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APC 2022 - Planning & Development > AML/ Terrorist Financing > Flashcards

AML/ Terrorist Financing Flashcards

1
Q

What is the aim of the Bribery Act, 2010?

A

It aims to reduce bribery in business in the UK and abroad.

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2
Q

What are the 6 Principles of the Bribery Act?

A
  • Consistency
  • Proportionality
  • Due Diligence
  • Risk Assessment
  • Monitoring & review
  • Top Level Commitment
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3
Q

What are the four offences of the Bribery Act?

A
  • Giving a Bribe
  • Receiving a Bribe
  • Facilitating a Bribe
  • Bribing a public official
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4
Q

Who is responsible for corrupt acts within companies?

A

Companies are responsible for the corrupt acts of their employees. The only defence is that the correct procedures were in place to prevent bribery.

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5
Q

What are the Penalties under the Bribery Act?

A

Up to 10 years in prison for the individual and an unlimited fine for companies. Policed by the Serious Fraud Office.

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6
Q

What is your companies gift policy?

A
  • Gifts over £50 must be declined. However, if doing so would cause offence, you must work with your Manager / Head of Office to raffle the goods for charity, or share amongst the team. These must also be logged in the Savills UK gift register.
  • All gifts proposed to be sent to a client over £50 must be pre-approved by your Head of Division and also logged in the Savills UK gift register.
  • You must never give or receive gift vouchers / gift cards (as these are cash equivalents).
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7
Q

What is your companies entertainment policy?

A
  • All entertainment over £125 per head (or an aggregate of £500 per head per year) to be pre-approved by your Head of Division.
  • You must never give or receive gifts/entertainment if you are undertaking a tender process with the client/supplier.
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8
Q

What is your companies entertainment policy?

A
  • All entertainment over £125 per head (or an aggregate of £500 per head per year) to be pre-approved by your Head of Division.
  • You must never give or receive gifts/entertainment if you are undertaking a tender process with the client/supplier.
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9
Q

What is Money Laundering?

A

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

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10
Q

What are the Key Provisions of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, amended 2019?

A
  • Firms must have:
    • written money laundering or terrorist financing risk assessment
    • Implement systems to address money laundering and terrorist financing risks
    • Adopt appropriate internal controls
    • Provide staff training
    • Keep records
  • Agents must:
    • Comply with new customer Due Diligence checks.
    • Edd for PEPs and seek additional info in certain cases
    • AML checks must be undertaken to confirm the identity of a proposed purchaser
    • check the purchasers source of funds by the vendors agent before contracts are exchanged.
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11
Q

What are an Estate Agents Legal obligations for AML?

A

CDD Checks on vendors, purchasers, landlords and tenants will have to be undertaken on any new sales/ letting or reletting.

EDD Checks will have to be undertaken if red flags occur (e.g. involving high risk countries or non face to face business relationships.

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12
Q

When would firms scrutinise transactions?

A

If they are:

  • Complex
  • Unusually large
  • Part of an unusual pattern of transactions
  • Without apparent economic or legal purpose
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13
Q

What is CDD for an individual?

A
  • Copy of Passport or driving license with photo
  • Copy of bank statement, credit card bill, council tax statement or utility bill to show evidence of address - not more than 3 months old.
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14
Q

What is CDD for a PLC?

A

London Stock Exchange listing

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15
Q

What is CDD for a publicly accountable body?

A

Establish the government ownership or control

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16
Q

what is the CDD for a Private Limited Company?

A
  • Certificate of Incorporation
  • Full name, registered number/ office/ business address
  • Names of all directors and all shareholder with 25% or more holding

(any discrepancies should be reported to companies house)

17
Q

What is a PEP?

A

A politically exposed person - someone who has been entrusted with a prominent public function

18
Q

Why does a PEP need EDD?

A

Due to the position and influence they hold, there presents a higher risk for potential involvement in bribery and corruption.

19
Q

When are EDD needed?

A

Additional procedures are needed for any transaction or business relationship involving a person who:

  • Is a PEP
  • is in a high risk third country
20
Q

What are EDD?

A

Additional procedures requiring additional evidence and monitoring and a more detailed examination of the background and purpose of the transaction.

21
Q

How long should firms hold AML data?

A

5 years - companies should also report any discrepancies between the information on their customers compared to the information on companies house.

22
Q

What are the penalties for non- compliance with the Money Laundering, terrorist financing and transfer of funds regulations?

A

Money Laundering - 14 years in prison and or an unlimited fine

Tipping off/ failing to report suspicion of money laundering - 5 years in prison and/ or unlimited fine.

23
Q

What are the Money Laundering ‘RED FLAGS’

A
  • Inability or Unwillingness to provide ID documents
  • Changes to parties involved in transactions
  • unusual transaction features, such as sudden unexplained urgency, potential loss making or unusual transactions for a client
  • payment is unusual currencies
24
Q

Who reports to the national crime agency and how?

A

The money laundering reporting officer must be appointed to raise a Suspicious activity report (SAR) to national crime agency

25
Q

What is the limit for the acceptance of cash?

A

10,000 euros

26
Q

What are the offences under the Proceeds of Crime Act?

A
  1. Concealing Criminal Property
  2. Facilitation of concealing Criminal Property
  3. Acquisition, use or possession
27
Q

Does the RICS provide any guidance on Money Laundering?

A

Yes - RICS Professional Statement - Countering Bribery, Corruption Money Laundering and Terrorist Financing, 2019

28
Q

What is the RICS Professional Statement on Countering Corruption, Bribery, Money Laundering and Terrorist Financing 2019?

A

A mandatory document outlining the globally applicable requirements for RICS members and regulated firms in relation to bribery corruption, money laundering and terrorist financing?

29
Q

What is the structure of the RICS Professional Statement Countering Corruption, Bribery, Money Laundering and Terrorist Financing?

A

Divided into 3 parts and outlines mandatory requirements, best practice guidance and supplementary guidance.

30
Q

What is included within part 1 of the RICS Professional Statement Countering Corruption, Bribery, Money Laundering and Terrorist Financing?

A

Requirements for RICS regulated firms:

Bribery and Corruption

  • Not offer or accept anything that may constitute a bribe
  • Have procedures in place that comply with the law
  • Report Suspicious Activity
  • Keep written records to show the firm has met the requirements of this Prof Statement

ML & TF

  • Not facilitate or be complicit in ML or TF
  • Have systems in place to comply with the law
  • Verify the client through ID checks
  • Only rely on third parties where there is a level of confidence in the quality of the information provided.
31
Q

What is included within part 2 of the RICS Professional Statement Countering Corruption, Bribery, Money Laundering and Terrorist Financing?

A

Best Practice Practical Guidance:

  • Setting up a gift register
  • Code of behaviours for staff
  • Encouraging transparency
32
Q

What is included within part 3 of the RICS Professional Statement Countering Corruption, Bribery, Money Laundering and Terrorist Financing?

A

Supplementary Guidance:

  • Dealing with PEPs

APC 2022 - Planning & Development (21 decks)

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