Complying with Australia's foreign bribery law amendments - what you need to know
Complying with Australia's foreign bribery law amendments - what you need to know
This article was originally published March 2024 and updated May 2025.
Australia’s efforts to combat foreign bribery reached a significant milestone with the passing of the Crimes Legislation Amendment (Combatting Foreign Bribery) Bill 2023. This was the most significant overhaul of the country’s foreign bribery laws in nearly three decades, signalling Australia’s strong commitment to tackling corruption on the global stage.
Passed by the Australian Senate on 29 February 2024, the Combatting Foreign Bribery Bill (CFB) introduced expanded offences and stricter penalties for corporations involved in bribery activities abroad. Given Royal Assent on 8 March 2024, these amendments came into force on 9 September 2024.
Critical aspects of the legislation
The enactment of the CFB Bill brings about several new amendments, including;
Introduction of a new corporate offence: Companies can now be held accountable for failing to prevent foreign bribery acts carried out by their associates. However, companies can rely on a statutory defence against relevant offences committed, provided they can demonstrate they implemented ‘adequate procedures’ (see below for details) to prevent instances of foreign bribery by associates.
Simplified burden of proof: Prosecutors will no longer need to establish direct influence on a public official as a result of a bribe or other advantage. It will be sufficient evidence that the individual offering the benefit intended to influence the public official.
Expanded scope of offences: The definition of foreign bribery now includes candidates for public office, not just current officeholders.
What are ‘adequate procedures’?
The Attorney-General’s Department published its updated guidelines on what constitutes ‘adequate procedures’ on 28 August 2024. The guidance sets out six principles to support corporations in establishing adequate procedures:
- Fostering a control environment to prevent foreign bribery
- Responsibilities of top-level management
- Undertaking detailed risk assessments
- Communication and training
- Reporting mechanisms for foreign bribery risk
- Continuous monitoring and review of anti-bribery policies and procedures.
Notably, the guidelines state that the existence of anti-bribery controls is not sufficient to make use of the ‘adequate procedures’ defence, instead requiring corporations to prove that the procedures were adequate.
Read the Guidance on adequate procedure to prevent the commission of foreign bribery here.
The penalties
If a body corporate is found to be liable for an offence of foreign bribery, it will face a significant penalty, being the greater of:
- 100,000 penalty units (equivalent to $31.3 million as of 1 July 2023);
- Penalties of three times the value of the benefit directly received or indirectly obtained through bribery; or
- 10 per cent of the corporation’s annual turnover if the court cannot determine the value of the benefit acquired.
In addition to the financial penalties outlined above, an organisation also risks reputational and brand damage through any offences committed or alleged.
How can BDO support you?
Over one year on, all entities should be compliant with the CFB Bill requirements to avoid costly penalties and reputational risk. BDO’s forensic services experts can help ensure your approach meets both your obligations and expected standards to protect your company’s integrity.
If you would like to learn more about how our experienced team can support you, please contact us or review our forensic services offering.
Disclaimer
This article has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The article cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact the BDO member firms in Australia to discuss these matters in the context of your particular circumstances. BDO Australia Ltd and each BDO member firm in Australia, their partners and/or directors, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.