Anti-money laundering clause: Copy, customize, and use instantly
Introduction
An anti-money laundering (AML) clause is included in contracts to ensure that both parties comply with relevant laws and regulations regarding the prevention of money laundering and financing of terrorism. This clause typically requires the parties to implement procedures to monitor, report, and prevent any illegal financial activities related to the contract.
Below are templates for anti-money laundering clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
General anti-money laundering clause
This variation applies when the parties are required to comply with general anti-money laundering regulations.
Both parties agree to comply with all applicable anti-money laundering laws and regulations in the jurisdiction where the agreement is executed. Each party shall implement and maintain appropriate systems and procedures to detect, prevent, and report any suspicious financial activities related to this agreement.
Anti-money laundering reporting clause
This variation applies when the parties are required to report suspicious activities.
In accordance with applicable anti-money laundering laws, both parties agree to report any suspicious activity related to this agreement to the appropriate authorities. Any transaction that raises concerns regarding the source of funds or compliance with anti-money laundering regulations shall be reported immediately.
Anti-money laundering due diligence clause
This variation applies when the parties are required to conduct due diligence to prevent money laundering.
Each party agrees to conduct appropriate due diligence on their respective clients, partners, and stakeholders to ensure compliance with anti-money laundering laws. Both parties shall take reasonable steps to verify the identity of parties involved in the transactions and monitor for any signs of money laundering.
Anti-money laundering cooperation clause
This variation applies when the parties agree to cooperate in anti-money laundering efforts.
The parties agree to fully cooperate with each other and with regulatory authorities in the detection, investigation, and reporting of any suspected money laundering activities. Both parties will provide all necessary information and documentation required to comply with applicable anti-money laundering regulations.
Anti-money laundering termination clause
This variation applies when non-compliance with anti-money laundering laws results in termination of the agreement.
If either party fails to comply with the applicable anti-money laundering laws or regulations, the non-defaulting party may terminate this agreement immediately upon written notice. The termination date shall be the date specified in the notice, and both parties will cease all obligations under the agreement.
Anti-money laundering audit clause
This variation applies when one party is authorized to audit the other party’s compliance with anti-money laundering laws.
Either party may request an audit of the other party’s anti-money laundering compliance procedures to ensure adherence to applicable laws and regulations. The audited party shall grant access to all relevant records and cooperate fully with the audit process.
Anti-money laundering indemnity clause
This variation applies when one party agrees to indemnify the other for violations of anti-money laundering laws.
Each party agrees to indemnify and hold the other party harmless from any claims, fines, or penalties arising from the violation of any anti-money laundering laws or regulations by the indemnifying party. This indemnity includes all costs associated with compliance or enforcement actions taken due to violations by the indemnifying party.
Anti-money laundering sanctions clause
This variation applies when the parties agree to comply with sanctions related to anti-money laundering laws.
The parties agree to comply with all applicable international and local sanctions laws as part of their obligations under this agreement. Neither party shall engage in any activity that could result in sanctions being imposed under anti-money laundering or other related laws.
Anti-money laundering risk assessment clause
This variation applies when the parties agree to assess the risk of money laundering activities.
Both parties agree to conduct regular risk assessments to identify and mitigate the potential risks of money laundering in relation to this agreement. The parties shall assess any changes in circumstances that may affect the level of risk and update their compliance procedures accordingly.
Anti-money laundering compliance certificate clause
This variation applies when one party must provide a certificate of compliance with anti-money laundering laws.
Each party agrees to provide a certificate of compliance with applicable anti-money laundering laws upon request. This certificate shall affirm that the party has implemented all necessary policies and procedures to comply with anti-money laundering regulations.
Anti-money laundering verification clause
This variation applies when the parties are required to verify the source of funds involved in the agreement.
Both parties agree to verify the source of any funds used in connection with this agreement. Each party shall take reasonable steps to ensure that the funds are not derived from illicit or illegal activities and will report any suspicious activity to the relevant authorities.
Anti-money laundering breach notification clause
This variation applies when one party must notify the other in case of an anti-money laundering breach.
