Part 2: Ethics Flashcards
What is the key legislation to consider for Bribery?
Bribery Act 2010 and Proceeds of Crime Act 2002
Whats the aim for the Bribery Act 2010
To reduce bribery in business sin the UK and abroad
What is a bribe?
Giving, offering or receiving an advantage such as payment, gift or service
What are the six principles of the bribery Act 2010?
- proportionality
- top level commitment
- risk assessment
- due diligence
- communication
- monitoring and review
What are the four offences of Bribery Act 2010?
- Bribing
- Receiving a bribe
- Bribing a public official
- Failing to prevent a bribe
Who policies the Bribery Act and what’s the penalty?
Serious Fraud Office
10 years imprisonment and or unlimited fine
What is the AML Regulation?
Anti Money Laundering and Terrorist Financing and Transfer of Funds Regulations 2017
UK Government Sanctions?
Wider sanctions have been issued in light of the Ukraine conflict
RICS provides guidance in Anti-Money Laundering sanctions update, March 2022 which provides a reminder above sanctions and estate agency role in enforcing these including;
understanding the risk factor and red flags
using software as part of your due diligence
check existing clients regularly
What would you do if you’re client was on the sanctions list?
Contact the Office of Financial Sanctions Implementation for assistance
What is customer Due Diligence Checks?
Identify the client and verify their identity based on a reliable independent source
Make reasonable endeavours to identify beneficial owners of the client
For a company, its name, company number and address of registered office
The names of the directors are required unless the company is listed on a regulated market
Obtain information on the proposed funding arrangements
What is enhanced Due Diligence Checks?
Additional procedures are required if a person involved in the transaction is established in a high risk third country or a PEP or a PEP family member/business associate.
More detailed background checks and into purpose
What is a PEP?
Someone who has been entrusted with a prominent public function.
Someone that is high risk to bribery and corruption
What is the limit required (in rent terms) for AML checks?
10,000 euros per month
Who should the MLRO report suspicious crime to?
National Crime Agency
What are the penalties for not complying with AML?
Max. 14 years prison sentence unlimited fine for assisting
Max. 5 years prison sentence and/or unlimited fine for tipping a person by informing them that they are under suspicion for money laundering
AML requirement for Private Limited Company?
Certificate of incorporation
Full name, registered number, office address
Name of directors that are shareholders with 25& or more holding
What are red flags (*AML)?
Inability to provide identification
Unusual transactions
Payment of fees, purchase in unusual currencies
What is the proceeds of crime act?
Provides power for enforcement authorities in the UK to recover in criminal an civil proceeding money and other asset which are deemed to be the proceeds of crime
What is the professional statement on bribery, corruption etc?
Countering Bribery, corruption, money laundering and terrorists financing (2019)
What’s the breakdown of the Countering Bribery, corruption, money laundering and terrorists financing (2019) professional statement?
Mandatory requirements
Guidance setting out supporting best practise
Supplementary guidance
What is Part 1 of Countering Bribery, corruption, money laundering and terrorists financing (2019)?
Bribery & Corruption
RICS regulated forms must:
- Not offer or accept bribes
- Have procedures in place to comply with the law
- Report suspicion
Money laundering and terrorist financing
RICS regulated forms must:
- Not facilitate or be complicit to ML or TF
- Have systems in place to comply with law
- Report suspicion
- Valuate risk to the firm
- Verify the client with ID checks
What is Part 2 of Countering Bribery, corruption, money laundering and terrorists financing (2019)?
GUIDANCE
- have a written policy in place
- Publish a code of behaviour
- Encourage transparency
-Set up a gifts register
What is Part 3 of Countering Bribery, corruption, money laundering and terrorists financing (2019)?
SUPPLEMENTARY GUIDANCE
- Dealing with PEP
- The need to identify beneficial owners of a company/trust
