The Law Society has warned that the Bribery Act could present "significant risks" for law firms in relation to gifts and hospitality.

The practice note, issued last week (6 June) suggests that firms should introduce procedures to "prevent the giving or receiving of gifts, hospitality or paying of expenses" that might "influence or be perceived to influence a business decision".

Although corporate hospitality is not prohibited under the Act, the note suggests that firms should provide guidance on what gifts or hospitality it is acceptable to give or receive, warning of the "cumulative impact of several small gifts."

With regards to paying expenses, the note advises that firms should set out what is considered acceptable in terms of expenses, and that firms should be transparent on the nature of the expenses they pay.

The note also warns law firms about hospitality offered by other entities they are likely to refer work to, stating: "Firms should consider how they handle such offers or whether they need to ensure that acceptance of such offers is approved at a more senior level and whether any threshold should be applied."

Facilitation payments – where a third party pays a bribe either in the UK or overseas specifically to gain business – are defined as an offence under the Bribery Act, and the guidance stresses the requirement for firms to take appropriate measures to ensure that no bribes are made by third parties on their behalf.

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