Higher-risk situations and red flags

Some situations carry inherently higher bribery risk, and in those situations your alertness needs to rise to match.

Higher-risk markets and sectors

Corruption risk varies enormously between countries and sectors. Markets where public sector corruption is widespread, sectors that depend heavily on government licences, permits, and contracts, and deals involving state-owned enterprises all deserve extra care. In these environments, routine interactions with officials, from customs clearance to permit applications, are where improper demands tend to surface.

Public officials

Any dealing with a public official, at home or abroad, is higher risk by definition. Remember that section 6 does not require proof that the official acted improperly, only that an advantage was given to influence them and was not legitimately due. The bar for what you can offer a public official is far lower than for a private counterparty, and in many cases the safe answer is nothing at all without prior approval.

Red flags

A red flag is not proof of bribery. It is a signal to stop, ask questions, and escalate before proceeding. Watch for:

• Commissions or fees that are unusually large for the service, or that increase suddenly around a contract award
• Vague invoices for "consultancy", "marketing support", or "services rendered" with no detail of what was actually done
• Requests for payment in cash, or to a personal account rather than the contracted company
• Requests to route payment to a third country or to an entity that is not party to the contract
• A third party recommended or insisted upon by the customer or a public official
• A partner who refuses ordinary due diligence questions, or whose ownership is deliberately opaque
• Pressure to skip approvals because a deal is urgent

If you see a red flag, do not resolve it by yourself and do not ignore it because the deal matters. Pause the activity and raise it. An awkward conversation now is vastly cheaper than an SFO investigation later.