Bribery, Money Laundering & Corruption Flashcards
What is a bribe?
An inducement or reward offered, promised, or provided to gain any commercial, contractual regulatory or personal advantage.
What is the Bribery Act 2010?
Criminal law relating to bribery
Contains 4 main bribery offences:
- Bribing another person
- Being bribed
- Bribing a foreign public official
- Failure by a commercial organisation to prevent bribery
What are the 6 principles of prevention of the Bribery Act?
PROPORTIONALITY: Action taken should be proportionate to the risk and size of the organisation
TOP LEVEL COMMITMENT
RISK ASSESSMENT: Required to show the nature or extent of organisation’s exposure to bribery
DUE DILIGENCE: Measures should be proportionate and risk-based, with regard to individuals who perform or will perform services on behalf of the organisation.
COMMUNICATION: Employers to communicate their policies and procedures to staff
MONITORING AND REVIEW: Organisations are responsible for monitoring and reviewing procedures designed to prevent bribery by persons associated with it and make improvements where necessary.
Who does the Bribery Act 2010 apply to?
Any individual who has commited a bribery offence and is:
- A British citizen
- A British associate with a connection to the UK, such as through business
Any organisation which commits a bribery offence and:
- Is Incorportated in the UK and commits the offence anywhere in the world
- Has carried out business in the UK
The legislation applies to all UK entities and includes associated persons (for example sub-consultants and external advisors).
What is your position for compliance with the Bribery Act 2010?
- My company has an anti-bribery and corruption policy which applies to me as an employee. I strictly follow the procedures in the policy.
- I would report any act of bribery to the Serioues Fraud Office or the National Crime Agency.
What are the potential consequences for not adhering to the Bribery Act 2010?
- Individuals or organisations convicted of the offences of bribing another, being bribed or bribing a foreign public official can be liable on conviction to unlimited fines, and individuals can recieve a prison sentence of up to 10 years.
An organisation can be convicted for failure to prevent bribery with the penalty being an unlimited fine.
How do you report suspicious money laundering behaviour?
If you suspect money laundering may be taking place, you are legally obligated under the Money Laundering Regulations to submit a SAR (suspicous activity report) to the National Crime Agency.
What is money laundering?
Generic term to describe the process by which criminals disguise original ownership and control of the proceeds of criminal conduct by making such money appear to have derived from a legitimate source.
What is the Proceeds of Crime Act 2002 (POCA 2002)?
According to POCA 2002, a person can commit a money laundering offence if they:
- conceal, disguise, convert or transfer criminal property, or remove criminal property from England and Wales, or from Scotland or from Northern Ireland (section 327); or
- enter into or becomes concerned in an arrangement which he knows or suspects facilitates (by whatever means) the acquisition, retention, use or control of criminal property by or on behalf of another person (section 328); or
acquire, use or have possession of criminal property except where adequate consideration was given for the property (section 329)
A client asks you to take responsibility for making interim payments to the contractor. The client gives you have a million pounds in cash to make the payments. What would you do in this situation?
- I would not accept cash. I would encourage my client to pay the cash into a bank account (the responsibility then rests with the bank to check the legitimacy of the cash).
- If I had concerns about the source of the money (from illegal activity for example) I would report the matter to the National Crime Agency.
What is corruption?
The abuse of entrusted power for private gain
What is a price-fixing cartel?
A collection of otherwise independent businesses or countries that act together as if they were a single producer and thus can ‘fix’ the prices for the goods they produce and/or services they render, without (or with reduced) competition.
What is terrorist financing?
The solicitation, collection or provision of funds with the intention to support terrorist acts or organisations.
What is a facilitation payment?
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 the benefit of the party making the payment.
Under the Bribery Act, under waht circumstance is a facilitation payment permitted?
- The ONLY circumstance in which it is ok to make a facilitiation payment is when you are under duress
- You should put safety first, make the payment and report the matter immediately or as soon as is practicable to your manager or your ethics compliance contact
