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ANNA - RICS Spring 2024 Revision > Ethics P2 - Professionalism (Bribery, AML, Negligence) > Flashcards

Ethics P2 - Professionalism (Bribery, AML, Negligence) Flashcards

1
Q

Do you know any legislation in relation to bribing?

A

Bribery Act 2010

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2
Q

What is the aim of the Bribery Act?

A

To reduce bribery in business in the UK and abroad

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3
Q

PTRDCM

What are the 6 principles of the Bribery Act?

A
  1. Proportionality
  2. Top level commitment
  3. Risk Assessment
  4. Due Diligence
  5. Communication
  6. Monitoring and Review
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4
Q

What are the offences of Bribery?

A
  1. Bribing
  2. Receiving a bribe
  3. Bribing a foreign public official
  4. Failing to prevent a bribe
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5
Q

Is the offering of hospitality a bribe?

A

No - if it is reasonable and proportionate hospitality AS LONG AS it is accurately recorded

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6
Q

What steps do your company take to avoid bribery?

A
  • Identify potential risks
  • Staff Training
  • Provision of clear policies
  • Regular Reviews
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7
Q

Who polices the Bribery Act?

A

Serious Fraud Office

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8
Q

What are the penalties to a breach of the bribery act?

A
  • Max 10 years in prison (for individuals)
  • and/or unlimited fine (for individuals and companies)
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9
Q

Are you aware of any guidance on Money Laudering?

A

Money Laundering, Terrorist Financing and Transfer of Funds 2017 - as amended 2019

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10
Q

What is the definition of Money Laundering?

A

When proceeds of criminal activity are disguised or converted and then realised as legitimate assets

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11
Q

What does the Money Laundering, Terrorist Financing and Transfer of Funds cover?

A

Estate Agency work and relevant financial business work in the UK

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12
Q

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

A
  • Conduct a written money laundering and terrorist finance risk assessment for the firm
  • Implement systems, policies and controls and procedures to address ML and TF risks
  • Adopt appropriate internal controls
  • Provide staff training
  • Comply with DD requirements
  • Comply with legislation relating to PePs
  • Ensure appropriate record keeping
  • Undertake AMLs
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13
Q

What are the levels of due diligence for AML?

A
  1. Simplified
  2. Customer
  3. Enhanced
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14
Q

What process do you take for customer due diligence?

A

Identify and verify the client and their address
Purpose and nature of business

If a company - company details and the above of any person with significant control.

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15
Q

What process do you take for enhanced due diligence?

A

More detailed examination of the background and purpose of the transaction and increased level of monitoring is needed.

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16
Q

What are the penalties to assisting with Money Laundering?

A

Max 14 years prison and/or unlimited fine

17
Q

What are the penalties for tipping someone off that they are under suspicion for Money Laundering or failing to report suspicion?

A

Max 5 years prison and/or unlimited fine

18
Q

Are you aware of any RICS guidance in relation to Bribery?

A

RICS Professional Statement on Countering Bribery, corruption, money laundering and terrorist financing 2019

19
Q

What does the RICS Professional Statement on Countering Bribery, corruption, money laundering and terrorist financing 2019 set out?

A

Mandatory globally applicable requirements for RICS members and regulated firms in relation to bribery, corruption, money laundering and terrorist financing. Effective from September 2019.

20
Q

What are the mandatory requirements fir RICS firms under the Professional Statement regarding Bribery?

A
  • Not offer or accept anything that constitutes a bribe
  • Have procedures in place to comply with the law
  • Report suspicious activity
  • Act with due diligence to perform written evaluations
  • Retain records
21
Q

What are the mandatory requirements fir RICS firms under the Professional Statement regarding AML?

A
  • Not facilitate or be complicit in ML or TF
  • Have systems in place to comply with the laws
  • Report suspicion
  • Evaluate and Review the risks presented to the firm
  • Used third party reliance checks
  • Appropriate understanding of the purpose of transaction
  • Verify client ID
  • Retain records
22
Q

What is the definition of Negligence?

A

A duty of care exists to clients and third parties, using a ‘reasonable care and skill’. When breached, and there is a loss, a claim for damages arise.

23
Q

What is the allowed margin of error in a valuation?

A

The principle of 10% is used. This may be +-5% for straight forward properties and +-10% if there are exceptional features.

24
Q

How long does a third party have to claim negligence?

A

6 years
OR 3 years after knowledge with a long stop date of 15 years

25
Q

How can you avoid negligence claims?

A
  • Clearly understand the clients objectives
  • Confirm precise instructions and scope of work in writing
  • Ensure competence
  • Undertake the work in accordance to RICS guidance
  • Keep detailed records
  • Keep up to date with market knowledge
  • Cap PII on TofE

ANNA - RICS Spring 2024 Revision (29 decks)

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