The Criminal Justice (Corruption Offences) Act 2018 entered into force on 30 July. It was signed into law by the Irish president, Michael D Higgins, on 5 June.

The new Act criminalises both 'active' and 'passive' corruption, broadly corresponding to the offering and accepting of a bribe. It also criminalises active and passive 'trading in influence', which is to do with promising an undue advantage to someone who claims to be able to exert improper influence over the decisions of a public official.

These offences apply regardless of whether the alleged ability to exert improper influence existed, or whether the supposed influence led to the intended result.

The Act also creates a number of new offences targeted at Irish public officials. It will criminalise any act of an Irish public official carried out in the course of their official position with the intent of corruptly obtaining an advantage for a third party, regardless of whether or not a third party was involved. It will also criminalise the use of confidential information obtained by a public official through their office for a corrupt purpose.

A company will be guilty of an offence under the 2018 Act if the offence is committed by an officer, employee, agent or subsidiary of the company, and the offence was committed with the intention of obtaining or retaining business or any business advantage for the company.

The individual who committed the offence will also be personally criminally liable under the Act, and officers of the company may also be personally criminally liable. The majority of offences under the 2018 Act carry a maximum penalty of ten years in prison and an unlimited fine.

This means that the same wrongful act may be prosecuted on three different fronts: the individual who undertook the wrongful act; the officer of the company who consented to the act or who was wilfully negligent; and the company itself.

A company will have a defence against corruption proceedings brought against it if it is able to prove that it took all reasonable steps and exercised all due diligence to avoid the commission of the offence. The practicalities of establishing this defence will be  similar to those necessary to establish the 'adequate procedures' defence available to UK companies under the 2010 Bribery Act in the UK.

The new Act could have extra-territorial effect on both companies and individuals under certain circumstances. For that to happen the corrupt act which takes place outside of Ireland must be an offence in Ireland, the corrupt act must also be an offence under the law of the country where the corrupt act takes place, and either the person who carried out the act is an Irish official or citizen, or they had their principal residence in Ireland for the period of 12 months immediately preceding the corrupt act or the company in question is a company formed under Irish company law or is any other body corporate established under the laws of Ireland.