If either party becomes aware of a breach or potential breach of anti-money laundering laws in connection with this agreement, they must notify the other party immediately. The notifying party shall provide all relevant details and cooperate fully in any investigation or remedial action.
Anti-money laundering cooperation with regulators clause
This variation applies when the parties agree to cooperate with regulators on anti-money laundering matters.
The parties agree to cooperate fully with regulatory authorities in the event of an investigation or inquiry regarding compliance with anti-money laundering laws. Both parties will provide all necessary documentation and assistance required by regulators to support compliance efforts.
Anti-money laundering monitoring clause
This variation applies when the parties are required to implement ongoing monitoring of financial activities.
Both parties agree to implement ongoing monitoring procedures to detect and prevent any suspicious activity related to money laundering throughout the duration of this agreement. The monitoring will include reviewing all transactions and client interactions for potential money laundering risks.
Anti-money laundering training clause
This variation applies when the parties agree to provide training to employees on anti-money laundering compliance.
Each party agrees to provide regular training for its employees regarding anti-money laundering laws and procedures. This training will cover topics such as detecting suspicious activity, understanding legal obligations, and reporting requirements.
Anti-money laundering compliance review clause
This variation applies when one party is required to review the other party’s anti-money laundering compliance.
Both parties agree to review and assess each other’s anti-money laundering compliance programs on an annual basis. Any deficiencies identified during the review will be addressed promptly, and corrective actions will be taken to ensure compliance with applicable laws.
Anti-money laundering reporting to authorities clause
This variation applies when the parties are required to report to authorities any suspicious activities.
In the event that either party suspects that any funds or transactions involved in this agreement are linked to money laundering or terrorist financing, the parties agree to report these suspicions immediately to the relevant authorities in accordance with applicable laws.
Anti-money laundering compliance in subcontracts clause
This variation applies when the parties are required to ensure that their subcontractors comply with anti-money laundering regulations.
Both parties agree to ensure that any subcontractors or third-party service providers involved in this agreement comply with all applicable anti-money laundering laws and regulations. Each party shall include similar anti-money laundering provisions in their contracts with subcontractors.
Anti-money laundering due diligence records clause
This variation applies when parties must maintain records of their due diligence efforts.
Both parties agree to maintain detailed records of their due diligence efforts in relation to anti-money laundering compliance. These records will be available for review upon request by regulatory authorities or as part of an audit process.
Anti-money laundering dispute resolution clause
This variation applies when a dispute regarding anti-money laundering compliance needs resolution.
In the event of a dispute arising from compliance with anti-money laundering laws, both parties agree to engage in good-faith negotiations to resolve the issue. If the dispute cannot be resolved through negotiation, the parties agree to submit the matter to mediation or arbitration as provided in the dispute resolution clause of this agreement.
Anti-money laundering disclosure clause
This variation applies when one party must disclose certain information related to anti-money laundering compliance.
[Party Name] agrees to disclose to [Other Party Name] any information or documents requested to confirm compliance with anti-money laundering laws. This disclosure shall include details of the measures taken by the party to prevent money laundering and to ensure legal compliance.
Anti-money laundering financial transaction monitoring clause
This variation applies when the parties are required to monitor financial transactions for anti-money laundering purposes.
Both parties agree to monitor all financial transactions associated with this agreement to detect and report any potentially suspicious activity. Monitoring procedures will include periodic checks of transaction volumes, sources of funds, and destination accounts.
Anti-money laundering compliance officer clause
This variation applies when the parties must designate a compliance officer for anti-money laundering matters.
Both parties agree to designate an anti-money laundering compliance officer who will be responsible for ensuring that the obligations outlined in this agreement are met. The compliance officer will oversee due diligence procedures, reporting requirements, and ongoing monitoring efforts.
Anti-money laundering transaction limits clause
This variation applies when limits are set on the transactions that can be conducted under the agreement.
Both parties agree to establish transaction limits in line with anti-money laundering regulations. Transactions exceeding [specified limit] will be subject to enhanced due diligence and additional reporting requirements.
Anti-money laundering investigation cooperation clause
This variation applies when the parties are required to cooperate in investigations related to money laundering.
