Anti-bribery and corruption (ABC) is the set of laws and controls that stop firms and people from paying or taking bribes, or abusing power for private gain. It is a core part of financial crime compliance, backed by laws such as the US FCPA and the UK Bribery Act.
Key takeaways
- Anti-bribery and corruption (ABC) stops improper payments and abuse of power.
- Bribery is offering value to influence a decision; corruption is the wider abuse of trusted power.
- Key laws include the US FCPA (1977) and the UK Bribery Act (2010).
- The World Economic Forum has estimated the global cost of corruption at about $2.6 trillion.
- Third parties, agents, and gifts are common ways bribery enters a business.
- ABC sits inside a firm’s wider financial crime compliance function.
On this page
What it isBribery vs corruptionWhy it is financial crimeKey lawsABC controlsThird-party riskRed flagsManaging the riskFAQsRead more
$2.6T
Estimated global cost of corruption, about 5 percent of GDP
Source: World Economic Forum
>$1T
Estimated bribes paid worldwide each year
Source: World Bank
1977
Year the US Foreign Corrupt Practices Act was enacted
Source: US FCPA
What is anti-bribery and corruption?
Anti-bribery and corruption is everything a firm does to stop bribery and the abuse of entrusted power. It combines laws, policies, and checks that keep improper payments out of the business.
The goal is both legal and practical. Bribery and corruption distort markets, raise costs, and expose a firm to heavy penalties, so ABC protects the firm as well as the public.
It is one strand of financial crime work, alongside anti-money laundering and sanctions. Read more: ABC sits within a firm’s wider financial crime compliance function.
Bribery vs corruption: the difference
Bribery and corruption are linked but not the same. The difference is one of scope.
Bribery is offering, giving, or taking something of value to improperly influence a decision. Corruption is broader: the abuse of entrusted power for private gain, which includes bribery but also embezzlement, fraud, and favoritism.
| Bribery | Corruption | |
|---|---|---|
| What it is | An improper payment or inducement | Abuse of entrusted power for gain |
| Scope | A specific act | A broad category of conduct |
| Includes | Cash, gifts, favors | Bribery, embezzlement, favoritism |
In short, every bribe is corruption, but not all corruption is bribery.
Why ABC is part of financial crime
Bribery and corruption are financial crimes because they move money illegally and often feed other crimes. The proceeds frequently need laundering, which ties ABC to anti-money laundering work.
A corrupt official who takes a bribe has to hide and use that money, which is where money laundering begins. Corruption is also a common predicate offense, the underlying crime that produces dirty funds.
The scale is large. The World Economic Forum has estimated the global cost of corruption at about $2.6 trillion, roughly 5 percent of global GDP, and the World Bank has estimated that more than $1 trillion is paid in bribes each year.
Check a country’s corruption risk
Look up a country against corruption and financial crime data to see its risk profile before you take on exposure.
Key anti-bribery laws
A handful of laws set the global standard for ABC. Two carry the most weight for international firms.
- US Foreign Corrupt Practices Act (1977). Bans bribery of foreign officials and requires accurate books and records.
- UK Bribery Act (2010). Broader than the FCPA, it covers bribery of anyone, bans facilitation payments, and creates a corporate offense of failing to prevent bribery.
- OECD Anti-Bribery Convention (1997). Commits member countries to criminalize bribery of foreign officials.
- Local laws. Most countries have their own anti-bribery and anti-corruption statutes.
These laws reach across borders. A firm can be prosecuted in one country for conduct that happened in another, which is why global firms apply the strictest standard everywhere.
What ABC controls look like
A working ABC program has a familiar set of controls, tuned toward payments, third parties, and gifts. The core parts are consistent.
- Risk assessment. Identify where bribery risk is highest, by country, sector, and third party.
- Policies. Clear rules on gifts, hospitality, donations, and facilitation payments.
- Third-party due diligence. Check agents, distributors, and partners before engaging them.
- Training. Help staff recognize and refuse improper payments.
- Whistleblowing. A safe channel to report concerns.
- Monitoring and audit. Review payments and books for signs of bribery.
Use the tool: screen a partner for adverse media and sanctions links with Combined AML Screening before you engage them.
Third-party and facilitation payment risk
Most bribery does not happen directly. It flows through third parties, which is where the greatest ABC risk sits.
Agents, distributors, consultants, and local partners can pay bribes on a firm’s behalf, and the firm can still be liable. Careful due diligence on who these parties are, and how they operate, is the main defense.
Facilitation payments, small sums to speed up routine services, are a related trap. Even where they are technically legal, they are hard to control and easy to abuse, so many firms ban them entirely.
Red flags of bribery and corruption
A few patterns point to bribery risk. None is proof, but each warrants a closer look.
- A third party that demands unusually high fees or commissions.
- Payments to a country different from where the work is done.
