CII R01 Financial Crime Prevention 4

Question 1

What is the Bribery Act 2010?

Accepted Answer

UK legislation creating offences of bribing, being bribed, and the corporate offence of failing to prevent bribery

Answer

The Bribery Act 2010 created offences of bribing another person, being bribed, bribing a foreign public official, and the corporate offence of failing to prevent bribery. It is one of the strictest anti-bribery laws in the world.

Question 2

What defence is available to a commercial organisation charged with failing to prevent bribery?

Accepted Answer

That it had adequate procedures in place to prevent bribery

Answer

Under section 7 of the Bribery Act 2010, a commercial organisation has a defence if it can show that it had adequate procedures in place designed to prevent persons associated with it from committing bribery.

Question 3

What is 'fraud by false representation' under the Fraud Act 2006?

Accepted Answer

Dishonestly making a false representation intending to make a gain or cause a loss

Answer

Under section 2 of the Fraud Act 2006, fraud by false representation occurs when a person dishonestly makes a representation that is untrue or misleading, with the intention of making a gain for themselves or causing loss to another.

Question 4

What is 'market abuse' under the UK Market Abuse Regulation?

Accepted Answer

Behaviour including insider dealing, unlawful disclosure of inside information, and market manipulation

Answer

UK MAR defines market abuse as including insider dealing, unlawful disclosure of inside information, and market manipulation. These behaviours undermine market integrity and investor confidence.

Question 5

What is 'insider dealing' under the Criminal Justice Act 1993?

Accepted Answer

Dealing in securities while in possession of inside information that would affect their price

Answer

Insider dealing is a criminal offence involving dealing in price-affected securities while in possession of inside information, or encouraging another to deal, or disclosing inside information otherwise than in the proper performance of employment.

CII R01 Practice Test

CII R01 Practice Test

CII R01 Financial Crime Prevention 4