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RICS Investment and Finance Pathway > Bribery and Money Laundering > Flashcards

Bribery and Money Laundering Flashcards

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1
Q

What Acts and regulations are you aware of relating to Bribery, Money Laundering and Corruption?

A

Bribery Act (2010)
Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations (2017)
Proceeds of Crime Act (2002)

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2
Q

Are you aware of any RICS documents of this topic?

A

RICS Professional Statement - Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)

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3
Q

Are you aware of any new bills which the government are introducing to try and combat money laundering?

A

Registration of Overseas Entities Bill

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4
Q

What is the Bribery Act (2010)?

A

The Bribery Act is an Act of parliament which provides principles to follow for bribery prevention and aims to reduce bribery in businesses in the UK and abroad

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5
Q

Is non-compliance with the Bribery Act a criminal offence?

A

Yes

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6
Q

What is the aim of the Bribery Act?

A

To reduce bribery in businesses across the UK

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7
Q

What is a bribe?

A

Persuade (someone) to act in one’s favor, typically illegally or dishonestly, by a gift of money or other inducement.

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8
Q

What are the six principles for bribery prevention under the Bribery Act?

A
  1. Proportionality
  2. Top Level Commitment
  3. Risk assessment
  4. Due diligence
  5. Communication
  6. Monitor and review
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9
Q

What are the four offences under the Bribery Act?

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a foreign official
  4. Failure to prevent a bribe
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10
Q

Are companies responsible for their employees corrupt acts?

A

Yes, unless they can show that they have put adequate policies and procedures in place to combat bribery.

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11
Q

Give me some examples of the types of policies / procedures companies could put in place to combat bribery.

A

Staff training
Provision of policies
Regular reviews

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12
Q

Can certain forms of lavish entertainment be classified as bribery?

A

Yes if it is not reasonable and proportionate

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13
Q

Is hospitality prohibited by the Act?

A

No as long as it is reasonable and proportionate and it is registered in a gift and hospitality register.

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14
Q

Are cash gifts allowed?

A

No cash payment over 10,000 euros can be accepted under the Money Laundering Regulations (2017)

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15
Q

What should be considered with gifts in kind?

A

Income tax liability

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16
Q

Can you accept a gift from a 3rd party or contractor?

A

No

17
Q

Who is the Bribery Act policed by?

A

The Serious Fraud Office (SFO)

18
Q

What are the penalties for non-compliance with the Bribery Act for individuals?

A

Unlimited fine and/or max. 10 years imprisonment

19
Q

What are the penalties for non-compliance with the Bribery Act for companies?

A

Unlimited fine

20
Q

Are you aware of any case law relating to bribery?

A

In 2016, SWEET GROUP were prosecuted for a bribe offered to a Middle Eastern Business - fined £1.4m by Serious Fraud Office and £250k by RICS

21
Q

What should you consider if asked a question on bribery and hospitality?

A

THE LAW - Bribery Act 2010
Your firms procedures
Consider -
Proportionality
Timing
Reciprocation

Tax implications and money laundering (cash)
Employment contract details

22
Q

What are you firms anti-Bribery procedures?

A

Do no accept or give cash
Must have prior approval for gifts or hospitality over £100
All gifts and hospitality must be registered on a gift register
Must comply with the Bribery Act and RICS Professional Statement - mirrors obligations

23
Q

Is hospitality, promotional and other ‘low’ value business expenditure which seeks to genuinely promote and improve the image of a firm acceptable?

A

Yes it is, in accordance with anti-bribery policy.

24
Q

What is money laundering?

A

When the proceeds of crime are disguised and realised as legitimate assets

25
Q

What type of work does the Money Laundering, Terrorist Financing and Transfer of Funds Regulations cover?

A

Agency work and other relevant financial business work

26
Q

What are the key provisions of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations?

A
  1. Requirement to conduct a written ML and TF risk assessment for the firm
  2. Implement systems, policies, procedures and controls
  3. Provide staff training
  4. Comply with new customer due diligence
  5. Comply with requirements relating to PEP
  6. Ensure appropriate record keeping
  7. AML checks to confirm the identity of the proposed purchaser of a property and check the purchaser’s source of funds before contracts are exchanged. (THINK AUCTIONEERING)
27
Q

What are the three levels of AML due diligence?

A
  1. Customer DD
  2. Enhanced DD
  3. Simple DD
28
Q

What would you need to do to carry out appropriate due diligence on an individual?

A

Identify the individual based on a reliable independent source - passport or driving licence
Where applicable identify the beneficial owners. Copy of bank statement, utility bill etc. within the last 3 months to show evidence of their address. Obtain information on the purpose for the purchase and check the purchasers source of funds

29
Q

What would you need to do to carry out appropriate due diligence on a private limited company?

A

Request the full company name, company number, address of the registered office, the names of the company directors and names of shareholders with 25% or more holding.
Obtain information on the purpose for the purchase and check the purchasers source of funds

30
Q

How would you carryout money laundering checks on a public limited company?

A

I would request evidence of their London Stock Exchange listing.

31
Q

How would you carryout money laundering checks on a publicly accountable body?

A

How would you carryout money laundering checks on a publicly accountable body?

32
Q

How would you carryout money laundering checks on a publicly accountable body?

A

If the transaction involved a person from a ‘high risk country’ or a PEP or a family member / business associate of a PEP

33
Q

How would you carry out enhance DD checks?

A

Additional procedures and more detailed examination of the background and purpose of the transaction is required.

34
Q

What is a PEP?

A

Politically exposed person - someone who has been entrusted with a prominent public function

35
Q

Why must you carry out enhanced DD checks on PEPs?

A

Why must you carry out enhanced DD checks on PEPs?

36
Q

Would you ever use simplified DD on parties involved in a property transactions / when would you use it?

A

Would you ever use simplified DD on parties involved in a property transactions / when would you use it?

37
Q

Is there a limit on the amount of cash which can be accepted or paid under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations (2017)?

A

Yes - 10,000 euros

RICS Investment and Finance Pathway (54 decks)

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