How do Australian construction companies typically ensure compliance with anti-bribery and corruption laws, and what are the consequences of non-compliance?

Key Laws and Regulations

• Criminal Code Act 1995 (Cth): Prohibits bribery of foreign public officials and applies to Australian companies and individuals who engage in corrupt conduct overseas.
• Corporations Act 2001 (Cth): Requires companies to maintain a culture of compliance and integrity, including having adequate policies and procedures in place to prevent bribery and corruption.
• Australian Securities and Investments Commission (ASIC) Act 2001 (Cth): ASIC is responsible for enforcing corporate governance and anti-corruption laws, including those related to bribery and corruption in the construction industry.
• Building and Construction Industry (Improving Productivity) Act 2016 (Cth): Establishes the Australian Building and Construction Commission (ABCC), which regulates the construction industry and investigates allegations of corruption and bribery.
• State and territory laws: Each state and territory in Australia has its own anti-corruption laws and agencies, such as the Independent Commission Against Corruption (ICAC) in New South Wales and the Corruption and Crime Commission (CCC) in Western Australia.

Compliance Strategies

• Implementing Anti-Bribery Policies: Developing and enforcing comprehensive anti-bribery policies that clearly outline the company's stance on bribery, the consequences of non-compliance, and procedures for reporting suspected bribery incidents.
• Conducting Risk Assessments: Conducting regular risk assessments to identify potential bribery risks associated with their operations, including risks related to dealing with foreign public officials, joint ventures, and third-party contractors.
• Providing Training and Education: Providing regular training and education to employees, contractors, and third-party agents on anti-bribery laws, company policies, and procedures to ensure they understand their obligations and the consequences of non-compliance.
• Establishing Due Diligence Procedures: Establishing due diligence procedures for vetting and selecting third-party contractors, agents, and joint venture partners to minimise the risk of bribery.
• Maintaining Accurate Records: Maintaining accurate and transparent records of all transactions, including payments, gifts, and hospitality, to demonstrate compliance with anti-bribery laws.