Welcome
Integrity and honesty are at the heart of everything we do.
We hold ourselves accountable to the highest ethical standards and we must each take personal responsibility for complying with anti-bribery and anti-corruption laws and policies. We do not tolerate bribery or corruption involving our people, agents, vendors or other business partners.
After completing this course you should:
Identifying and escalating the red flags of bribery and corruption will help to protect the firm’s and your personal reputation.
While the firm has a robust control framework, one of our best defenses against bribery and corruption remains the vigilance of our people and our collective commitment to doing the right thing.
Whether you’ve been at the firm for one day or thirty years – everyone needs to take this training regularly. Take the time to go through this module and be thoughtful in your responses.
Did You Know…
Approximately 90% of all bribery enforcement actions have involved intermediaries/finders?
Direct and Indirect Intermediaries
Let’s break down the differences between Direct and Indirect intermediaries.
Select each image button to learn more.
Direct Intermediaries
Third parties engaged and/or compensated by the firm to:
- Find, introduce, identify, source or maintain business opportunities;
- Interact with or introduce the firm to public officials or government entities related to a business opportunity; or
- Satisfy a condition or requirement of a client, prospective client, public official or government entity in the firm’s involvement of a business opportunity.
‘Government entity’ refers to any office, agency, ministry, instrumentality, sovereign wealth fund, or other part of a national, regional, or local government, public international organization, or royal family.
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Indirect Intermediaries
Third parties engaged and/or compensated by a client, underwriting syndicate, co-investor, counterparty, acquisition target, or another non-firm party involved in a business opportunity with the firm to provide referral, introductory or advisory services.
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Certain third-party activities that take place in the ordinary course of the firm’s business may be excluded. For details, see the Firmwide Policy on Intermediaries/Finders.
Time to Focus: Learn the Red Flags
Some of the common red flags are when the intermediary:
Does not have a defined role and will not provide any services in the transaction, but participates in, or facilitates, the firm’s business discussions with the client, public officials, or other parties
Is introduced or recommended by a public official or government entity in connection with a transaction
Requests payments to or retention of a public official (or their immediate family members or close associates) or a Politically Exposed Person (PEP)
The term ‘PEP’ includes an individual who is a current or former senior government official, or a close associate or immediate family member of the same
See the Firmwide Policy on Intermediaries/Finders for the full definition
Refuses to include the firm’s standard anti-bribery provisions into the contract covering the intermediary arrangement
Is located and/or operating in a high-risk jurisdiction as set out in the Firmwide Annex on Country Lists
Will receive unusually high fees or other compensation/benefits
Provides an invoice that appears falsified or with inflated amounts, or has duplicative or vague descriptions of services
Has no identifiable media profile
Appears unqualified for the services being provided
For a full list of red flags, including those related to transactions, review the Firmwide Policy on Intermediaries/Finders.
Requirements
The Firmwide Procedures for Significant and Complex Transactions — ("SCTs") — describe the SCT governance and diligence processes related to SCTs and call attention to red flags of bribery and corruption.
All Intermediaries (Direct or Indirect) must be (i) disclosed in the SCT Memorandum and DDQ and (ii) escalated to Compliance for further review.
Did You Know…
The firm currently has over 9,300 vendor relationships?
Time to Focus: Learn the Red Flags
Some of the common red flags are when the vendor or other third party:
Is managed, owned or controlled by public officials
Provides entertainment to public officials
Charges unusually high or unexplained fees
Has been the subject of negative media or allegations that suggest fraud, bribery or other financial crime risks
Is located in or operating in high-risk jurisdictions
Obtains licenses, permits or other government approvals on behalf of the firm
Is recommended to the firm by a public official or government entity
Did You Know…
A financial institution paid $264 million to settle charges that it employed well-connected Chinese “princelings” – children of government officials – in order to win business.
Time to Focus: Learn the Red Flags
Some of the common red flags for Relationship Candidates are when:
An external party who refers a candidate recommends the Relationship Candidate on an email chain regarding a pending business transaction or potential opportunity
A GS employee who refers the Relationship Candidate (internal referrer) wants to hire the candidate despite relatively weak qualifications or negative interview feedback
Internal or external parties indicate the importance of a client or the potential benefits to the firm if the Relationship Candidate is hired/interviewed
A GS employee contacts interviewers and alerts them to the Relationship Candidate’s connection to a client, in an attempt to influence the candidate’s hiring process
A GS employee puts pressure on HCM for updates or excessively coaches the Relationship Candidate (e.g., editing resume, providing tips on specific interview questions, and/or offering multiple prep sessions or multiple introductions to firm personnel compared to non-Relationship Candidates)
The firm appears to create a position specifically for the Relationship Candidate
The internal referrer arranges interviews for a Relationship Candidate outside of the firm’s standard HCM recruiting process
Review the requirements set out under the Firmwide Policy on Relationship Candidates for more details.
