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ACCA Applied Knowledge · Business and Technology · Regulation and financial crime

A purchasing manager at Delta Co accepts an expensive holiday from a supplier shortly before awarding the supplier a large contract. Under the principles of anti-bribery legislation, which description is most accurate?

This is potentially bribery. A valuable benefit was given and accepted around the time a contract decision was made, suggesting it was intended to influence that decision improperly. Bribery does not require cash; any advantage offered to induce improper performance can qualify. It is not money laundering or false accounting.

  1. AIt is a legitimate business gift because no cash was paid
  2. BIt is potentially bribery, because a reward was offered and accepted to influence a business decisionCorrect
  3. CIt is money laundering because the holiday was concealed
  4. DIt is fraud by false accounting because the books were falsified

Explanation

Bribery involves offering, giving, requesting or accepting an advantage to induce improper performance of a function. The timing of the holiday relative to the contract suggests an inducement. Nothing indicates concealment of criminal proceeds or falsified records, so money laundering and false accounting do not fit.

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