If either party becomes involved in an investigation regarding money laundering or terrorist financing, both parties agree to cooperate fully with the authorities and each other. This includes providing access to records and assisting with any investigative process.
Anti-money laundering cross-border compliance clause
This variation applies when the agreement involves cross-border transactions and compliance.
If this agreement involves transactions or activities across borders, both parties agree to comply with international anti-money laundering laws and regulations, including the reporting of any cross-border suspicious transactions as required by applicable law.
Anti-money laundering documentation clause
This variation applies when the parties agree to maintain specific documentation related to anti-money laundering compliance.
Both parties agree to maintain all necessary documentation proving compliance with anti-money laundering laws, including due diligence records, suspicious activity reports, and any communications with regulatory authorities, for a period of at least [specified number of years].
Anti-money laundering update clause
This variation applies when the parties agree to update their procedures in response to new regulations.
Both parties agree to update their anti-money laundering procedures as needed to comply with any new or amended laws, regulations, or guidance issued by regulatory authorities. These updates will be implemented promptly and communicated to both parties.
Anti-money laundering compliance monitoring clause
This variation applies when the parties are required to monitor ongoing compliance with anti-money laundering regulations.
Both parties agree to continuously monitor their operations to ensure compliance with all applicable anti-money laundering laws. If any irregularities are detected, they will be reported immediately to the relevant authorities, and corrective actions will be taken as necessary.
Anti-money laundering risk mitigation clause
This variation applies when the parties agree to implement risk mitigation strategies against money laundering.
Both parties agree to assess and mitigate any potential risks related to money laundering before entering into any transactions under this agreement. The parties will take steps to minimize any exposure to illegal financial activities.
Anti-money laundering audit rights clause
This variation applies when one party has the right to audit the other party’s anti-money laundering practices.
The parties agree that [Party Name] has the right to audit [Other Party Name]’s anti-money laundering practices to ensure compliance with all applicable laws. This audit may include reviewing policies, procedures, and any relevant records related to money laundering prevention.
Anti-money laundering representation clause
This variation applies when each party represents its compliance with anti-money laundering laws.
Each party represents and warrants that it has implemented policies and procedures to comply with all applicable anti-money laundering laws and regulations. Both parties affirm that they are not involved in any illegal financial activities.
Anti-money laundering contract termination clause
This variation applies when non-compliance with anti-money laundering regulations leads to termination of the agreement.
In the event that either party fails to comply with the anti-money laundering laws, the non-breaching party may terminate this agreement immediately. The termination will take effect on the date specified in the written notice of termination.
Anti-money laundering prohibition clause
This variation applies when the agreement specifically prohibits certain activities related to money laundering.
Both parties agree to refrain from engaging in any activities that may be deemed money laundering or the financing of terrorism under applicable laws. This includes not knowingly conducting transactions that involve illicit funds or sources.
Anti-money laundering cooperation with law enforcement clause
This variation applies when the parties agree to cooperate with law enforcement agencies.
Both parties agree to cooperate fully with law enforcement agencies in the event of an investigation related to money laundering or terrorist financing. This includes providing any requested information or records and supporting authorities as required by law.
Anti-money laundering legal action clause
This variation applies when the parties agree to take legal action in case of money laundering.
In the event of suspected or actual involvement in money laundering, both parties agree to take immediate legal action, including reporting to appropriate authorities and cooperating with any investigation. The parties will comply with all applicable laws regarding such matters.
Anti-money laundering confirmation clause
This variation applies when one party must confirm their anti-money laundering compliance.
[Party Name] confirms that it is in full compliance with all applicable anti-money laundering laws and regulations. Upon request, the party shall provide supporting documentation or evidence to confirm such compliance.
Anti-money laundering certification clause
This variation applies when the parties agree to certify their anti-money laundering compliance.
Both parties agree to provide a certification of compliance with anti-money laundering laws upon request. This certification will confirm that both parties have implemented the necessary procedures to detect, prevent, and report suspicious financial activities.
Anti-money laundering notification clause
This variation applies when one party must notify the other of any potential money laundering activities.
If either party becomes aware of any activities that may involve money laundering or the financing of terrorism, they must notify the other party immediately. Both parties agree to take appropriate action to address any such concerns.
