Bribery & AML

Question 1

What is a bribe?

Answer 1

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 2

What is the key piece of legislation in relation to bribery?

Answer 2

Bribery Act 2010

Question 3

What are the four prime offences under the Bribery Act?

Answer 3

bribing

receiving a bribe

bribing a foreign official

failure to prevent bribery

Question 4

What is the government guidance on hospitality?

Answer 4

Lavish corporate entertainment can be classified as a bribe. It is not prohibited so long as it is reasonable, proportionate and accurately recorded in a gift register.

Question 5

What is the penalty for bribery?

Answer 5

10 years in prison and/or and unlimited fine.

Question 6

What is the key piece of legislation in relation to AML?

Answer 6

Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2012

Question 7

What is money laundering?

Answer 7

Money laundering is when proceeds of criminal activities are disguised or converted and then realised as legitimate assets.

Question 8

What are the key provisions of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations?

Answer 8

A written money money laundering and terrorist financing risk assessment

Implement systems, policies and controls

provide staff training

comply with new customer due diligence

comply with requirements relating to politically exposed persons

Ensure appropriate record keeping

AML check to be undertaken to identify the purchaser

A senior member of staff must be appoint to take responsibility for compliance.

A nominated Money Laundering Reporting Officer must be appointed to report to the National Crime Agency if required

10,000 euros cash limit

Question 9

What are the AML checks at your firm?

Answer 9

The compliance director is responsible for monitoring and policies (Money Laundering Reporting Officer).

The due diligence checks for AML include:

• Client due diligence: identifying all parties involved in the transaction including the corporate structure.
• source of funds: if funds coming from a party other than the purchaser that party must have full checks undertaken
• counterparty: the entity on the opposite site of the transaction. Not our client but must be satisfied there is a minimum of risk.

Question 10

What are the level of due diligence?

Answer 10

Customer due diligence

• verify the clients identity using a passport or drivers licence
• make reasonable endeavours to identify the beneficial owners of the client
• names of directors required
• obtain information on the purpose and intended nature of the business relationship and proposed funding arrangements

Enhance due diligence
- additional procedures or a business relationship involving a person established in a high risk country or a politically exposed person (PEP)

Question 11

What are red flags around money laundering?

Answer 11

Inability or unwillingness to provide identity documents

changes of a parties involvement in transactions

unusual transaction features, such as unexpected urgency required by parties or loss making transactions

payment of fees, purchase or rental in an unusual manner.

Question 12

What are red flags around money laundering and what should you do if you suspect it?

Answer 12

Inability or unwillingness to provide identity documents

changes of a parties involvement in transactions

unusual transaction features, such as unexpected urgency required by parties or loss making transactions

payment of fees, purchase or rental in an unusual manner.

Reporting: Where there is a suspicion of money laundering it is important that this is reported this to the Nominated Officer or Deputy Nominated Officer immediately without discussing the details with your clients or your colleagues.

Training: All staff are provided with training when they join the company.

Question 13

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

Answer 13

Concealing criminal property

Arrangements: entering into an arrangement which they know or suspect facilitates the use of criminal property

Acquisition and use: if a person acquires or had control of criminal property

Question 14

What guidance on bribery and AML is offered by the RICS?

Answer 14

Countering bribery and corruption, money laundering and terrorist financing, 1st ed. Professional Statement

Question 15

What is covered by Countering Bribery and Corruption, Money Laundering and Terrorist Financing, 1st ed.?

Answer 15

Mandatory requirements for anti-bribery, corruption and money laundering

Guidance setting out good practice

supplementary guidance

Question 16

What must an RICS firm do to comply with the guidance on bribery?

Answer 16

Not accept anything that would constitute a bribe

have procedures in place to comply with the law

report suspicious activity to the authorities

retain records to evidence compliance

Question 17

What must an RICS firm do to comply with the guidance on AML?

Answer 17

Not facilitate or be complicit in money laundering and terrorist financing

have systems and training in place to comply with these laws

report suspicions

evaluated the risk of business relationships

take appropriate measures to understand the client and the purpose of the transaction

verify the identity of the client

retain records to evidence compliance.

Question 18

What should be included in a gifts register?

Answer 18

Gifts

Hospitality

entertainment and expenses

customer travel and hospitality

political contributions

charitable donations and sponsorships

Question 19

What should RICS members do in relation to bribery and AML?

Answer 19

declare gifts to their employer

attend training

keep up to date with legislation

comply with their employers policies and processes

Question 20

How do you take a risk based approach?

Answer 20

3 ‘w’s

Who you act for
What you are doing
Why you are being asked to do something

Question 21

What is your firms gifts and entertainment policy?

Answer 21

Ask yourself “Would I be comfortable accepting or giving a gift or entertainment if this was brought to the attention of Avison Young UK Executive and the public?

We have a decision reporting and approval process. if an amount is below the reporting threshold is does not need to be reported, it is above the reporting threshold we must notify compliance for record keeping. If it is above the pre-authorisation threshold then a gifts and entertainment form must be completed and submitted to a line manager for approval, who then forwards this to compliance for record keeping.

Question 22

What is your firms gifts and entertainment policy?

Answer 22

Consider: “Would I be comfortable accepting or giving a gift or entertainment if this was brought to the attention of Avison Young UK Executive and the public?

We have a decision reporting and approval process. If an amount is below the reporting threshold is does not need to be reported, it is above the reporting threshold we must notify compliance for record keeping. If it is above the pre-authorisation threshold then a gifts and entertainment form must be completed and submitted to a line manager for approval, who then forwards this to compliance for record keeping.

Question 23

Under AY’s policy, when it entertainment allowed and not allowed?

Answer 23

Allowed

• when host is present
• in the normal course of business
• purpose is to develop a business relationship
• openly offers and not solicited

Not allowed

• if is may be considered offensive
• where the is an expectation of reciprocity

Question 24

What is the difference between a gift and a bribe?

Answer 24

A gift is a small gesture, a bribe is given with the expectation of reciprocity in some form.

Question 25

What should you consider when deciding whether to accept a bribe or hospitality?

Answer 25

Timing

Reciprocity

Proportionality