Bribery & AML Flashcards
What is a bribe?
The giving, offering, promising or receiving of an advantage such as payment, gift, or a service for an action which is illegal or a breach of trust.
What is the key piece of legislation in relation to bribery?
Bribery Act 2010
What are the four prime offences under the Bribery Act?
bribing
receiving a bribe
bribing a foreign official
failure to prevent bribery
What is the government guidance on hospitality?
Lavish corporate entertainment can be classified as a bribe. It is not prohibited so long as it is reasonable, proportionate and accurately recorded in a gift register.
What is the penalty for bribery?
10 years in prison and/or and unlimited fine.
What is the key piece of legislation in relation to AML?
Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2012
What is money laundering?
Money laundering is when proceeds of criminal activities are disguised or converted and then realised as legitimate assets.
What are the key provisions of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations?
A written money money laundering and terrorist financing risk assessment
Implement systems, policies and controls
provide staff training
comply with new customer due diligence
comply with requirements relating to politically exposed persons
Ensure appropriate record keeping
AML check to be undertaken to identify the purchaser
A senior member of staff must be appoint to take responsibility for compliance.
A nominated Money Laundering Reporting Officer must be appointed to report to the National Crime Agency if required
10,000 euros cash limit
What are the AML checks at your firm?
The compliance director is responsible for monitoring and policies (Money Laundering Reporting Officer).
The due diligence checks for AML include:
- Client due diligence: identifying all parties involved in the transaction including the corporate structure.
- source of funds: if funds coming from a party other than the purchaser that party must have full checks undertaken
- counterparty: the entity on the opposite site of the transaction. Not our client but must be satisfied there is a minimum of risk.
What are the level of due diligence?
Customer due diligence
- verify the clients identity using a passport or drivers licence
- make reasonable endeavours to identify the beneficial owners of the client
- names of directors required
- obtain information on the purpose and intended nature of the business relationship and proposed funding arrangements
Enhance due diligence
- additional procedures or a business relationship involving a person established in a high risk country or a politically exposed person (PEP)
What are red flags around money laundering?
Inability or unwillingness to provide identity documents
changes of a parties involvement in transactions
unusual transaction features, such as unexpected urgency required by parties or loss making transactions
payment of fees, purchase or rental in an unusual manner.
What are red flags around money laundering and what should you do if you suspect it?
Inability or unwillingness to provide identity documents
changes of a parties involvement in transactions
unusual transaction features, such as unexpected urgency required by parties or loss making transactions
payment of fees, purchase or rental in an unusual manner.
Reporting: Where there is a suspicion of money laundering it is important that this is reported this to the Nominated Officer or Deputy Nominated Officer immediately without discussing the details with your clients or your colleagues.
Training: All staff are provided with training when they join the company.
What are the three main offences under the Proceeds of Crime Act 2002?
Concealing criminal property
Arrangements: entering into an arrangement which they know or suspect facilitates the use of criminal property
Acquisition and use: if a person acquires or had control of criminal property
What guidance on bribery and AML is offered by the RICS?
Countering bribery and corruption, money laundering and terrorist financing, 1st ed. Professional Statement
What is covered by Countering Bribery and Corruption, Money Laundering and Terrorist Financing, 1st ed.?
Mandatory requirements for anti-bribery, corruption and money laundering
Guidance setting out good practice
supplementary guidance
What must an RICS firm do to comply with the guidance on bribery?
Not accept anything that would constitute a bribe
have procedures in place to comply with the law
report suspicious activity to the authorities
retain records to evidence compliance
What must an RICS firm do to comply with the guidance on AML?
Not facilitate or be complicit in money laundering and terrorist financing
have systems and training in place to comply with these laws
report suspicions
evaluated the risk of business relationships
take appropriate measures to understand the client and the purpose of the transaction
verify the identity of the client
retain records to evidence compliance.
What should be included in a gifts register?
Gifts
Hospitality
entertainment and expenses
customer travel and hospitality
political contributions
charitable donations and sponsorships
What should RICS members do in relation to bribery and AML?
declare gifts to their employer
attend training
keep up to date with legislation
comply with their employers policies and processes
How do you take a risk based approach?
3 ‘w’s
Who you act for
What you are doing
Why you are being asked to do something
What is your firms gifts and entertainment policy?
Ask yourself “Would I be comfortable accepting or giving a gift or entertainment if this was brought to the attention of Avison Young UK Executive and the public?
We have a decision reporting and approval process. if an amount is below the reporting threshold is does not need to be reported, it is above the reporting threshold we must notify compliance for record keeping. If it is above the pre-authorisation threshold then a gifts and entertainment form must be completed and submitted to a line manager for approval, who then forwards this to compliance for record keeping.
What is your firms gifts and entertainment policy?
Consider: “Would I be comfortable accepting or giving a gift or entertainment if this was brought to the attention of Avison Young UK Executive and the public?
We have a decision reporting and approval process. If an amount is below the reporting threshold is does not need to be reported, it is above the reporting threshold we must notify compliance for record keeping. If it is above the pre-authorisation threshold then a gifts and entertainment form must be completed and submitted to a line manager for approval, who then forwards this to compliance for record keeping.
Under AY’s policy, when it entertainment allowed and not allowed?
Allowed
- when host is present
- in the normal course of business
- purpose is to develop a business relationship
- openly offers and not solicited
Not allowed
- if is may be considered offensive
- where the is an expectation of reciprocity
What is the difference between a gift and a bribe?
A gift is a small gesture, a bribe is given with the expectation of reciprocity in some form.
What should you consider when deciding whether to accept a bribe or hospitality?
Timing
Reciprocity
Proportionality
