AML/ Terrorist Financing Flashcards
(32 cards)
What is the aim of the Bribery Act, 2010?
It aims to reduce bribery in business in the UK and abroad.
What are the 6 Principles of the Bribery Act?
- Consistency
- Proportionality
- Due Diligence
- Risk Assessment
- Monitoring & review
- Top Level Commitment
What are the four offences of the Bribery Act?
- Giving a Bribe
- Receiving a Bribe
- Facilitating a Bribe
- Bribing a public official
Who is responsible for corrupt acts within companies?
Companies are responsible for the corrupt acts of their employees. The only defence is that the correct procedures were in place to prevent bribery.
What are the Penalties under the Bribery Act?
Up to 10 years in prison for the individual and an unlimited fine for companies. Policed by the Serious Fraud Office.
What is your companies gift policy?
- 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).
What is your companies entertainment policy?
- 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.
What is your companies entertainment policy?
- 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.
What is Money Laundering?
When the proceeds of criminal activities are disguised or converted and then realised as legitimate assets.
What are the Key Provisions of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, amended 2019?
- 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.
What are an Estate Agents Legal obligations for AML?
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.
When would firms scrutinise transactions?
If they are:
- Complex
- Unusually large
- Part of an unusual pattern of transactions
- Without apparent economic or legal purpose
What is CDD for an individual?
- 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.
What is CDD for a PLC?
London Stock Exchange listing
What is CDD for a publicly accountable body?
Establish the government ownership or control
what is the CDD for a Private Limited Company?
- 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)
What is a PEP?
A politically exposed person - someone who has been entrusted with a prominent public function
Why does a PEP need EDD?
Due to the position and influence they hold, there presents a higher risk for potential involvement in bribery and corruption.
When are EDD needed?
Additional procedures are needed for any transaction or business relationship involving a person who:
- Is a PEP
- is in a high risk third country
What are EDD?
Additional procedures requiring additional evidence and monitoring and a more detailed examination of the background and purpose of the transaction.
How long should firms hold AML data?
5 years - companies should also report any discrepancies between the information on their customers compared to the information on companies house.
What are the penalties for non- compliance with the Money Laundering, terrorist financing and transfer of funds regulations?
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.
What are the Money Laundering ‘RED FLAGS’
- 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
Who reports to the national crime agency and how?
The money laundering reporting officer must be appointed to raise a Suspicious activity report (SAR) to national crime agency