At the Core
What do you need to know about gifts, travel and entertainment? Follow these “Do’s” and “Don’ts”.
Do
Submit pre-approval requests in Concur for:
- Any gift for a client or third party.
- Any travel or entertainment for "Restricted Recipients," no matter how much it costs.
- Any travel or entertainment for other clients or third parties (including ticketed events) that you expect will cost more than $250 per person.
Who are "Restricted Recipients"?
Public officials (including employees of state-owned entities and public pension funds, officials of supranational organizations and political parties), employees of exchanges, regulators, examiners, as well as ERISA fiduciaries.
If you are not sure about the client’s restriction status, you can check REPS, which is the firm’s tool for creating and maintaining third-party profiles.
Recordkeeping
Accurately report the total value of all gifts, travel and entertainment in Concur in a timely manner, even if part or all of the expense is paid with personal funds and you are not seeking reimbursement.
Only request reimbursement for valid business expenses. You are expected to carefully review your own expenses, even if the reports are prepared by others on your behalf.
Receiving
If you receive a gift worth more than US$100, or travel/entertainment worth more than US$250 from a client or another third party, you must seek approval through the Receipt of G&E Tool.
Keep in mind that some departments and regions may have stricter limits. If you have any doubts, ask your Compliance contact whether additional rules apply to you.
Don't
Offer, promise or authorize gifts, travel or entertainment to improperly influence government or regulatory action, or to obtain or maintain business or an improper business advantage.
Inappropriate expensing, inaccurate reporting or improper offering of gifts, travel or entertainment will result in disciplinary action.
Time to Focus: Learn the Red Flags
Some of the common red flags for gifts, travel and entertainment are:
Excessive entertainment of a single individual who is a key client decision-maker
Entertaining a Restricted Recipient without seeking pre-approval
Charging inappropriate personal expenses to client projects
Inviting a current or prospective client to a potentially lavish event ahead of a non-routine deal pitch
“Topping off” (i.e., failing to report the full value of gift, travel or entertainment provided by absorbing the excess amounts from personal funds)
Adding attendees to a Concur request to reduce the per-person cost
Review the core principles of the Firmwide Policy on Gifts, Travel and Entertainment for more details.
Think about it…
Under certain circumstances, political or charitable activities can present elevated bribery and corruption risks, or at least raise appearance issues.
Overview
Charitable contributions, including to bona fide charities, must never be made if the intent or effect is to improperly influence the business judgment of any person, including a public official, client, potential client, or influence government or regulatory action.
The rules with respect to political activities are complex and vary by jurisdiction with severe penalties for violations.
So, if you are unsure – ask questions and seek guidance from Compliance.
At the Core
What do you need to know about political and charitable contributions?
Select each image button to learn more.
Never Solicit Contributions for Improper Purposes
Never make or solicit a political or charitable contribution or engage in political or charitable activity to obtain or retain business or a business advantage from any person, including a client, potential client, public official or anyone connected to a government entity, or to influence government or regulatory action.
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Be Aware of Appearances
Even contributions to bona fide charities may create the appearance of potential bribery or corruption, if linked to firm business or a government or regulatory action.
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Seek Pre-Approval
Certain business-related charitable contributions, such as those related to public officials or government entities, high-risk jurisdictions, or pending non-routine business, must be pre-approved by AB&C.
The firm also requires pre-approval before GS employees (in certain jurisdictions, and in some cases their spouses and dependents) make political contributions or otherwise engage in political activity.
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Time to Focus: Learn the Red Flags
Some of the common red flags for charitable contributions include:
A public official requesting or otherwise associated with a contribution
Donation solicited by or directed to a jurisdiction known to be high-risk for bribery and corruption
Communications that suggest the awarding, retention or contracting of business is dependent on making a contribution
Pending non-routine business with the client requesting contribution
Lack of transparency around the bank account for the charitable recipient
Request for a contribution to be made anonymously or secretly
Review the Firmwide Policy on Charitable Contributions for a full list of red flags.
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Michel, a VP in AWM Private, is looking for new real estate opportunities in the housing sector in Turkey. Michel wishes to engage a consultancy firm with local industry experience operating in Turkey, to present potential acquisition targets for GS.
The consultancy firm has a wide network in the market, including rumored close connections with public officials who will be approving the acquisitions related to government housing assets. During diligence review, Michel learned that the managing partner of the consultancy firm has faced allegations of bid-rigging related to housing projects.
