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Key takeaways for Australian companies
The message is clear: Proactivity is essential. Companies operating across borders must ensure their ABC compliance programs are not only fit for purpose but also regularly reviewed and enforced.
Recommended steps include:
- Identifying high-risk jurisdictions and business lines;
- Conducting enhanced due diligence on third-party agents;
- Implementing strong recordkeeping for all third-party payments;
- Creating or strengthening whistleblower frameworks; and
- Periodically engaging external experts to review ABC frameworks.
These measures are not just about compliance—they are also critical to protecting corporate value and reputation.
In September 2024, Australia introduced sweeping reforms to its anti-bribery and corruption (ABC) regime with the Crimes Legislation Amendment (Combatting Foreign Bribery) Act 2024 (Foreign Bribery Act), which came into effect on 8 September 2024.
This article explores the potential legal, reputational, and operational consequences for companies and provides practical guidance on how to respond and protect against future risk.
"Failure to prevent" offence
These reforms most notably created a new corporate offence of "failure to prevent" the bribery of a foreign public official, marking a fundamental shift in corporate liability for bribery in Australia.
Now a company can be criminally liable if an "associate" (including employees, agents, contractors, subsidiaries or any person performing services for the company) bribes a foreign public official for the company's benefit. This strict liability offence places the onus on companies to demonstrate they had "adequate procedures" in place to prevent bribery as the only defence. This also means a company can be convicted regardless of whether it knew about or authorised the bribe.
"Adequate Procedures" and compliance expectations
Companies can avoid liability for failing to prevent bribery by proving they had "adequate procedures" to prevent corrupt conduct. Guidance on what amounts to adequate procedures is crucial.
In late August 2024, just days before the new offence came into force, the Attorney-General's Department released official Guidance on Adequate Procedures to help businesses design effective anti-bribery compliance programs.
Similar to the UK Ministry of Justice guidance (under the UK Bribery Act), the Australian guidance is built around six core principles:
Fostering a control environment to prevent foreign bribery
and those compliance measures should be appropriate and tailored to a company's particular circumstances including their business, jurisdictions, complexity of operations.
Responsibilities of top-level management
A clear and demonstrable "tone from the top" that promotes compliance culture.
Risk assessment (which includes details on due diligence)
Regular identification and review of foreign bribery risks, especially in high-risk markets or sectors.
Communication and training
Comprehensive training and clear communication of policies to all associates.
Reporting foreign bribery
including having an effective reporting mechanism for whistleblowers and self-reporting
Monitoring and review
Ongoing evaluation and improvement of ABC controls; not a "set and forget" exercise.
The guidance makes clear that a mere checklist approach or a "set and forget" policy is insufficient, the controls must be proportionate, risk-based, and actively implemented. Notably, the Australian guidance has some differences from the UK Guidance (e.g. on what constitutes "adequate procedures"), so companies that already comply with UK standards need to ensure they address any gaps under the Australian requirements.
There was no grace period granted for companies to get programs in place and any act of foreign bribery by an associate after 8 September 2024 could expose a company to immediate liability if its precautions are lacking. Accordingly, in the past year many Australian businesses (especially those operating in high-risk markets or in industries like mining, construction, and defence) have been conducting fresh risk assessments, updating their ABC policies, and rolling out enhanced training and oversight measures to be able to avail themselves of the "adequate procedures" defence.
Key amendments to the Foreign Bribery Act
Other key amendments in the Foreign Bribery Act broaden the scope of Australia's foreign bribery offence to align with international standards:
1. Personal advantage
Bribery to obtain any personal advantage (not just to retain business or business advantages) is now prohibited.
2. Foreign Candidates
Anti-bribery provisions now extend to foreign candidates for public office, not only current officials (see section 70.2 of the Foreign Bribery Act and the definition of Foreign Public Official at section 70.1).
3. Improperly influencing
The former requirement that a benefit be "not legitimately due" has been replaced with the concept of "improperly influencing" a foreign public official (see section 70.2 of the Foreign Bribery Act). This change simplifies proof by focusing on the corrupt intent rather than debating whether a benefit was officially due.
4. Influence
It is no longer necessary to prove that the foreign official was actually influenced in the exercise of their official duties. In other words, offering or providing an improper benefit itself is enough and prosecutors need not show the official acted differently as a result.
5. Intention
Prosecutors also no longer need to prove that the accused had a specific business or personal advantage in mind at the time of the bribe, nor that the advantage was actually obtained. It suffices that a bribe was intended to obtain some type of advantage, even if for a third party.
These reforms address long-standing criticisms that Australia's laws were too narrow and difficult to enforce. By expanding offences and imposing corporate liability for inadequate preventive measures, the 2024 amendments aim to "finally bite" and bring Australia in line with global anti-bribery norms.
The stakes: Penalties and reputational fallout
If convicted of failing to prevent bribery, corporations face severe penalties with the maximum fine the greater of $33 million (100,000 penalty units), three times the value of the benefit obtained, or 10% of the company's annual turnover. Individuals involved in foreign bribery also face harsher punishments (up to 10 years' imprisonment or heavy fines) under the amended law.
Beyond financial penalties, the reputational damage can be significant. Public association with bribery, whether through allegations, investigations, or enforcement outcomes, can fracture relationships with investors, business partners, suppliers, and staff. Internally, such scandals often damage morale and trust in leadership.
How bribery is uncovered
Many cases come to light through whistleblowers (employees, contractors, or even suppliers who report concerns internally or to regulators). Since 2019, Australia's whistleblower protections have been significantly strengthened.
In other cases, the first signs may come from overseas regulators or enforcement agencies. International cooperation under treaties such as the OECD Anti-Bribery Convention or the UN Convention Against Corruption means that foreign authorities can (and often do) notify Australian counterparts or request assistance in investigations.
Taskforce Solaris
In parallel with recent legal reforms, Australian authorities have ramped up enforcement efforts over the last 12 months, signalling that these new laws will be backed by action. Notably, in October 2025 the Australian Federal Police announced that Taskforce Solaris, a dedicated multi-disciplinary team focused on preventing, detecting and prosecuting foreign bribery and related grand corruption, will support the enforcement of the Foreign Bribery Act. This taskforce centralises expertise and resources and is empowered to pursue foreign bribery cases involving Australian individuals or companies anywhere in the world, as well as foreign companies or persons if any part of the conduct occurred in Australia.
The AFP's new approach is to work closely with international partners, recognising that cooperation (through INTERPOL, the International Anti-Corruption Coordination Centre, and networks like the OECD Working Group on Bribery) is vital to track cross-border bribery schemes.
What to do if bribery is suspected
Another interesting development is the emphasis on corporate self-reporting and cooperation in uncovering bribery. The AFP and Commonwealth Director of Public Prosecutions (CDPP) have published a joint Best Practice Guideline on Self-Reporting of Foreign Bribery by corporations, which outlines incentives for companies that voluntarily report misconduct.
Accordingly, the initial 48–72 hours after a suspicion arises are critical. Companies should move quickly to:
- Assess the credibility of the allegations;
- Scope an internal investigation; and
- Engage legal and forensic experts and carefully structure the investigation, including by considering whether to conduct the investigation for a legally privileged purpose.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