Anti-money laundering due diligence documentation clause
This variation applies when the parties agree to maintain documentation of due diligence efforts.
Each party agrees to maintain thorough documentation of all due diligence efforts undertaken in relation to this agreement. These records shall include evidence of customer identification, risk assessments, and any suspicious activity reports filed.
Anti-money laundering employee training clause
This variation applies when the parties agree to provide training to their employees regarding anti-money laundering laws.
Both parties agree to ensure that their employees involved in transactions under this agreement receive appropriate training on anti-money laundering laws and procedures. This training will include recognizing suspicious activity and understanding reporting requirements.
Anti-money laundering compliance updates clause
This variation applies when the parties agree to update their anti-money laundering compliance measures.
Both parties agree to review and update their anti-money laundering compliance measures regularly to ensure they reflect the most current laws and regulations. Any updates will be communicated to both parties and implemented immediately.
Anti-money laundering background checks clause
This variation applies when the parties agree to conduct background checks on relevant individuals.
Both parties agree to perform background checks on all individuals involved in the execution of this agreement to ensure they are not involved in money laundering or financing of terrorism. Any individuals found to be involved in such activities will be immediately removed from the project.
Anti-money laundering compliance verification clause
This variation applies when one party verifies the other’s compliance with anti-money laundering regulations.
[Party Name] agrees to verify the anti-money laundering compliance of [Other Party Name] by reviewing relevant compliance documents. If any discrepancies or issues are found, [Party Name] may request corrective action or terminate the agreement.
Anti-money laundering third-party agreement clause
This variation applies when third parties involved in the agreement must also comply with anti-money laundering laws.
Both parties agree to require any third-party service providers involved in this agreement to comply with anti-money laundering regulations. The parties will ensure that all third parties understand and implement anti-money laundering procedures to prevent illegal activities.
Anti-money laundering financial monitoring clause
This variation applies when the parties agree to monitor financial transactions for money laundering.
Both parties agree to implement systems to monitor financial transactions for any signs of money laundering or other illicit financial activities. Any suspicious transactions will be reported to the appropriate authorities for further investigation.
Anti-money laundering legal compliance clause
This variation applies when the parties agree to comply with all relevant legal anti-money laundering requirements.
Both parties agree to comply with all legal anti-money laundering obligations, including identifying and reporting suspicious transactions, maintaining records of due diligence activities, and cooperating with regulatory authorities as required by law.
Anti-money laundering certification of compliance clause
This variation applies when the parties agree to provide annual certification of compliance with anti-money laundering laws.
Each party agrees to provide an annual certification confirming compliance with all applicable anti-money laundering laws and regulations. The certification will include an overview of the procedures in place to prevent and detect money laundering.
Anti-money laundering jurisdiction compliance clause
This variation applies when the parties agree to comply with anti-money laundering laws in multiple jurisdictions.
Both parties agree to comply with anti-money laundering regulations in all jurisdictions where they operate. Each party will ensure that it meets all legal obligations in the relevant jurisdictions to prevent money laundering and the financing of terrorism.
Anti-money laundering cooperative investigation clause
This variation applies when the parties agree to cooperate during an investigation related to money laundering.
In the event of an investigation related to money laundering or terrorism financing, both parties agree to cooperate fully with authorities and provide all necessary information to assist in the investigation. This includes sharing records, providing access to relevant personnel, and fulfilling any legal requirements.
Anti-money laundering compliance obligations clause
This variation applies when both parties agree to specific compliance obligations for anti-money laundering.
Both parties agree to comply fully with all applicable anti-money laundering laws, including implementing adequate procedures for customer verification, transaction monitoring, and suspicious activity reporting. Each party will be responsible for its compliance with these obligations.
Anti-money laundering certification clause for third parties
This variation applies when third-party vendors must also comply with anti-money laundering regulations.
Both parties agree to require any third-party vendors or contractors involved in this agreement to certify their compliance with applicable anti-money laundering laws. The parties will ensure that these third parties have the necessary procedures in place to prevent illicit activities.
Anti-money laundering risk assessment and mitigation clause
This variation applies when parties agree to assess and mitigate risks related to money laundering.
