Commission (NACC) has encouraged the business sector to adopt anti-bribery guidelines by implementing eight key measures to prevent the bribery of public officials. The aim is to make these guidelines actionable and reduce legal risks. The NACC emphasized that when the private sector stops paying bribes, it cuts off a vital resource for corrupt officials.

Niwatchai Kasemmongkol, NACC Secretary-General, and Spokesman, stated that businesses often feel compelled to push for smooth and fast operations, leading many organizations to pay bribes to gain business advantages willingly. According to statistics on bribery cases from the Organization for Economic Co-operation and Development (OECD), an organization of over 38 member countries, most bribes are paid to secure government contracts in procurement. Other instances involve customs clearance, licenses, permits, and concessions. These bribery issues result in unfair competition and harm the country’s reputation.

To address this, the NACC supports the private sector and legal entities in establishing internal control measures to ensure transparent business operations, preventing bribery of public officials. The NACC has introduced eight guidelines for fostering transparent, bribe-free business practices, aimed at combating bribery:

1. Anti-bribery policies must originate from the highest levels of management, such as the company board, CEO, or business owners, to create a strong internal culture—commonly called to as “Tone from the Top.” Top management must clearly express their commitment to anti-bribery efforts, set policies, and support the organization's anti-bribery measures.

2. Legal entities must assess the risk of bribery involving public officials, as each entity's level of interaction with public officials may vary. Risk assessments help design appropriate internal controls to prevent bribery tailored to each business.

3. High-risk areas prone to bribery, such as gift-giving, entertainment, and donations, must have clear, detailed procedures. Legal entities should establish transparent approval processes and stringent control measures, as well as provide training for personnel to ensure compliance.

4. Legal entities must apply anti-bribery measures to their business partners to mitigate the risk of being held accountable for the bribes paid by associated businesses, such as contractors. This includes conducting due diligence or incorporating anti-bribery clauses into contracts, ensuring no off-the-books transactions are used to conceal bribes.

5. Legal entities must maintain sound accounting systems.

6. Human resource management must align with anti-bribery measures.

7. Legal entities should encourage the reporting of suspected misconduct or suspicious activities.

8. Anti-bribery measures must be regularly reviewed and evaluated.

Under Section 176 of the NACC Act, legal entities are not automatically liable in all cases of bribery. If an entity has implemented appropriate internal controls to prevent bribery, it will not be held liable under this section. The law also prescribes penalties for "bribe givers," with imprisonment of up to five years, fines of up to 100,000 baht, or both. Companies involved in bribery face fines ranging from one to two times the damages or benefits gained. However, if a business has made every effort to prevent bribery, the law provides exemptions from penalties in certain cases.