Bribery, Gifts, Anti-Money Laundering and Sanctions

What is a bribe?

Giving offering or receiving an advantage of any value such as payment gift or service with the intention of influencing someone improperly

What legislation criminalises bribery in the UK?

Bribery Act 2010

What is the aim of the Bribery Act 2010?

To reduce bribery and corruption and make it a criminal offence

What are the four offences under the Bribery Act 2010?

Bribing another person

What is the second offence under the Bribery Act 2010?

Receiving a bribe

What is the third offence under the Bribery Act 2010?

Bribing a foreign public official

What is the fourth offence under the Bribery Act 2010?

Failing to prevent bribery within an organisation

What related financial crimes are often linked to bribery?

Corruption money laundering terrorist financing and sanctions breaches

What RICS professional statement addresses bribery corruption money laundering and terrorist financing?

RICS Professional Statement Countering Bribery and Corruption Money Laundering and Terrorist Financing 2019

What three categories does the RICS professional statement include?

Good practice mandatory requirements and supplementary requirements

What is the first principle of the Bribery Act 2010?

Proportionate procedures

What does proportionate procedures mean?

Procedures to prevent bribery should be proportionate to the risks faced and the size and nature of the firm

What is the second principle of the Bribery Act?

Top level commitment

What does top level commitment require?

Senior management must demonstrate commitment to preventing bribery

What cultural behaviour should senior management promote regarding bribery?

A culture where bribery is never acceptable

What reporting mechanism may be encouraged under top level commitment?

Whistleblowing

What is the third principle of the Bribery Act?

Risk assessment

What is the purpose of risk assessment under bribery procedures?

To identify evaluate and understand bribery risks faced by the organisation

What factors are assessed during bribery risk assessments?

Likelihood and impact of potential bribery risks

What is the fourth principle of the Bribery Act?

Due diligence

What does due diligence involve under the Bribery Act?

Initial and ongoing checks on business relationships and operations

What must due diligence consider?

The level of bribery risk associated with the relationship

What is the fifth principle of the Bribery Act?

Communication

What does communication involve regarding anti bribery?

Communicating policies procedures and anti bribery stance to staff and stakeholders

What is the sixth principle of the Bribery Act?

Monitoring and review

What does monitoring and review involve?

Regular review of anti bribery procedures and making improvements where necessary

What is the maximum penalty for bribery offences?

Unlimited fine or up to 10 years imprisonment

Which authority enforces the Bribery Act?

Serious Fraud Office

What is the maximum penalty for money laundering offences?

Unlimited fine or up to 14 years imprisonment

Who is responsible for employees committing bribery within a company?

The company unless adequate procedures were in place

What procedures help prevent bribery within organisations?

Staff training clear policies regular reviews and identifying bribery risks

What must RICS firms not do regarding bribery?

Not offer or accept anything that could be considered a bribe

What procedures must RICS firms have regarding bribery?

Procedures to ensure compliance with anti bribery law

What records must RICS firms maintain regarding bribery?

Records demonstrating zero tolerance to bribery

What reporting obligation exists regarding bribery?

Suspicious behaviour must be reported to authorities

What due diligence requirement exists regarding bribery risk?

Periodic evaluation of bribery risks faced by the firm

What factors should be considered before accepting gifts hospitality or cash?

Bribery Act 2010 and RICS Professional Statement

What internal process may be required before accepting gifts?

Consult the compliance officer or legal department

Where should gifts hospitality or cash be recorded?

Gift register

What professional values should guide accepting hospitality?

Professional objectivity transparency and openness

What is money laundering?

Disguising illegal funds as legitimate business transactions

What regulation governs money laundering for estate agency and financial business?

Money Laundering Terrorist Financing and Transfer of Funds Regulations 2017

When were these regulations amended?

2022

What activities do these regulations cover?

Estate agency work and relevant financial business inside and outside the UK

What suspicious indicators may suggest money laundering?

Cash payments or payments in unusual currencies

What other suspicious behaviour may indicate money laundering?

