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.
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
objective of the statement is for proactive steps to be taken by the property
profession to strengthen standards, going beyond minimum legislative and
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.
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.
statement contains extensive guidance and supplementary guidance.
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.”
further information please contact Philip Eyre.