Which one of the following is NOT a red flag for bribery and corruption risk in this situation? Read the options carefully.
Select the option you think is correct and then select Submit.
Please only use the tab and shift tab keys to access each option and the Submit button with the keyboard. Then only use the Enter or Space key to select an option or the Submit button with the keyboard. The up and down arrow keys are not fully supported. If the screen reader suggests that you use the arrow keys to change an option, please ignore this. Continue using the tab and shift tab keys and then Enter or Space keys to change an option. If you stop hearing the screen reader use the tab key to reset the focus.
That’s correct.
The business opportunities are located in Turkey (a high-risk jurisdiction) and were introduced by a third-party consulting firm. GS then engaged the consulting firm, making it a Direct Intermediary. The third party (the managing partner of which has been the subject of adverse media for alleged bid-rigging) is rumored to have close connections with public officials who may be responsible for approving the business opportunities, which creates the potential for bribery.
Under the Firmwide Policy on Intermediaries/Finders, firm personnel must escalate the introduction of a business opportunity by a third-party intermediary to AB&C for review and pre-approval before the proposed engagement.
Sorry, that’s not quite right.
The business opportunities are located in Turkey (a high-risk jurisdiction) and were introduced by a third-party consulting firm. GS then engaged the consulting firm, making it a Direct Intermediary. The third party (the managing partner of which has been the subject of adverse media for alleged bid-rigging) is rumored to have close connections with public officials who may be responsible for approving the business opportunities, which creates the potential for bribery.
Under the Firmwide Policy on Intermediaries/Finders, firm personnel must escalate the introduction of a business opportunity by a third-party intermediary to AB&C for review and pre-approval before the proposed engagement.
Sorry, that's not right.
The business opportunities are located in Turkey (a high-risk jurisdiction) and were introduced by a third-party consulting firm. GS then engaged the consulting firm, making it a Direct Intermediary. The third party (the managing partner of which has been the subject of adverse media for alleged bid-rigging) is rumored to have close connections with public officials who may be responsible for approving the business opportunities, which creates the potential for bribery.
Under the Firmwide Policy on Intermediaries/Finders, firm personnel must escalate the introduction of a business opportunity by a third-party intermediary to AB&C for review and pre-approval before the proposed engagement.
Geoff, an MD in GBM Private, receives an email from the CFO of a client, a fintech company based in Hong Kong, with which the firm is in midst of potential financing discussions. The CFO asks Geoff if there are any opportunities for internships at the firm for his daughter. Geoff knows that the deadline for the current cycle has closed and that positions have been filled but tells the CFO that he will see if any additional headcount can be found. Without consulting GMB Private management, Geoff subsequently informs the CFO that he has found additional headcount for the position. In parallel, Geoff starts to coach the daughter with specific interview questions and arranges for her to be interviewed, highlighting to those interviewers the potential revenue from the client relationship.
Which of the following are red flags for bribery risk in this situation? Remember to read the options carefully.
Possible red flags:
- Geoff creates additional headcount for the position.
- Geoff excessively coaches the client’s daughter and highlights to interviewers the importance of the client relationship.
- There are pending business discussions with the client which may present potential bribery risk.
Select the option you think is correct and then select Submit.
Please only use the tab and shift tab keys to access each option and the Submit button with the keyboard. Then only use the Enter or Space key to select an option or the Submit button with the keyboard. The up and down arrow keys are not fully supported. If the screen reader suggests that you use the arrow keys to change an option, please ignore this. Continue using the tab and shift tab keys and then Enter or Space keys to change an option. If you stop hearing the screen reader use the tab key to reset the focus.
That’s correct.
Red flags for this situation are that Geoff finds additional headcount, excessively coaches the daughter, and highlights the importance of the client relationship with the interviewers, which may influence their feedback. All of the above are also taking place in midst of a potential business opportunity for the firm, which connects potential revenue with the firm hiring the Relationship Candidate and as a result creates the appearance that the firm is doing so improperly in exchange for future business.
The Firmwide Policy on Relationship Candidates states that candidates must be hired based on merit, not in exchange for prior or current business, to secure pending or future business, or to seek favorable treatment from a government entity or regulator. It also requires GS referrers to step away from the hiring process after notifying HCM of the client connection, prohibits excessive coaching, and prohibits requesting or finding additional headcount or positions for Relationship Candidates.
Sorry, that’s not quite right.
