RICS - Client Care

Question 1

What are the RICS Rules of Conduct for Members and

RICS Rules of Conduct for Firms ?

Answer 1

These Rules set out the standards
of professional conduct and practice
expected of members and firms registered
for regulation by RICS

Question 2

What are the RICS International Standards (RICS Documents) ?

Answer 2

High-level standard developed in

collaboration with other relevant bodies.

Question 3

What are the RICS Professional Statement (RICS Documents) ?

Answer 3

Mandatory requirements for RICS

members and regulated firms

Question 4

What are the RICS guidance notes ?

Answer 4

A document that provides users with
recommendations or an approach for
accepted good practice as followed
by competent and conscientious
practitioners.

Question 5

What are RICS code of practice (documents) ?

Answer 5

A document developed in collaboration with
other professional bodies and stakeholders
that will have the status of a professional
statement or guidance note.

Question 6

What are RICS jurisdiction guides ?

Answer 6

This provides relevant local market
information associated with an
RICS international standard or RICS
professional statement. This will
include local legislation, associations
and professional bodies as well as any
other useful information that will help a
user understand the local requirements
connected with the standard or statement.
This is not guidance or best practice
material, but rather information to support
adoption and implementation of the
standard or statement locally.

Question 7

What is Adequate Knowledge ?

Answer 7

An appropriate understanding of the issues and responses
connected to bribery, corruption, money laundering and terrorist financing so that the
individual can apply the requirements of this professional statement to their role. This
level of knowledge will vary depending on the sector, organisation and role that the
individual works in. The knowledge may be gained through attending training, private
study or work-based experience.

Question 8

What are Applicable Laws ?

Answer 8

The local and global laws and regulations that apply to firms and
individuals. These may depend on the main place of business, where the alleged
corrupt act or bribe was paid or received, or the country in which a parent company is
registered.

Question 9

What is beneficial ownership / owner ?

Answer 9

Anyone who benefits from ownership of a security or
property, who may or may not be on record as the owner. This also incorporates those
who exercise ultimate effective control over a legal person or arrangement. In many
jurisdictions the beneficial owner is defined as an individual who owns or controls 25%
or more of the shares or profits of a legal entity.

Question 10

What is Bribery ?

Answer 10

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.

Question 11

What is Corruption ?

Answer 11

The misuse of public office or power for private gain, or misuse of private
power in relation to business practice and performance.

Question 12

What is Customer due diligence (CDD)/know your customer (KYC) ?

Answer 12

Taking the appropriate
steps to ascertain who the customer or client is and, if relevant, their ultimate beneficial
owner is and counterparty. These can be relatively simple checks to verify the identity
of the customer/client or may entail deeper investigations. This is a legal and regulatory
requirement in many countries.

Question 13

What is Facilitation Payment ?

Answer 13

A payment made to a government official with the purpose of
speeding up a routine administrative action. Such payments are customary and legal in
some countries, but in many jurisdictions they are criminalised.

Question 14

What is money laundering ?

Answer 14

Concealing the source of the proceeds of criminal activity to
disguise their illegal origin. This may take place through hiding, transferring and/or
recycling illicit money or other currency through one or more transactions, or converting
criminal proceeds into seemingly legitimate property.

Question 15

What is a person of Significant Control ?

Answer 15

Individuals or legal entities who have significant
control or influence over a company. This control and influence can be exercised in a
variety of ways, for instance the individual has absolute veto rights over decisions related
to the running of the company

Question 16

What is a politically exposed person ?

Answer 16

Individuals and the family members of such
individuals, entrusted with prominent public functions by any country or international
organisation. This includes heads of state or government, senior politicians, senior
rics.org
Effective from 1 September 2019 RICS professional statement 3
governmental, judicial or military officials, senior executives of state-owned corporations
and directors, deputy directors and members of the board or equivalent functions within
international organisations. PEPs who relinquish office or their relatives who cease being
family members (e.g. through divorce) are no longer treated as PEPs 12 months after this
occurs.

Question 17

What is a Price-fixing monopoly-cartel ?

Answer 17

A group of formally independent producers of goods
or services whose goal is to increase their collective profits by pushing the price of a
product as high as possible (or perhaps fix, peg, discount or stabilise prices), generally
leading to profits for all sellers.

Question 18

Who are Professional money launderers ?

Answer 18

Those that specialise in enabling criminals to evade
anti-money laundering and counter-terrorist financing safeguards and sanctions. They
perform this function for a fee or commission. For instance, tax advisers, lawyers or
accountants who act as professional facilitators for criminals.

Question 19

What are Red Flags ?

Answer 19

Common characteristics that either individually or in combination might
indicate potential misuse of the real estate sector for money laundering or terrorist
financing purposes.

Question 20

What is Reliance ?

Answer 20

The extent to which the required checks on individuals or companies have
been undertaken satisfactorily by a third party, meaning that these checks do not need
to be duplicated.

Question 21

What is Terrorist Financing ?

Answer 21

The solicitation, collection or provision of funds with the intention
that they may be used to support terrorist acts or organisations. Funds appropriated
directly or indirectly for this purpose constitute terrorist funding.

Question 22

Who does RICS prevent Bribery ?

Answer 22

RICS Professional Statement: Countering bribery,
corruption, money
laundering and terrorist
financing