Both parties agree to perform regular risk assessments to identify potential money laundering risks associated with the transactions under this agreement. They will take appropriate action to mitigate these risks, including modifying their procedures or terminating transactions deemed high-risk.
Anti-money laundering financial reporting clause
This variation applies when both parties agree to report any suspicious financial activities related to the agreement.
Both parties agree to file reports with the relevant authorities if they detect any suspicious transactions that may be linked to money laundering activities. Reports will be filed in accordance with applicable financial regulations and within the prescribed time frames.
Anti-money laundering investigation cooperation clause
This variation applies when both parties agree to cooperate during an investigation related to money laundering.
Both parties agree to fully cooperate with each other and with regulatory authorities in the event of an investigation into potential money laundering activities. This includes providing access to relevant records, documentation, and personnel as needed during the investigation.
Anti-money laundering audit compliance clause
This variation applies when one party is authorized to audit the other’s anti-money laundering procedures.
[Party Name] has the right to audit [Other Party Name]’s anti-money laundering compliance procedures at any time during the term of this agreement. [Party Name] may review relevant records and transactions to ensure full compliance with applicable laws and regulations.
Anti-money laundering monitoring and reporting clause
This variation applies when both parties agree to monitor transactions for potential money laundering activities.
Both parties agree to establish monitoring systems to detect and report any suspicious activities or transactions related to money laundering. Any unusual transactions must be reported immediately to the appropriate authorities, and both parties agree to take corrective actions as necessary.
Anti-money laundering disclosure of beneficial ownership clause
This variation applies when one party agrees to disclose beneficial ownership to ensure compliance.
Each party agrees to disclose the beneficial ownership of any entities involved in transactions related to this agreement. The disclosure will include the names and addresses of individuals who own or control more than [X]% of the entities involved in the transactions.
Anti-money laundering review of partners clause
This variation applies when both parties agree to review their business partners for money laundering risks.
Both parties agree to conduct due diligence and review all business partners involved in this agreement to assess the risk of money laundering. If any partner is found to have a history of involvement in illicit activities, the parties agree to immediately terminate their business relationship.
Anti-money laundering identification verification clause
This variation applies when the parties agree to verify the identities of all relevant individuals.
Each party agrees to verify the identities of all individuals involved in transactions under this agreement, including clients, customers, and representatives. Verification will include the collection of official identification and any other necessary documents to confirm the individual’s identity.
Anti-money laundering non-cooperation clause
This variation applies when one party may terminate the agreement if the other party fails to cooperate with anti-money laundering efforts.
If either party refuses to cooperate with anti-money laundering procedures, the non-defaulting party may terminate this agreement immediately upon written notice. The termination date will be effective as of the notice date, and the defaulting party will remain liable for obligations up to that point.
Anti-money laundering policy adoption clause
This variation applies when the parties agree to adopt and enforce anti-money laundering policies.
Both parties agree to adopt comprehensive anti-money laundering policies that comply with applicable laws. These policies will be reviewed and updated regularly to ensure they address emerging risks and comply with any changes in the regulatory environment.
Anti-money laundering jurisdiction compliance clause
This variation applies when both parties agree to comply with anti-money laundering regulations across different jurisdictions.
Both parties agree to comply with all applicable anti-money laundering laws in the jurisdictions where they operate, including any regulations regarding transaction reporting, due diligence, and the monitoring of business activities for suspicious behavior.
Anti-money laundering breach consequences clause
This variation applies when non-compliance with anti-money laundering regulations leads to penalties.
Any party found to have violated the provisions of this anti-money laundering clause will be liable for any fines, penalties, or damages resulting from their failure to comply with applicable laws. The offending party will also be responsible for covering the costs associated with addressing any breaches.
Anti-money laundering investigation suspension clause
This variation applies when an ongoing investigation suspends the agreement.
In the event that an investigation related to money laundering is initiated, both parties agree to suspend the performance of the agreement until the investigation is completed. If the investigation results in findings of non-compliance, this agreement may be terminated immediately.
Anti-money laundering compliance certificate submission clause
This variation applies when a party must submit a compliance certificate.
