Conflict of Interest & Money Laundering Flashcards
What is a conflict of interest?
Multiple interests which could affect their motivation
What to do if a conflict occurs?
Make client and parties aware of the potential conflict of interest immediately.
What is a Information Barrier?
An ethical barrier that prevents communication between parties where a conflict of interest may exist.
What is an example of a conflict of interest?
Family member working for a contractor when tendering works for your client
Tell me about a time you have come across a conflict of interest?
Within my company there are multiple disciplines who may bid for the same project. There are clear rules set around no information sharing to` improve chances of bidding
How many types of conflict of interest are there?
Party conflict
Own interest
Confidential information conflict
What is money laundering?
Concealing the source of the proceeds of criminal activity to disguise their illegal origin
What is a party conflict? Provide an example?
Where duties or interests are conflicted by a party in relation to the assignment
Client 1 is selling a site
Client 2 is buying the site
What is own interest conflict?
The duty or act is conflicted by a persons own interests
Client asks to provide advice on a dispute of your company
What is confidential information conflict?
Conflict between providing info to one client that is confidential to another client
What could be a sign of money laundering?
Hiding, transferring or recycling money through one or more transactions
What is informed consent and when are they required?
Where a party may be affected by a conflict but instructs the party to carry out the work
Clients must issue an informed consent
How does the RICS deal with conflicts of interest?
Mandatory to follow guidance of the RICS in line with the edition published in 2017 :
Conflicts and confidential info
Supporting commentary notes and guidance
How would you assess if there may be a conflict of interest?
Review the professional on conflicts
Speak with director to ensure there are no conflicts
Can you tell me what is in the Conflict of Interest (1st Edition guidance note?
Professional Statement on
Conflicts (types, barriers)
Confidentiality
Informed consent
