RICS steps up regulation for money laundering, bribery and corruption with major new professional statement
Property professionals are a crucial line of defence against criminals who seek to launder money in the UK before reinvesting it in serious and organised crime. Their crimes have no boundaries and can range from drug importation to human trafficking and terrorism.
The RICS has published a major new professional statement to help property professionals identify and manage the risks. The professional statement was published in February 2019 and is titled “RICS Countering bribery, corruption, money laundering and terrorist financing”. The statement will become effective for RICS members and firms regulated by the RICS from 1 September 2019. The professional statement can be accessed by clicking here.
The objective of the statement is for proactive steps to be taken by the property profession to strengthen standards, going beyond minimum legislative and regulatory requirements.
RICS regulated firms must adhere to five separate requirements in relation to bribery and corruption including having plans in place to comply with applicable laws, acting with due diligence to perform periodic written evaluations of risk and retaining information detailing how the firm has met with the requirements of the professional statement. RICS members must adhere to three separate requirements in relation to bribery and corruption including ensuring they have adequate knowledge of bribery and corruption.
RICS regulated firms must adhere to nine separate requirements in relation to money laundering and terrorist financing including having systems and training in place to comply with laws and to record and retain information detailing how the firm has met the requirements of the professional statement. RICS members must adhere to two separate requirements in relation to money laundering and terrorist financing including reporting any suspicions of money laundering or terrorist financing activities.
The statement contains extensive guidance and supplementary guidance.
Glovers’ construction partner Philip Eyre (who is a dual-qualified solicitor and RICS member) comments “It is estimated that around £4.4bn of criminal proceeds are invested in the UK economy, much of this in property. The RICS statement emphasises that continuous work is required because combatting criminals goes beyond simply checking ID and minimum compliance with laws. It is crucial that RICS members and firms regulated by the RICS become intimately familiar with the contents of this professional statement well in advance of 1 September 2019.”
For further information please contact Philip Eyre.