- A partner recommended by the government official awarding the contract.
- Vague invoices for consulting or success fees with no clear deliverable.
- Reluctance to agree to anti-bribery terms in a contract.
- Gifts or hospitality that are lavish or badly timed around a decision.
Screen a third party before you engage
Run one search across sanctions, PEP, and adverse media data to check an agent, distributor, or partner.
How firms manage ABC risk
Firms manage bribery risk in proportion to where it is greatest, in the same spirit as the risk-based approach to laundering. A few steps carry most of the weight.
- Rate the risk. Focus on high-risk countries, sectors, and third parties.
- Vet third parties. Check partners before engaging and re-check over time.
- Set clear limits. Define what gifts, hospitality, and payments are allowed.
- Train and remind. Keep staff aware of the rules and how to refuse a bribe.
- Encourage reporting. Make it safe and simple to raise a concern.
Do this: weigh the country side of your exposure with our Country Risk Checker.
Get an indicative financial crime risk rating
See where your financial crime risk is concentrated across customers, products, markets, and third parties.
Frequently asked questions
What is anti-bribery and corruption (ABC)?
Anti-bribery and corruption is the set of laws and controls that stop firms and people from paying or taking bribes, or abusing entrusted power for private gain. It combines policies, third-party checks, training, and monitoring. ABC is a core part of financial crime compliance and is enforced by laws such as the US FCPA and the UK Bribery Act.
What is the difference between bribery and corruption?
Bribery is offering, giving, or taking something of value to improperly influence a decision. Corruption is broader: the abuse of entrusted power for private gain, which includes bribery but also embezzlement, fraud, and favoritism. Every bribe is a form of corruption, but not all corruption involves bribery.
What laws cover anti-bribery and corruption?
The main laws are the US Foreign Corrupt Practices Act of 1977, which bans bribery of foreign officials, and the UK Bribery Act of 2010, which is broader and also bans facilitation payments. The OECD Anti-Bribery Convention and local anti-corruption laws also apply. These laws often reach across borders.
What is the FCPA?
The FCPA, or Foreign Corrupt Practices Act, is a US law enacted in 1977. It prohibits bribery of foreign government officials to win or keep business, and it requires companies to keep accurate books and records. The FCPA applies to US firms and, in many cases, to foreign firms with a US connection.
What is the UK Bribery Act?
The UK Bribery Act 2010 is a broad anti-bribery law. It covers bribery of any person, not just government officials, bans facilitation payments, and creates a corporate offense of failing to prevent bribery. A firm can defend against that offense by showing it had adequate anti-bribery procedures in place.
What are facilitation payments?
Facilitation payments are small sums paid to speed up routine government actions, such as processing a permit. They are technically allowed under the US FCPA but banned under the UK Bribery Act. Because they are hard to control and easy to abuse, many global firms ban them entirely and apply the stricter standard everywhere.
Why is bribery a financial crime?
Bribery is a financial crime because it moves money illegally and often feeds other crimes. A corrupt official who takes a bribe has to hide and use that money, which is where money laundering begins. Corruption is also a common predicate offense, the underlying crime that produces dirty funds needing to be laundered.
What are the red flags of bribery?
Red flags include a third party demanding unusually high fees, payments to a country different from where the work is done, a partner recommended by the official awarding a contract, vague invoices with no clear deliverable, reluctance to accept anti-bribery contract terms, and lavish or badly timed gifts and hospitality.
What controls prevent bribery and corruption?
The main controls are a bribery risk assessment, clear policies on gifts, hospitality, and facilitation payments, due diligence on third parties such as agents and distributors, staff training, a safe whistleblowing channel, and monitoring of payments and books. These are applied in proportion to where bribery risk is highest.
What is third-party bribery risk?
Third-party risk is the danger that agents, distributors, consultants, or local partners pay bribes on a firm’s behalf. The firm can still be held liable, even if it did not make the payment directly. Because most bribery flows through third parties, checking who they are and how they operate is a central ABC control.
How much does corruption cost the world?
The World Economic Forum has estimated the global cost of corruption at about $2.6 trillion, roughly 5 percent of global GDP. The World Bank has estimated that more than $1 trillion is paid in bribes each year. These figures are estimates, since corruption is hidden by design, but they show the scale of the problem.
How does ABC relate to anti-money laundering?
ABC and anti-money laundering are closely linked. The proceeds of bribery and corruption usually need to be hidden and used, which is money laundering. Corruption is a common predicate offense that produces dirty money. Firms increasingly manage both under one financial crime compliance function, since they share tools such as screening and monitoring.
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Last reviewed July 12, 2026 · 11 min read · Written for compliance and risk professionals · By the WhoWiki editorial team
Key takeaway: anti-bribery and corruption controls stop firms paying or taking bribes, and they are enforced by tough laws like the US FCPA and the UK Bribery Act.