Anti-bribery and Money Laundering Flashcards
What RICS material covers Anti-bribery guidance?
“February 2019 : Countering Bribery And Corruption, Money Laundering And Terrorist Financing, 1st Edition”
What legislation covers Anti- Bribery?
Terrorism Act 2000
Proceeds of Crime Act 2002
Bribery Act 2010
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017)
Criminal Finances Act 2017
Give a summary of the legislation’s purpose
Broadly speaking, the Terrorist Act 2000 and Proceeds of Crime Act 2002 prohibit, among other things, the purchase of property with the proceeds of crime or its use for terrorism, and enable anyone with suspicions about such acts to report them, overriding any duties of confidentiality.
The 2010 Act prohibits the payment of bribes and makes commercial bodies criminally liable for such payments by persons associated with them unless they can show they had adequate procedures in place to prevent it.
The MLR 2017 sets out the additional obligations of private sector firms working in areas of higher money laundering risk. They aim to stop criminals using professional services to launder money by requiring professionals to take a risk-based approach. Firms must put measures in place to identify their clients and monitor how they use their services.
The Criminal Finances Act 2017 makes a firm liable if someone associated with it enables tax evasion.
How can suspicions of bribery and money laundering be reported?
Officially through the National Crime Agency online portal
Through line manager within AY, and through the whistleblowing service at AY
What are the requirements for businesses in the regulated sector?
Those in the financial, estate agency, lawyers and accountants (among others) are required under the 2000 and 2002 Acts to report where there are reasonable grounds to suspect money laundering or terrorist financing
The MLR 2017 also requires those firms to produce a written statement of due diligence applied to customers based on risks identified. For estate agents both parties to a transaction need to be checked. A Money Laundering Reporting Officer also has to be appointed.
What does the RICS professional statement “ Countering bribery and corruption money laundering and terrorist financing” say?
The statement requires firms to plan compliance with applicable laws, ensure any such plans are followed, and perform periodic written evaluations of their risks in this area.
it also requires firms and members to report to the relevant authorities any activity which they are aware breaches bribery or corruption laws, and demands members ensure they have sufficient knowledge of bribery and corruption to comply with the statement.
The professional statement imposes on firms and members the requirements equivalent to the UK regulated sector in general. For firms that includes the same requirements governing bribery and conducting due diligence on clients and customers
Statement obligation to report suspicions of money laundering or terrorist financing applies to all firms and members.
To comply with the statement members have to report suspicions both to the reporting officer and the police. There is no allowance in the statement for not having sufficient knowledge to not report suspicions.
What is the definition of a bribe?
Giving, offering promising or receiving of an advantage such as a payment, gift or service for an action which is illegal or a breach of trust
When is a facilitation payment allowed under the Bribery act 2010?
When you are under duress
Eg if there is a real and present risk or danger to life limb or liberty
Put safety first and make the payment and report it
What are the main principles of the bribery act?
Offences are:
Making a bribe
Receiving a bribe
Bribery if a foreign public official
Failure of a corporate entity to prevent bribery on its behalf
Legislation applies to all UK entities and includes associated persons for example sub consultants and external advisors
Under the Bribery act 2010 what are the six principles of prevention companies should put in place?
Proportionate procedures
Top level commitment
Risk assessments
Due diligence
Communication
Monitoring and review
What are the penalties under the Bribery act
Unlimited fines and 10 years in prison