[Party Name] agrees to submit an annual compliance certificate confirming adherence to all applicable anti-money laundering regulations. This certificate must be submitted to [Other Party Name] within [X] days of the end of each fiscal year.
Anti-money laundering transparency clause
This variation applies when the parties agree to maintain transparency regarding anti-money laundering practices.
Both parties agree to maintain transparency in their anti-money laundering practices by sharing any relevant updates or changes in their procedures. This includes notifying the other party of any findings related to suspicious activities or compliance violations.
Anti-money laundering confidentiality clause
This variation applies when the parties agree to keep anti-money laundering information confidential.
Both parties agree to treat all anti-money laundering-related information as confidential and to use it solely for the purpose of ensuring compliance with applicable laws. Neither party shall disclose such information to third parties without prior written consent, except as required by law.
Anti-money laundering documentation retention clause
This variation applies when both parties agree to retain documentation for a specified period.
Both parties agree to retain all records related to anti-money laundering compliance, including transaction reports, due diligence documents, and training materials, for a minimum of [X] years from the date of the transaction or last activity related to this agreement.
Anti-money laundering automatic termination clause
This variation applies when the agreement automatically terminates if certain conditions are met.
This agreement shall automatically terminate upon the discovery of any involvement in money laundering activities by either party. The termination will be immediate, and both parties will be relieved of any future obligations under the agreement.
Anti-money laundering continuous compliance monitoring clause
This variation applies when ongoing monitoring for compliance is required.
Both parties agree to continuously monitor their operations to ensure compliance with anti-money laundering laws throughout the term of this agreement. Any failure to comply with regulations will trigger an immediate review and potential termination of the agreement.
Anti-money laundering confidentiality breach clause
This variation applies when the parties agree to immediately notify the other party in the event of a breach of confidentiality related to anti-money laundering matters.
In the event of any breach of confidentiality regarding anti-money laundering matters, the offending party agrees to immediately notify the other party. The parties will cooperate to resolve the issue and take appropriate corrective actions to protect sensitive information.
Anti-money laundering transaction limit clause
This variation applies when the parties agree to set limits on transactions to mitigate the risk of money laundering.
Both parties agree to impose limits on the value of transactions conducted under this agreement. Any transaction that exceeds [specified amount] will trigger enhanced due diligence and additional reporting requirements under applicable anti-money laundering regulations.
Anti-money laundering customer identification clause
This variation applies when both parties are required to identify their customers to prevent money laundering.
Both parties agree to verify the identity of any customers or clients involved in transactions under this agreement. The identification process will include obtaining valid government-issued identification and conducting background checks to ensure no involvement in illicit activities.
Anti-money laundering compliance monitoring and audit clause
This variation applies when both parties agree to monitor and audit each other’s anti-money laundering compliance efforts.
Both parties agree to monitor and audit each other's compliance with anti-money laundering regulations on an ongoing basis. The parties will share findings and take necessary actions to address any deficiencies in compliance procedures.
Anti-money laundering responsibility clause
This variation applies when each party is assigned specific responsibilities for compliance.
Each party is responsible for ensuring compliance with anti-money laundering regulations within their operations. This includes conducting due diligence, monitoring transactions, and reporting suspicious activities in accordance with applicable laws.
Anti-money laundering policy review clause
This variation applies when the parties agree to regularly review their anti-money laundering policies.
Both parties agree to review their anti-money laundering policies and procedures at least annually to ensure they remain compliant with current laws and regulations. Any necessary adjustments will be made promptly to align with changes in the regulatory environment.
Anti-money laundering breach of contract clause
This variation applies when failure to comply with anti-money laundering laws constitutes a breach of the agreement.
Failure to comply with the anti-money laundering provisions of this agreement shall constitute a material breach of the contract. The non-breaching party may terminate the agreement immediately if the breach is not cured within [X] days after written notice.
Anti-money laundering false documentation clause
This variation applies when providing false documentation triggers termination.
If either party submits false documentation related to anti-money laundering compliance or knowingly engages in deceptive practices, the other party may immediately terminate the agreement, and the offending party will be held liable for any damages incurred.
