Gifts / Bribery Flashcards
What is a bribe?
RICS definition
The offer, promise, giving, demanding or acceptance of an advantage as an inducement for an action that is illegal, unethical or a breach of trust
offering, giving or soliciting an item of value as a means of influencing the actions of another
What are the penalties under the current bribery legislation?
Maximum 10 Years imprisonment
- Unlimited Fine
- Confiscation of property under the Proceeds of Crime Act 2002
- Disqualification of directors under the Company Disqualifications Act 1986
What are facilitation payments and what is their legal status?
A payment made to a government official with the purpose of speeding up a routine administrative action. Legal in some countries but illegal in the UK under the Bribery Act 2010
What is the purpose of the current UK legislation on bribery?
Criminalises bribery in the UK, making it a criminal offence to directly or indirectly:
• Offer, promise or give a bribe
• Request, agree to receive or accept a bribe
• Bribery of a foreign official
• Cooperate bribery
What are RICS requirements on Bribery and corruption for firms?
- Not offer or accept, directly or indirectly, anything that could constitute a bribe
- Have plans in place to comply with applicable laws
- Report any activity they become aware of
- Act with due diligence and identify potential risks of bribery and corruption
- Keep records of how bribery and corruption are dealt with
What are the requirements on Bribes for members?
- Not offer or accept, directly or indirectly, anything that could constitute a bribe
- Ensure they have adequate knowledge of bribery and corruption
- Report any activity that breaches laws
Is hospitality legal under the Bribery Act 2010?
Yes, genuine hospitality or similar business expenditure that is reasonable and proportionate is permitted under the bribery act.
It gives example of tickets to sporting events and dinners.
What are the 4 main offences in the bribery act 2010?
- Offering, promising or giving of a bribe
- Requesting, receiving or accepting of a bribe
- Bribery of a foreign official in order to obtain or retain business or an advantage in the conduct of business
- Corporate bribery for failing to prevent bribery on behalf of a commercial organization
What is C5 gives and hospitality policy?
- Must not give a G/H which is illegal, improper or violates the recipient’s policies
- Must not give a G/H which exceeds £500 (or £1000 per year) unless approved by an employee’s manager
- Must not accept a G/H if it exceeds £250 (or the total value of £1,000 pa)
- Must not accept cash gifts
- Must not accept if there is any suggestion of a return favour being expected.
What is the purpose of a gifts and hospitality policy?
Ensure that there are controls to ensure compliance with all antibribery and corruption regulations
to ensure the business operates in a responsible manner.
What is the RICS guidance on Bribery?
Countering Bribery & Corruption, Money Laundering & Terrorist Financing 1st edition (2019)
What steps does a business need to take to prevent bribery under the act?
A company needs to ensure they have ‘adequate procedures’ in place to prevent bribery.
What classes as adequate procedures will depend on the bribery risks you face, so if you are a small company you will have a small risk of bribery so you won’t have to have the same measures in place as an international company.
What would you do if a contractor offered to take you out for lunch?
Depends on if I felt it was as a means of exercising influence over me. If I accepted it would be on the basis that I would reciprocate the offer.
NB may be acceptable to receive gifts of low value or marketing purposes and hospitality received in the course of a business meeting that can be
reciprocated like a working lunch.
Anything that affects professional opinion is not acceptable.
NB the Bribery Act 2010 applies to corporate criminal offences – the key is transparency. Gifts in the form of cash, where the purpose is clearly to influence a decision are not tolerated.
What does RICS recommend gifts / hospitality?
- RICS recommends that any gifts should be noted in your firms gift register.
- If you are in any doubt, don’t accept it.
- If you are concerned about causing offence by refusing then make it clear when accepting that you are doing so on behalf of the firm, not individually.
- If you are unsure then consult with a senior colleague or refer to the RICS.
What is C5’s gift handling policy?
Must not give a G/H which is illegal, improper or violates the recipient’s policies
• Must not give a G/H which exceeds £500 (or £1,000 pa) unless approved by an Employee’s
manager
• Must not accept a G/H if it exceeds £250 (or the total value of £1,000 pa)
• Must not accept cash gifts
• Must not accept if there is any suggestion of a return favour being expected.
