ICG AC (CGCAT) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Bribery definition

Offering, promising, giving, requesting, or accepting an undue advantage to induce improper performance of a function or breach of trust, whether in the public or private sector.

Facilitation payment

A small payment to a low-level official to expedite routine, non-discretionary government action the payer is already entitled to receive, such as a permit or customs clearance.

Kickback

A secret return of part of a contract payment to the person who influenced the award, typically concealed through false invoices or inflated prices.

Active vs passive bribery

Active bribery is offering or giving the undue advantage; passive bribery is requesting or accepting it. Both sides are criminalised under UNCAC and the UK Bribery Act.

Undue advantage

Any benefit, financial or non-financial, that the recipient is not lawfully entitled to, including cash, shares, jobs, travel, scholarships, and sponsorship.

FCPA anti-bribery scope

Applies to U.S. issuers, domestic concerns, and any person acting in U.S. territory who corruptly offers or gives anything of value to a foreign official to obtain or retain business.

FCPA accounting provisions

Require issuers to keep accurate books and records and maintain internal accounting controls, regardless of whether any bribe was actually paid.

UK Bribery Act section 7

Creates a strict-liability corporate offence of failing to prevent bribery by associated persons; the only defence is showing adequate procedures were in place.

Adequate procedures principles

Six UK Ministry of Justice principles: proportionality, top-level commitment, risk assessment, due diligence, communication and training, and monitoring and review.

OECD Anti-Bribery Convention

1997 treaty requiring signatories to criminalise bribery of foreign public officials in international business transactions, monitored through peer reviews by the OECD Working Group.

UNCAC scope

The 2003 UN Convention against Corruption is the only legally binding universal anti-corruption instrument, covering prevention, criminalisation, asset recovery, and international cooperation.

Grease payment exception

FCPA exception permitting payments to expedite routine governmental action; it does not exist under the UK Bribery Act, which prohibits all facilitation payments.

Routine governmental action

Non-discretionary acts such as issuing permits, licences, visas, and processing customs or police protection; it excludes decisions to award or renew business.

Third-party risk tiering

Combining country risk, sector risk, government interaction, and payment structure into low, medium, or high ratings that determine the depth of due diligence required.

Enhanced due diligence triggers

State-owned counterparties, PEP connections, opaque ownership, offshore payments, unusually high commissions, and refusal to accept anti-bribery clauses.

Beneficial ownership check

Identifying the natural persons who ultimately own or control a counterparty, typically at a 25% threshold, and screening them against sanctions and PEP lists.

Continuous due diligence

Ongoing screening of third parties triggered by contract renewal, ownership changes, adverse media, or sanctions updates, rather than a one-time onboarding check.

Agent commission benchmarking

Comparing proposed intermediary fees against market norms; unexplained premiums above typical ranges require escalation and documented justification.

Compliance governance structure

Board-level oversight through an audit or compliance committee, an independent compliance officer with direct reporting lines, and defined accountability across business units.

Role-based training

Compliance training tailored in depth and frequency to risk exposure, with more intensive programmes for sales, procurement, government-facing, and third-party-management staff.

Programme monitoring metrics

Quantitative indicators such as third parties screened, gifts approved or declined, whistleblowing reports received, investigations opened and closed, and training completion rates.

Gifts and hospitality test

Gifts and hospitality are permissible only if reasonable, openly given, for a legitimate business purpose, and not intended or perceived to improperly influence a decision.

Conflict of interest

A personal interest that could improperly influence professional judgement; it must be disclosed, recorded, and managed through recusal, divestment, or reassignment.

Gift red flags

Gifts or hospitality timed around contract awards, given to officials with decision authority, undisclosed family links to suppliers, or travel disproportionate to business need.

Segregation of duties

Separating initiation, approval, recording, and reconciliation of transactions so that no single person can both commit and conceal a fraudulent or corrupt payment.

Books and records red flags

Round-number payments, unexplained consulting fees, offshore accounts, duplicate invoices, and unusual journal entries near period end that may conceal improper payments.

Investigation legal hold

A directive requiring preservation of documents and data relevant to an investigation, issued promptly to prevent destruction and support privilege and cooperation.

Whistleblowing channel design

Confidential, accessible, non-retaliatory reporting mechanisms available to employees and third parties, meeting minimum standards such as the EU Whistleblower Directive.

Remediation steps

Root-cause analysis, disciplinary action, control enhancements, training refresh, and, where appropriate, self-disclosure to authorities, all documented to demonstrate good faith.

U.S. enforcement split

The DOJ prosecutes criminal FCPA cases, while the SEC brings civil cases against issuers; penalties include fines, disgorgement, monitorships, and imprisonment.

Deferred prosecution agreement

A UK mechanism under the Crime and Courts Act 2013 allowing the SFO to suspend prosecution of an organisation in exchange for conditions such as penalties and monitoring.

Cooperation credit

Recognition under DOJ and SEC policies of voluntary self-disclosure, full cooperation, and timely remediation as factors reducing penalties in enforcement actions.