Professional Practice Issues

Question 1

What are the two key legislation to consider with gifts, bribery and corruption?

Answer 1

1. Bribery Act 2010
2. Proceeds of Crime Act 2002

Question 2

What is a bribe?

Answer 2

The giving, offering, promising or receiving of an advantage such as payment, gift or a service for an action which is illegal or a breach of trust

Question 3

What six principles is the Bribery Act based on?

Answer 3

1. Proportionality
2. Top level commitment
3. Risk assessment
4. Due diligence
5. Communication
6. Monitoring and review

Question 4

What are the four offences under the Bribery Act 2010?

Answer 4

1. Bribing
2. Receiving a bribe
3. Bribing a foreign public official
4. Failing to prevent bribery

Question 5

Who is the Bribery Act 2010 policed by?

Answer 5

Serious Fraud Office

Question 6

What happens if the Act is breached?

Answer 6

A maximum penalty of 10 years imprisonment and/or an unlimited fine for individuals and companies face an unlimited fine

Question 7

What regulations govern money laundering?

Answer 7

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

Question 8

What is money laundering?

Answer 8

When proceeds of criminal activities are disguised or converted and then realised as legitimate assets

Question 9

What do the money laundering regulations cover?

Answer 9

Estate agency work and relevant financial business work inside and outside the UK by a firm

Question 10

What are some of the key provisions of the regulations?

Answer 10

1. A requirement to have a written money laundering and terrorist financing risk assessment
2. Adopt appropriate internal controls
3. Provide staff training
4. Ensure appropriate record keeping, policies and procedures

Question 11

What RICS document provides guidance on UK Government Sanctions?

Answer 11

Anti-money laundering sanctions update, March 2022

Question 12

What are the two levels of due diligence checks?

Answer 12

1. Customer due diligence
2. Enhanced due diligence

Question 13

What is the limit for the acceptance of cash under the ML Regulations?

Answer 13

10,000 euros

Question 14

How many years should firms maintain records for under the ML Regulations?

Answer 14

Minimum of 5

Question 15

What are the penalties for failure to comply with regulations?

Answer 15

• Maximum 14 years prison sentence and/or unlimited fine for assisting with money laundering
• Maximum 5 years prison sentence and/or unlimited fine for tipping off a person by informing them that they are under suspicion for money laundering or for failing to support suspicion

Question 16

Name some of the red flags associated with potential money laundering

Answer 16

• Inability or unwillingness of parties to provide identity documents
• Changes to parties involved in transactions
• Unusual transaction features

Question 17

What does the Proceeds of Crime Act 2002 do?

Answer 17

Provides powers for enforcement authorities to recover in criminal and civil proceedings money and other assets which are deemed to be the proceeds of crime

Question 18

What are the three main areas of offence under the Proceeds of Crime Act 2002?

Answer 18

1. Concealing criminal property
2. Arrangements
3. Acquisition use and possession