Definition

The Bribery Act 2010 is the principal UK anti-corruption statute. It criminalises offering, promising, giving, requesting or accepting a financial or other advantage intended to induce improper performance of a relevant function. It applies to UK nationals and UK-incorporated bodies worldwide and to any foreign body that carries on business in the UK. For anti-money laundering (AML), the primary framework is the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2017 (as amended), requiring customer due diligence, suspicious activity reporting and record-keeping.

Why this matters for Ethics, Rules of Conduct & Professionalism

  • Criminal exposure: individuals face up to 10 years' imprisonment and an unlimited fine under the Bribery Act; firms face unlimited fines and debarment from public procurement.
  • RICS disciplinary risk: a conviction or regulatory finding almost always triggers referral to RICS Regulation and may result in expulsion.
  • Mandatory compliance: regulated firms must have an AML compliance officer, risk assessment, written policies, staff training and client due diligence procedures.
  • Both regimes engage Rule 1 (Honesty and Integrity) and Rule 5 (Responsibility) of the RICS Rules of Conduct.

Key principles

The four Bribery Act offences

Section 1 prohibits bribing another person. Section 2 prohibits being bribed. Section 6 is a standalone offence of bribing a foreign public official: no proof of improper conduct is required, making facilitation payments illegal regardless of local custom. Section 7 is the strict-liability corporate offence: a firm is guilty if an associated person bribes on its behalf, unless the firm proves it had adequate procedures.

Adequate procedures under Section 7

The only defence to a Section 7 charge is that the organisation had adequate procedures. The Ministry of Justice guidance sets out six principles: proportionate procedures; top-level commitment; risk assessment; due diligence on associated persons; communication and training; and monitoring and review.

Anti-money laundering obligations

Property transactions are a well-known vehicle for money laundering. Under the Money Laundering Regulations 2017, regulated firms must carry out customer due diligence (CDD) before establishing a business relationship. Enhanced due diligence is required for higher-risk clients, including politically exposed persons. Where a suspicion arises, the nominated officer must be notified; a Suspicious Activity Report (SAR) must be submitted to the National Crime Agency under the Proceeds of Crime Act 2002. Tipping off the client is itself a criminal offence.

Gifts and hospitality

Corporate hospitality is not automatically prohibited, but the test is whether a reasonable observer would conclude it was intended to influence professional judgement. Timing and value are critical: entertainment offered by a contractor before a tender decision should be declined and logged. Most firms set a monetary threshold (commonly £50–£100) above which prior approval and registration are required.

Relevant RICS guidance and legislation

  • Bribery Act 2010 — four offences; maximum 10 years' imprisonment for individuals.
  • Ministry of Justice Guidance: The Bribery Act 2010 — sets out the six adequate procedures principles.
  • Proceeds of Crime Act 2002 — criminalises money laundering; requires SARs to the National Crime Agency.
  • Money Laundering Regulations 2017 (as amended) — requires CDD, enhanced due diligence and AML policies.
  • RICS Rules of Conduct (effective 2 February 2022) — Rule 1 (Honesty and Integrity) and Rule 5 (Responsibility).
  • RICS professional statement: Countering bribery and corruption, money laundering and terrorist financing — mandatory for all RICS members and regulated firms.

Ethics and Rules of Conduct angle

Rule 1 (Honesty and Integrity) requires members to be honest and comply with all professional obligations. Accepting a bribe or failing to report a money laundering suspicion strikes at the heart of this rule. Rule 5 (Responsibility) requires members to act in the public interest: both are undermined by bribery or money laundering complicity. A member who is convicted or fails to report faces criminal prosecution and RICS disciplinary action, including possible expulsion.

APC-style Q&As

Q (Level 1)What are the four offences created by the Bribery Act 2010?

Section 1: bribing another person. Section 2: being bribed. Section 6: bribing a foreign public official. Section 7: the corporate offence of failing to prevent bribery. Maximum penalty for an individual is 10 years' imprisonment.

Q (Level 1)What does customer due diligence (CDD) require under the Money Laundering Regulations 2017?

CDD requires verifying the identity of the client and any beneficial owner, and understanding the nature and purpose of the business relationship. It must be completed before establishing a business relationship.

Q (Level 2)What are the six "adequate procedures" principles that provide a defence to a Section 7 Bribery Act charge?

Proportionate procedures; top-level commitment; risk assessment; due diligence on associated persons; communication and training; and monitoring and review. A firm must be able to demonstrate all six were genuinely embedded — not just written down — to rely on the defence successfully.

Q (Level 2)How does your firm handle a suspicious activity in relation to a client's property purchase?

(example) A client was paying a large deposit in cash with no explanation of source of funds. I did not discuss my concerns with the client but immediately reported to the firm's nominated Money Laundering Reporting Officer, who submitted a Suspicious Activity Report to the National Crime Agency and sought a defence against money laundering consent before we proceeded. I did not inform the client, as tipping off is a criminal offence under the Proceeds of Crime Act 2002.

Q (Level 3)A foreign developer instructs your firm to value a portfolio of properties and mentions that a small payment to a local planning official would "smooth things along". What do you do and why?

I decline immediately: such a payment is a criminal offence under Section 6 of the Bribery Act 2010 irrespective of local custom. I document the conversation, report to my line manager and the firm's MLRO, and consider whether the instruction raises money laundering concerns requiring a SAR. I would also consider whether the firm can continue acting for this client at all, given the conduct.