ACCA F4 - Corp and Business Law (ENG)

348 22: Fraudulent and criminal behaviour  Part H Governance and ethical issues relating to business

These include:

(a) Internal reporting procedures

These should include appointing a Money Laundering Reporting Officer (MLRO) to receive internal

reports of suspected money laundering and, where appropriate, to report them to the NCA.

(b) Customer due diligence measures

These should include identifying and verifying customers and monitoring the business relationship

according to the level of risk of money laundering.

(c) Record-keeping procedures

Such procedures may include, for example, retaining copies of customer identity details such as

passports. These procedures are important in proving compliance with the regulations.

(d) Ensuring that employees are educated

Employees should receive appropriate training concerning the law relating to money laundering

and the business's policies and procedures in dealing with it.

Should a business fail to implement these measures a criminal offence, punishable with a maximum

sentence of two years' imprisonment and/or an unlimited fine, is committed irrespective of whether

money laundering has taken place. Civil penalties may also be imposed.

You must be clear of how these rules seek to prevent or minimise money laundering.

5 Bribery

Bribery is a serious offence which often relates to the offering and receiving of gifts or hospitality.

The Bribery Act 2010 came into effect in July 2011. The Act brought together, and is intended to simplify,

the previous law on bribery and corruption which was contained in both common law and statute.

5.1 Bribery offences

The Bribery Act created four main offences, the first three of which are committed by individuals while

the fourth is a corporate offence. The offences are:

 Bribing another person

 Being bribed

 Bribing a foreign public official

 Corporate failure to prevent bribery

5.1.1 Bribing another person

This offence is committed where a person offers, promises or gives financial or other advantages to

another person with the intention of inducing that person to perform improperly a relevant function or

activity, or to reward them for such improper performance.

It does not matter whether or not the person being bribed is the same person as the one who would

usually perform the function or whether the offer is made directly or via a third party. This offence can

also be committed where acceptance of an advantage itself constitutes improper performance of a

function or activity.

5.1.2 Being bribed

This offence committed where a person requests or accepts a financial or other advantage improperly,

or as a reward for improper performance of a relevant function or activity, or intending that improper

performance should result. It does not matter whether the advantage is received direct or through a third

party. The offence also applies if a person receives a benefit on behalf of another person.

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