Red flags for this situation are that Geoff finds additional headcount, excessively coaches the daughter, and highlights the importance of the client relationship with the interviewers, which may influence their feedback. All of the above are also taking place in midst of a potential business opportunity for the firm, which connects potential revenue with the firm hiring the Relationship Candidate and as a result creates the appearance that the firm is doing so improperly in exchange for future business.
The Firmwide Policy on Relationship Candidates states that candidates must be hired based on merit, not in exchange for prior or current business, to secure pending or future business, or to seek favorable treatment from a government entity or regulator. It also requires GS referrers to step away from the hiring process after notifying HCM of the client connection, prohibits excessive coaching, and prohibits requesting or finding additional headcount or positions for Relationship Candidates.
Sorry, that's not right.
Red flags for this situation are that Geoff finds additional headcount, excessively coaches the daughter, and highlights the importance of the client relationship with the interviewers, which may influence their feedback. All of the above are also taking place in midst of a potential business opportunity for the firm, which connects potential revenue with the firm hiring the Relationship Candidate and as a result creates the appearance that the firm is doing so improperly in exchange for future business.
The Firmwide Policy on Relationship Candidates states that candidates must be hired based on merit, not in exchange for prior or current business, to secure pending or future business, or to seek favorable treatment from a government entity or regulator. It also requires GS referrers to step away from the hiring process after notifying HCM of the client connection, prohibits excessive coaching, and prohibits requesting or finding additional headcount or positions for Relationship Candidates.
Laura, a VP in AWM Public, receives an email from the CIO of a state university in the U.S. which is looking for a bank to manage its endowment. The firm was asked to submit a request for proposal (RFP) against other banks in a competitive bidding process.
The CIO reaches out to Laura to seek a charitable contribution from the firm for the development of a new sports facility at the university and implies that the RFP decision will be conditional upon the firm making a sizeable charitable donation.
Why should this request be escalated to Compliance?
Select the option you think is correct and then select Submit.
Please only use the tab and shift tab keys to access each option and the Submit button with the keyboard. Then only use the Enter or Space key to select an option or the Submit button with the keyboard. The up and down arrow keys are not fully supported. If the screen reader suggests that you use the arrow keys to change an option, please ignore this. Continue using the tab and shift tab keys and then Enter or Space keys to change an option. If you stop hearing the screen reader use the tab key to reset the focus.
That’s correct.
The fact that the CIO reached out to request that the firm make a charitable contribution is not in and of itself a red flag; however, suggesting that the RFP decision is conditional upon the firm making a donation is a red flag and therefore should be escalated to Compliance.
The Firmwide Policy on Charitable Contributions requires contributions made at the request of any party with whom the firm has or is actively soliciting a business relationship to be approved by the relevant business approver and the Executive Office. Certain business-related charitable contribution requests, including those at the request of or recommended by a current or prospective client or a public official require additional approval from AB&C in Compliance. This is because under some circumstances a charitable contribution could be viewed as, or give the appearance of, a bribe or other improper payment to influence an individual’s business judgment – in this case of the CIO who is a key decision-maker at a public university.
Sorry, that’s not quite right.
The fact that the CIO reached out to request that the firm make a charitable contribution is not in and of itself a red flag; however, suggesting that the RFP decision is conditional upon the firm making a donation is a red flag and therefore should be escalated to Compliance.
The Firmwide Policy on Charitable Contributions requires contributions made at the request of any party with whom the firm has or is actively soliciting a business relationship to be approved by the relevant business approver and the Executive Office. Certain business-related charitable contribution requests, including those at the request of or recommended by a current or prospective client or a public official require additional approval from AB&C in Compliance. This is because under some circumstances a charitable contribution could be viewed as, or give the appearance of, a bribe or other improper payment to influence an individual’s business judgment – in this case of the CIO who is a key decision-maker at a public university.
Sorry, that's not right.
The fact that the CIO reached out to request that the firm make a charitable contribution is not in and of itself a red flag; however, suggesting that the RFP decision is conditional upon the firm making a donation is a red flag and therefore should be escalated to Compliance.
The Firmwide Policy on Charitable Contributions requires contributions made at the request of any party with whom the firm has or is actively soliciting a business relationship to be approved by the relevant business approver and the Executive Office. Certain business-related charitable contribution requests, including those at the request of or recommended by a current or prospective client or a public official require additional approval from AB&C in Compliance. This is because under some circumstances a charitable contribution could be viewed as, or give the appearance of, a bribe or other improper payment to influence an individual’s business judgment – in this case of the CIO who is a key decision-maker at a public university.
Yan in GBM Public is arranging an offsite event with a small group of key senior representatives from a Saudi sovereign wealth fund (SWF) to discuss potential business opportunities. Before submitting a pre-approval request in Concur, she books an exclusive high-end resort and lines up an agenda with both educational topics and recreational activities. During the weekend trip, the SWF representatives use the spa, which is not one of the pre-agreed recreational activities, and charge it to the firm.