Anti-money laundering cross-border compliance clause
This variation applies when the agreement involves cross-border transactions, requiring compliance with multiple jurisdictions.
Both parties agree to comply with all applicable anti-money laundering laws in any jurisdiction where they operate, including cross-border laws that regulate the flow of funds and the prevention of illegal financial activities.
Anti-money laundering subcontractor compliance clause
This variation applies when subcontractors are required to comply with anti-money laundering laws.
The parties agree to ensure that any subcontractors or third-party service providers involved in fulfilling the terms of this agreement are also compliant with applicable anti-money laundering laws. Each party will require its subcontractors to adhere to similar compliance standards.
Anti-money laundering training requirement clause
This variation applies when the parties are required to provide regular anti-money laundering training.
Both parties agree to provide regular anti-money laundering training to their employees involved in the execution of this agreement. The training will cover relevant laws, identifying suspicious activity, and reporting requirements.
Anti-money laundering compliance audit clause
This variation applies when one party can audit the other’s compliance with anti-money laundering laws.
[Party Name] reserves the right to audit [Other Party Name]’s compliance with anti-money laundering laws and procedures at any time during the term of this agreement. The audited party agrees to provide access to all relevant records and documentation necessary for the audit.
Anti-money laundering investigation cooperation clause
This variation applies when both parties agree to cooperate during an investigation of potential money laundering.
Both parties agree to fully cooperate with each other and with regulatory authorities in the event of an investigation into potential money laundering activities related to this agreement. This includes providing requested documents and access to relevant information.
Anti-money laundering written compliance report clause
This variation applies when the parties agree to provide written compliance reports.
Both parties agree to submit written reports of their anti-money laundering compliance efforts on an annual basis. The report will detail any suspicious activities, the steps taken to mitigate risks, and any actions taken to ensure adherence to applicable laws.
Anti-money laundering transaction monitoring clause
This variation applies when the parties agree to monitor transactions for signs of money laundering.
Both parties agree to continuously monitor transactions conducted under this agreement for signs of money laundering. If any suspicious transactions are identified, they will be immediately reported to the appropriate regulatory authorities.
Anti-money laundering enhanced due diligence clause
This variation applies when enhanced due diligence procedures are required for higher-risk transactions.
Both parties agree to perform enhanced due diligence for transactions deemed high-risk based on factors such as transaction size, source of funds, and jurisdiction. Enhanced due diligence will include verifying the legitimacy of the transaction and the involved parties.
Anti-money laundering notification of breach clause
This variation applies when a party is required to notify the other in case of a breach of anti-money laundering regulations.
In the event that either party becomes aware of a breach or potential breach of anti-money laundering laws, they agree to notify the other party immediately. Both parties will work together to rectify the issue and report it to the relevant authorities.
Anti-money laundering enforcement clause
This variation applies when one party agrees to enforce anti-money laundering compliance.
[Party Name] agrees to take all necessary actions to enforce compliance with anti-money laundering laws under this agreement. This includes monitoring for suspicious activities, ensuring due diligence procedures are followed, and addressing any issues identified during audits or reviews.
Anti-money laundering confidentiality agreement clause
This variation applies when both parties agree to maintain confidentiality regarding anti-money laundering-related matters.
Both parties agree to maintain confidentiality regarding any information related to anti-money laundering compliance. This includes keeping reports, audits, and investigation details confidential unless required by law or regulatory authorities.
Anti-money laundering ongoing compliance verification clause
This variation applies when ongoing compliance with anti-money laundering regulations must be verified.
Both parties agree to verify their ongoing compliance with anti-money laundering laws throughout the term of this agreement. The verification process will include periodic checks and updates to ensure continued adherence to relevant laws and regulations.
Anti-money laundering compliance program clause
This variation applies when both parties must implement a compliance program.
Both parties agree to implement a comprehensive anti-money laundering compliance program. This program will include internal policies, procedures for reporting suspicious activities, staff training, and regular audits to ensure adherence to anti-money laundering laws.
Anti-money laundering compliance breach investigation clause
This variation applies when a breach of anti-money laundering regulations requires an investigation.
