Part 2: Proffesional Practice Issues Flashcards
What is the key legislation for gifts bribery and corruption?
Bribery Act 210
Proceeds of Crime Act 2002
What is a bribe?
Giving or receiving of an advantage such as a payment or gift or service for an action which is illegal or a breach of trust.
What are the four offences under the bribery act 2010?
- Giving a bribe
- Receiving a bribe
- Failing to prevent a bribe
- Bribing a government or foreign official
What are your responsibilities under the bribery act 2010?
Not to commit any of the 4 offences under bribery act and to ensure to report any suspicion
Can an employer be responsible for an employees corrupt act?
Yes unless they can prove they had adequate policies and procedures in place to combat bribery
Who is the bribery act policed by and what are the penalties if the act is breached?
Serious fraud officer
Max penalty of 10 years and or unlimited fine for individuals.
Companies face an unlimited fine.
What is the purpose of the bribery act 2010?
To reduce bribery in business the uk and abroad
What are the 6 principles of the bribery act 2010
- Proportionality
- Top level commitment
- Risk assessment
- Due diligence
- Communication
- Monitoring and review
What are the wider sanctions in respect of AML and the Ukraine conflict and is there any guidance?
Wider sanctions have been issued.
Ricks provide guidance in “AML sanctions update, March 2022” which provides a reminder about sanctions and estate agents role in enforcing these such as:
- Considering risks as a business as part of your aml checks
- understanding risk factors and red flags
- using software as part of DD if firm likely to deal with
- what to do if your client is on the sanctions list
What AML client due diligence is required for a private limited company?
- Certificate of incorporation
- full name, registered number, registered office
- business address
- names of all directors and shareholders with 25% or more holding
What AML client due diligence checks are required for a private individual?
Valid Photo ID - driving license or passport
Proof of address - bank statement, credit card bill, council tax statement or utility bill.
(Dated within last 3 months)
What are the penalties for money laundering?
Max 14 years in prison and or unlimited fine for assisting with money laundering.
Max 5 years in prison and or unlimited fine for by informing someone they are under suspicion of money laundering.
What are some of the red flags for money laundering?
- inability or unwillingness to provide identity documents
- changes to parties involved in transactions
- unusual transaction features, such as unexpected urgency required by parties / potential loss making or unusual transaction.
- payment of fees / purchase or rental monies in unusual currencies
What is the proceeds of crime act 2002?
Provides powers for enforcement authorities in the UK to recover criminal and civil proceedings.
It also creates criminal offences intended to combat money laundering.
What are the three main offences under the proceeds of crime act 2002?
- Concealing criminal property
- Arrangements - If a person becomes involved in arrangements or suspect facilitates acquisition, retention, use, or control of criminal property by or on behalf of another person.
- Acquisition, use or possession.