What should Yan have done in this scenario? Remember to read the options carefully.
- Yan should have submitted a pre-approval request in Concur for the gifts, travel and entertainment proposed to be offered at the event, as the SWF representatives are Restricted Recipients (e.g., public officials, employees of a government entity).
- Yan should have escalated the spa charges to Compliance as these are additional activities not pre-approved by the firm.
- Yan should not have hosted an offsite event.
Select the option you think is correct and then select Submit.
Please only use the tab and shift tab keys to access each option and the Submit button with the keyboard. Then only use the Enter or Space key to select an option or the Submit button with the keyboard. The up and down arrow keys are not fully supported. If the screen reader suggests that you use the arrow keys to change an option, please ignore this. Continue using the tab and shift tab keys and then Enter or Space keys to change an option. If you stop hearing the screen reader use the tab key to reset the focus.
That’s correct.
The Firmwide Policy on Gifts, Travel and Entertainment (GT&E) requires pre-approval when offering GT&E to Restricted Recipients. Entertaining a Restricted Recipient client in and of itself does not constitute a bribe, but there may be restrictions under their internal rules and local laws given they are public officials. Also, entertaining these public officials at a high-end resort during the weekend may be (or at least appear to be) not only lavish, but also improper or create a perception of quid pro quo given the entertainment coincides with pending deal discussions with senior decision-makers at the SWF.
The Policy also requires accurate and complete recording of GT&E to comply with regulatory obligations. Yan should escalate and consult with Compliance to make sure that the spa charges are addressed appropriately and reflected accurately in the firm’s books and records without knowingly misrepresenting, altering or omitting the facts. Failure to comply with the firm’s policies and exercise good judgment in the provision of GT&E can have serious consequences for the firm and the employee.
Sorry, that’s not quite right.
The Firmwide Policy on Gifts, Travel and Entertainment (GT&E) requires pre-approval when offering GT&E to Restricted Recipients. Entertaining a Restricted Recipient client in and of itself does not constitute a bribe, but there may be restrictions under their internal rules and local laws given they are public officials. Also, entertaining these public officials at a high-end resort during the weekend may be (or at least appear to be) not only lavish, but also improper or create a perception of quid pro quo given the entertainment coincides with pending deal discussions with senior decision-makers at the SWF.
The Policy also requires accurate and complete recording of GT&E to comply with regulatory obligations. Yan should escalate and consult with Compliance to make sure that the spa charges are addressed appropriately and reflected accurately in the firm’s books and records without knowingly misrepresenting, altering or omitting the facts. Failure to comply with the firm’s policies and exercise good judgment in the provision of GT&E can have serious consequences for the firm and the employee.
Sorry, that's not right.
The Firmwide Policy on Gifts, Travel and Entertainment (GT&E) requires pre-approval when offering GT&E to Restricted Recipients. Entertaining a Restricted Recipient client in and of itself does not constitute a bribe, but there may be restrictions under their internal rules and local laws given they are public officials. Also, entertaining these public officials at a high-end resort during the weekend may be (or at least appear to be) not only lavish, but also improper or create a perception of quid pro quo given the entertainment coincides with pending deal discussions with senior decision-makers at the SWF.
The Policy also requires accurate and complete recording of GT&E to comply with regulatory obligations. Yan should escalate and consult with Compliance to make sure that the spa charges are addressed appropriately and reflected accurately in the firm’s books and records without knowingly misrepresenting, altering or omitting the facts. Failure to comply with the firm’s policies and exercise good judgment in the provision of GT&E can have serious consequences for the firm and the employee.
Both GBM Private and GBM Public are working on a bond offering for the Government of Peru, with the proceeds to be used to fund specific renewable energy projects, which will be reviewed and approved by the Government.
During the course of the transaction, the teams become aware that the Government of Peru has retained a local consultant. The consultant, who has limited profile and no track record, will be responsible for advising the Government of Peru on the selection of banks involved and which projects will be funded from the bond offering.
Should this be escalated to Compliance?
Select the option you think is correct and then select Submit.
Please only use the tab and shift tab keys to access each option and the Submit button with the keyboard. Then only use the Enter or Space key to select an option or the Submit button with the keyboard. The up and down arrow keys are not fully supported. If the screen reader suggests that you use the arrow keys to change an option, please ignore this. Continue using the tab and shift tab keys and then Enter or Space keys to change an option. If you stop hearing the screen reader use the tab key to reset the focus.
Attestation
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