Bribery And Anti Money Laundering

Question 1

What is the key bribery litigation

Answer 1

The Bribery Act 2010

Question 2

Bribery Act 2010 purpose?

Answer 2

Aims to reduce bribery in UK and global, brine can be giving offering or promising a payment gift or service for an action which is illegal or a breach of trust

Question 3

What are the 6 principle outlined in the bribery act 2010?

Answer 3

1- proportionality
2- top level commitment
3- risk assessment
4- due diligence
5- communication
6- monitoring and review

Question 4

What are the four offences outlined by the bribery act 2010?

Answer 4

1- Bribing
2- Receiving a bribe
3- Bribing a foreign public official
4- failing to prevent a bribe

Question 5

Companies are responsible for employees under bribery unless they can prove they had adequate policies and procedures in place true or false

Answer 5

True

Question 6

Who police’s the Bribery Act 2010?

Answer 6

The serious fraud office

Question 7

If Bribery Act is breached what can happen?

Answer 7

Maximum penalty of 10 years in prison or unlimited fine for both individuals and firms

Question 8

Define money laundering

Answer 8

When proceeds of criminal activities are disguised or converted and then realised as a legitimate asset

Question 9

What act covers money laundering?

Answer 9

Terrorist financing and transfer of funds (information on the prayer) regulations, 2017 (as amended in 2023)

Question 10

What are key provisions of the Terrorist financing and transfer of funds Regulations 2017

Answer 10

1. A requirement to have a written money laundering and terrorist financing risk assessment
2. Implement systems, policies and controls and procedures to address money laundering and terrorist financing risks and meet the requirements under the regulations
3. Adopt appropriate internal controls
4. Provide staff training
5. Comply with new customer, enhanced, and simplified due diligence requirements
6. Comply with the requirements relating to politically exposed persons (PEPs)
7. Ensure appropriate record keeping, policies and procedures
8. AML checks must be undertaken to confirm the identity of the proposed purchaser of a property and check the purchaser’s source of funds by the vendor’s agent before contracts are exchanged.
9. To include additional high-risk tactors when assessing the need for enhanced due diligence, and seek additional information and monitoring in certain cases, e.g. where there are transactions between parties based in high-risk third countries

Question 11

What’s re the two levels of AML due diligence?

Answer 11

1- customer Due Diligence
2- enhanced due diligence

Question 12

What does customer due diligence involve?

Answer 12

-identify and verify client through teliable independent source such as passport

• make reasonable endeavours to identify beneficial owners
• for company need name registration no and address
• names of directors unless part of LSE as will be registered
• obtain info on nature of the business

Question 13

When is enhanced due diligence required?

Answer 13

When dealing with high risk country or politically exposed people

Question 14

What does enhanced due dilligence involve?

Answer 14

More detailed examination of the background and purpose of transaction and increased monitoring

Question 15

Other key requirements of the AML act include?:

Answer 15

° There is a limit of 10,000 Euros for the acceptance of cash

° The on-going business relationship with client should be monitored

° betailed record keeping of the procedures undertaken is required
A senior member of staff / Board member must be appointed to take responsibility for all

• A nominated person (the Money Laundering Reporting Officer) must be appointed to report any suspicions with a Suspicious Activity Report (SAR) to the National Crime Agency who decide what appropriate steps and actions are required

• A Firm to maintain records for minimum of 5 years and to report to Companies House any discrepancies between the information the firm holds on their customers compared with the information held in the Companies House Register

Question 16

What are the penalties associated with anti money laundering?

Answer 16

Maximum 14 year prison sentence and/ or unlimited fine for assisting with money laundering

Maximum 5 years prison for tipping off a person by informing them they are under investigation for AML

Question 17

In CDD what evidence of constitution is required? For a PLC

Answer 17

London stock exchange listing

Question 18

In CDD what evidence of constitution is required? For a publicly accountable body?

Answer 18

Government ownership/ control

Question 19

In CDD what evidence of constitution is required? Private limited company

Answer 19

Certificate of Incorporation
Full name, registered number, registered office, business address, names of all directors and names of all shareholders with 25% or more holding. Identification ot a higher risk client
N.B. Report any discrepancies to Companies House

Question 20

In CDD what evidence of constitution is required? For a private individual?

Answer 20

Copy of valid passport or driving licence with photo
Copy of a bank statement, credit card bill, council tax statement or utility bill to show evidence of address, not more than 3 months Old

Question 21

What are potential red flags when being vigilant for AML

Answer 21

• inability or unwillingness to provide identity documents
• changes to parties involved in transactions
• unusual transaction features, such as unexpected urgency, potential loss making
• payment of fees, purchase or rental monies in unusual currencies

Question 22

Names some other relevant legislation to AML?

Answer 22

Sanctions and AML Act 2018

Proceeds of crime Act 2002

Economic Crime (Transparency and Enforcement) Act 2022

Question 23

What is the professional standard that guides MEmbers on AML

Answer 23

Professional standard: Countering bribery, corruption, money laundering and terrorist financing 2019

Question 24

What does the PS: CBCMLTF 2019 do?

Answer 24

Sets out mandatory globally applicable requirements for RICS members and firms in relation to above

Question 25

How many parts in PS : Countering bribery…..

Answer 25

3 parts

Question 26

Part 1 of PS countering bribery, corruption….. includes what

Answer 26

Mandatory requirements for the above

Bribery and corruption (B&C)
•RICS regulated lirms must.
Not ofter or accapt anything that could constitute a bribe
Have procedures in place to comply with the law Report suspicion to the relevant authorily
Act with due diligence to perform periodic written evaluations of the risks the firm faces
Retain records to show have the firm has met the requirements of this Professional Statement

Money laundering and terrorist financing (ML & TF)
•RICS regulated firms must.
• Not facilitate or be complicit in ML and TF
• Have systems in place to comply with the laws
• Report suspicion
. Evaluate and review the risks presented to the firm
Use third party reliance for checks only where there is a level of confidence for the quality of information provided by the third party
. Take appropriate measures to understand the client and the purpose of the instruction
. Verify the client by undertaking basic ID checks
Retain records to show have the firm has met the requirements of the Professional Statement

Question 27

Part 2 of PS Countering bribery, corruption money laundering and tf… includes

Answer 27

Guidance setting out supporting good practice for above

PART 2
Guidance
• Practical guidance is provided such as:
. Have a written policy in place for, and senior management to take control of, the procedures
• Publish a code of behaviour for staff and provide staff training
• Encourage transparency
• Set up a gifts register
• Keep up to date with the legislation

Question 28

Part 3 of PS: Cbribery corruption money launding and terrorist financing 2019 includes

Answer 28

Supplementary guidance on the consents set out in p1 and p2

PART 3
Supplementary guidance
• Provided on a range of issues, including:
• Establishing a risks-based approach: Consider the three Ws when assessing risks to your business
•Who you act for
•What you are doing, and
• Why you are being asked to do something
•Dealing with politically-exposed persons (PEPs): They are higher risk as they hold positions of influence and enhanced due diligence is required
• The need to identify the beneficial ownership of a company, partnership or trust - such as by requesting a recent Certificate of Incorporation or Annual Return for a compan