New ACCA report delves into the impact on SMEs
Delve into the true extent of how bribery and corruption impacts SMEs across the world and discover the pressing need for enhanced transparency and robust regulatory frameworks.
Our research shows a high prevalence and deep concerns about the damaging impact of bribery and corruption on SMEs, with 59% of SMEs and their advisers believing that standing up to bribery and corruption will cost them business trade or opportunities.
But the survey also reveals a strong understanding of the benefits of standing up to bribery and corruption. 77% agree that having a strong anti-bribery policy boosts customer confidence in their business, and 68% say it increases their chances of getting lucrative contracts with big businesses and public sector bodies.
As anti-bribery rules grow and develop, the reach of those provisions is also growing. Value chain assurance programmes are putting additional obligations on large business to confirm not only their own anti-bribery processes but also that their suppliers have such policies in place. But this can raise problems. Valuable as the enhanced reporting regimes are, they will need to accommodate the differing scope of measures that are reasonable for businesses of different sizes.
A majority of our survey respondents who work in small businesses argued there should be a lighter legal and regulatory burden on SMEs than on larger businesses. But even where the practical steps taken are different, the underlying principles and culture should be the same across different sizes of business.
As always, practitioners should be wary of any suspicious transactions when dealing with their clients and consider their obligations under the AML regulations as well as the Professional Conduct in Relation to Taxation (PCRT).