Australian companies, particularly those involved with developing nations are being urged to pay close attention to changes to Australia's bribery and anti-corruption laws.

In late 2012 the Australian Government increased the penalties for breaches of anti-bribery laws to A$11 million or three times the value of any benefits obtained for corporations. It also increased the personal ramifications to A$1.1 million for individuals and up to 10 years jail.

Middletons partner Jim Bulling says he is seeing more interest in the regulation but many Australian corporates are still unaware of the full implications of breaches, as bribery and corruption laws were unreported for a long time. “It is not ranked highly by business,” said Bulling. “It has been for a long time something that has not entered business consciousness until relatively recently. But it needs to get ratcheted up the pecking order.”

While some clients have taken steps to ensure their organsiations are acting in accordance with Australian laws, Bulling says those who have not taken those steps could be easily caught out. “When it goes wrong it goes wrong in a profound way,” he said. “We are seeing a lot more attention on this area of the law, we are seeing companies come to us and ask us for assistance in preparing compliance regimes.”

In addition to the penalties increasing, Bulling also says the enforcement of the laws is also picking up as a result of recent events including the Australian Wheat Board (AWB) scandal. “There is no regulator whose job it is to ensure companies are complying,” said Bulling. “The regulatory burden falls within the Attorney Generals department and the Australian Federal Police (AFP), and the AFP are not into prevention as a general rule.”

Bulling says clients are working to put in place new chapters of compliance associated with bribery and corruption, particularly where the company is involved in overseas operations. “Directors and senior officers are right to be concerned about this,” he said. “Not all companies will be affected, but Australian companies doing business overseas particularly in developing nations will need to take these into consideration.”