Unusually complex transactions

What other suspicious behaviour may indicate money laundering?

Unusual transaction patterns

What other suspicious behaviour may indicate money laundering?

Transactions with no apparent legal or economic purpose

What must firms have under money laundering regulations?

Written risk assessment

What systems must firms implement regarding AML?

Policies systems and controls to address money laundering risk

What internal governance requirement exists for AML?

Appropriate internal controls

What staff management requirement exists under AML regulations?

Staff training

What due diligence procedures must firms comply with?

Customer due diligence enhanced due diligence and simplified due diligence

What politically exposed persons requirement exists?

Policies must address Politically Exposed Persons

What record keeping requirement exists for AML?

Maintain appropriate records

What identity verification requirement exists for AML?

Confirm the identity of purchasers

What geographic risk factor must be considered?

High risk third countries

What is the maximum penalty for AML offences?

Unlimited fine or up to 14 years imprisonment

What is the penalty for tipping off someone under AML investigation?

Unlimited fine or up to 5 years imprisonment

What is Customer Due Diligence?

Process of verifying identity and understanding the nature of the business relationship

What identification documents may be used for identity verification?

Passport or driving licence

What proof of address documents may be used?

Bank statement credit card bill council tax or utility bill

What timeframe should proof of address typically cover?

Within the last 3 months

What company information must be verified during CDD?

Registered office and directors

What ownership information must be checked?

Beneficial owners with significant control

What register can confirm company ownership?

Companies House

What relationship information must be obtained during CDD?

Purpose and intended nature of the business relationship

What is Enhanced Due Diligence?

Additional checks for high risk transactions or politically exposed persons

What situations require Enhanced Due Diligence?

High risk third country involvement

What political factor may require Enhanced Due Diligence?

Politically Exposed Person involvement

What additional monitoring occurs under Enhanced Due Diligence?

Detailed review of transaction background and purpose

What tool may help identify potential money laundering?

RICS Red Flag Indicators

What are Red Flag Indicators?

Questions used to identify potential money laundering risk

What behaviour may indicate money laundering risk?

Refusal to provide identity documents

What transaction behaviour may indicate risk?

Changes to parties in a transaction

What unusual transaction patterns may raise suspicion?

Loss making deals or unexpected urgency

What payment behaviour may indicate money laundering?

Payment in unusual currency

What should you do if suspicious of money laundering?

Decline instruction

Who should suspicions be reported to internally?

Compliance officer

Which authority receives suspicious activity reports?

National Crime Agency

Should the suspected party be informed?

No this would be tipping off

What document is submitted to the National Crime Agency?

Suspicious Activity Report

What documents confirm identity for a private limited company?

Certificate of incorporation company name registered number registered office and director details

What ownership threshold must be checked for company owners?

Shareholding above 25 percent

What must discrepancies with company records be reported to?

Companies House

What identification is required for private individuals?

Passport or driving licence

What address verification may be required for individuals?

Utility bill bank statement or council tax bill

What sanctions list should be checked during AML screening?

HM Treasury Consolidated Sanctions List

What should you do if a client appears on a sanctions list?

Contact the Office of Financial Sanctions Implementation

What is the abbreviation OFSI?

Office of Financial Sanctions Implementation

What cash limit applies when accepting cash payments?

€10000

What monitoring obligation exists during client relationships?

Maintain detailed records and ongoing monitoring

Who must take responsibility for AML compliance within firms?

Senior staff member as Compliance Officer

Who reports money laundering suspicions internally?

Money Laundering Reporting Officer

How long must AML records be retained?

Minimum 5 years

What legislation allows authorities to recover criminal assets?

Proceeds of Crime Act 2002

What is the first offence under the Proceeds of Crime Act?

Concealing criminal property

What is the second offence under POCA?

Arrangements involving criminal property

What is the third offence under POCA?

Acquisition use or possession of criminal property

What must RICS firms not do regarding money laundering?

Not facilitate or be complicit in money laundering or terrorist financing