Bribery, money laundering and corruption Flashcards
- What is a bribe?
A bribe is an inducement or reward offered, promised or provided to gain any commercial, contractual, regulatory or personal advantage
- What is the bribery act 2010
The bribery act 2010 cover criminal law relating to bribery. The act contains four main bribery offences.
1. Bribing another person
2. Being bribed
3. Bribing a foreign public official and
4. Failure by a commercial organisation to prevent bribery
- What are the 6 principles of the Bribery Act?
- Proportionality – The action taken should be proportionate to the risk and size of the orgasnation
- Top level commitment – Those in senior position are best placed to ensure the organisation conducts
business without bribery - Risk assessment – May organisation will have little or no risk of bribery, but a risk assessment will show the nature or extent of exposure to bribery
- Due diligence – Due diligence procedures must be applied, taking a proportionate and risk based approach, with read to individuals who perform or will perform services on behalf of the orgasnation.
- Communication – Employers will need to communicate their polices and procedures to staff and others who perform services, additional training may help raise awareness (proportionate to the size and type of the orgasnation)
- Monitor and review – As an overarching principle, organisations should monitor and review procedures designed to prevent bribery by persons associated with it and make improvements where necessary.
- To whom does the bribery act 2010 apply?
An individual if?
o A British citizen has committed a bribery offence anywhere in the world
o A British associate with a connection to the UK, such as through business, conducts a bribery offence in or outside the UK.
The act will apply to a company if
o The organisation is incorporated in the UK and has committed a bribery offence anywhere in the world.
o An organisation or partnership that has carried out business in the UK.
- What is your position for compliance with the bribery act?
My company has an anti-bribery and corruption policy which applies to me as an employee. I strictly follow the procedures in the policy. We are asked to undertake training on this once a year.
I would report any act of bribery to the Serious Fraud Office or National Crime Agency
- What are the potential consequences for not adhering to the bribery act?
Maximum prison sentence of 10 years and unlimited fines for a person
Unlimited fines for a business
- What is money laundering?
the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.
- How do you report suspicious money laundering behaviour?
If you suspect that money laundering may be taking place, you are legally obliged under the money laundering regulations to submit a Suspicious Activity Report (SAR) to the National Crime Agency
- A client asks you to take responsibility for making an interim payment to the Contract. The Client gives you half a million pounds in cash to make the payments what would you do in this situation?
o I would not accept the cash and encourage the client to pay the money into a bank account (the responsibility then rests with the bank to check the legitimacy of the cash).
o If I had concerns about the source of the money (from illegal activity for example), I would report this to the National Crime Agency
- What is corruption?
Abuse of an entrusted power for private gain
- What is a price fixing cartel?
A group of independent businesses or countries that act together as if they are a single producer and thus can fix prices for goods or services, they produce which reduces or removes competition
- What is terrorist financing?
The solicitation, collection or provision of funds with the intention to support terrorist acts or orgasnations.
- What is a facilitation payment?
This is a payment made to a public or government official that acts as an incentive for the official to complete some action or process expeditiously, to benefit of the party making the payment.
