Bribery Prevention involves specific and targeted measures focused on eliminating the risks of active (giving) and passive (receiving) bribery. Unlike general anti-corruption policies, this service concentrates on financial controls and managing criminal liability risks. For international companies operating in Georgia, this issue is particularly significant as they are subject not only to Georgian legislation but also to extraterritorial acts like the US FCPA and the UK Bribery Act. Bribery can be disguised as "consulting services," "charitable contributions," or "entertainment expenses." A qualified lawyer helps the company build a strong shield protecting it from involvement in bribery and subsequent criminal prosecution.
What does this service cover?
The bribery prevention service includes practical mechanisms:
- Financial Transaction Monitoring: Identifying high-risk payments (e.g., cash, offshore accounts) and implementing control mechanisms.
- ABAC Clauses in Contracts: Inserting specific clauses in contracts obliging partners to comply with the law and granting the company audit rights.
- Gift and Hospitality Register: Implementing a system where employees register received or given gifts to rule out hidden bribery.
- Public Sector Interaction: Creating a clear protocol on how employees should interact with public officials (e.g., when obtaining permits).
- Internal Investigations: Conducting rapid and confidential inquiries if suspicious facts are detected.
Common Real-World Scenarios
Bribery risks are often hidden in the following situations:
- Customs Procedures: An agent offers "expedited service" for a fee without a receipt. This is classic bribery.
- Licensing: An intermediary demands a "consulting fee" to obtain a construction permit, which is actually intended for an official.
- Charitable Foundations: A public official "advises" the company to transfer money to a specific fund in exchange for a favorable decision.
- Employment: Fictitiously employing a relative of an influential person to gain favor.
Georgian Legal Framework
The Criminal Code of Georgia (Articles 338, 339) strictly punishes bribery. Particularly noteworthy is the criminal liability of legal entities — a company can be fined, have assets confiscated, or be liquidated if its management was involved in bribery. Internationally, Georgia complies with GRECO and OECD recommendations, meaning legislation is constantly tightening.
Process: How does a specialist work?
The lawyer analyzes the company's financial flows and high-risk operations. A list of "Red Flags" is created — for example, vague service contracts. Then, a multi-level authorization system (4-eyes principle) for payments is implemented. The lawyer also conducts training for employees so they know how to act if someone offers or demands a bribe.
Why Legal.ge?
Bribery prevention requires knowledge of criminal law and corporate finance. Specialists on Legal.ge will help you create a system that protects your business from criminal risks. We ensure your company remains "clean" before the law and investors.