What is the Bribery Act 2010?
UK legislation making bribery and corruption illegal.
What activities does the Bribery Act prohibit?
Offering/giving a bribe, requesting/receiving a bribe, bribing a public official, and failing to report or prevent bribery.
Who does the Bribery Act apply to?
Individuals, companies, and organisations conducting business in the UK, including overseas conduct by UK nationals.
Are gifts and hospitality always illegal under the Bribery Act?
No — reasonable, proportionate, and transparent gifts or hospitality are generally acceptable business practice.
What are examples of acceptable hospitality?
Modest and occasional meals, sport or cultural events; must not be lavish or frequent.
What are examples of acceptable gifts?
Nominal value, offered openly, must not be regular, cash, or intended to influence decisions.
What records should be kept for gifts or hospitality?
Keep a gift register for gifts over £100 and record hospitality appropriately.
What penalties can result from bribery offences?
Unlimited fines, prosecution, and imprisonment of up to 10 years.
What does “Reasonableness” mean in gifts/hospitality?
Gifts and hospitality should be modest, appropriate, and aligned with normal business practices.
What does “Transparency” mean?
Be open about gifts or hospitality given/received and maintain clear records to avoid suspicion.
What does “Proportionality” mean?
Value and frequency of gifts should match the business relationship and not create obligation or influence.
What does “Timing” mean?
Avoid gifts or hospitality around sensitive times, like contract awards or regulatory decisions, to prevent perceived impropriety.
What does “Integrity and Compliance” mean?
Follow organisational policies and the law; seek advice if unsure to avoid conflicts of interest.
Which legislation governs money laundering in the UK?
The Proceeds of Crime Act 2002 and the Money Laundering Regulations 2017.
What is the purpose of the Proceeds of Crime Act 2002?
It creates the criminal offences for dealing with the proceeds of crime and sets out reporting obligations.
What is the purpose of the Money Laundering Regulations 2017?
They require firms to carry out customer due diligence, risk assessments, ongoing monitoring, training and record keeping.
What are the three money laundering offences under the Proceeds of Crime Act 2002?
Concealing criminal property, arranging or facilitating the movement of criminal property, and acquiring, using or possessing criminal property.
What is criminal property?
Money or assets that represent a benefit from criminal conduct.
What is Customer Due Diligence (CDD)?
Verifying the client’s identity, identifying the beneficial owner, and understanding the source of funds before starting work.
When must Customer Due Diligence be carried out?
Before establishing a business relationship or carrying out a transaction.
What is a beneficial owner?
The individual who ultimately owns or controls a company, usually someone with more than 25% ownership or voting rights.
What is meant by a risk-based approach?
Applying enhanced checks to higher-risk clients or transactions and simplified checks to lower-risk ones.
What is Enhanced Due Diligence (EDD)?
Additional checks for high-risk clients, including verifying source of wealth and obtaining senior management approval.
When is Enhanced Due Diligence required?
For politically exposed persons, high-risk countries, complex company structures, unusual transactions or third-party funding.