In the event of a suspected breach of anti-money laundering regulations, both parties agree to conduct a thorough investigation into the matter. The investigation will include reviewing relevant transactions, communications, and records to determine the extent of the breach.
Anti-money laundering audit access clause
This variation applies when one party must provide audit access to ensure compliance.
[Party Name] agrees to provide [Other Party Name] or its designated auditors with access to all necessary records and documents related to anti-money laundering compliance. This access will enable a comprehensive audit to ensure the party is adhering to all applicable regulations.
Anti-money laundering program implementation clause
This variation applies when both parties are required to implement anti-money laundering programs.
Both parties agree to implement an anti-money laundering program within [X] days of signing this agreement. The program will include risk assessments, employee training, reporting mechanisms, and other measures to ensure compliance with applicable laws.
Anti-money laundering compliance review clause
This variation applies when the parties agree to regularly review their anti-money laundering compliance.
Both parties agree to review their anti-money laundering compliance efforts annually. The review will assess the effectiveness of the implemented policies and procedures and recommend any necessary adjustments to improve compliance with the applicable regulations.
Anti-money laundering cross-border transaction clause
This variation applies when cross-border transactions require additional anti-money laundering measures.
Both parties agree to implement enhanced anti-money laundering procedures for cross-border transactions. This includes verifying the origin of funds, ensuring compliance with both local and international anti-money laundering regulations, and reporting suspicious activities to relevant authorities.
Anti-money laundering verification of sources of funds clause
This variation applies when the parties are required to verify the sources of funds involved in the agreement.
Both parties agree to verify the sources of any funds involved in transactions under this agreement. If the source of funds is deemed suspicious or unclear, the parties agree to conduct further investigations and, if necessary, report the findings to the relevant authorities.
Anti-money laundering compliance breach rectification clause
This variation applies when a breach of anti-money laundering regulations must be rectified.
In the event of a breach of anti-money laundering regulations, the breaching party agrees to immediately rectify the situation by implementing corrective measures. This may include updating internal policies, conducting further due diligence, or reporting the breach to the relevant authorities.
Anti-money laundering verification of clients and customers clause
This variation applies when the parties agree to verify the identities of all clients and customers involved in the agreement.
Both parties agree to verify the identities of all clients and customers involved in transactions under this agreement. The verification process will include obtaining and reviewing official identification documents to confirm the legitimacy of each party.
Anti-money laundering customer due diligence clause
This variation applies when the parties agree to conduct customer due diligence.
Both parties agree to conduct thorough customer due diligence (CDD) to verify the identity and assess the risk of money laundering associated with each customer involved in transactions under this agreement. Any high-risk customers will undergo enhanced due diligence.
Anti-money laundering reporting threshold clause
This variation applies when the parties agree on a threshold for reporting suspicious transactions.
Both parties agree to report any transactions that exceed [specified amount] or exhibit suspicious characteristics as defined by applicable anti-money laundering regulations. These transactions will be reported to the relevant authorities within [X] days of identification.
Anti-money laundering financial institution compliance clause
This variation applies when the parties require financial institutions involved in the agreement to comply with anti-money laundering laws.
Both parties agree to ensure that any financial institutions involved in this agreement, including banks and payment processors, are fully compliant with anti-money laundering regulations. All institutions will be required to provide evidence of compliance upon request.
Anti-money laundering jurisdiction review clause
This variation applies when the parties review the jurisdictions they operate in for anti-money laundering risks.
Both parties agree to regularly assess the jurisdictions in which they operate to identify any anti-money laundering risks specific to those regions. This includes reviewing regulatory frameworks and ensuring compliance with local and international standards.
Anti-money laundering cooperation in investigations clause
This variation applies when the parties agree to cooperate during investigations of money laundering activities.
Both parties agree to cooperate fully with each other and with regulatory or law enforcement authorities in the event of an investigation into suspected money laundering. This includes sharing relevant documents, transaction details, and any other requested information.
Anti-money laundering false information clause
This variation applies when the parties agree to verify that the information provided is accurate.
Both parties agree to ensure that all information provided in connection with transactions under this agreement is accurate and complete. Any party found to have provided false or misleading information related to money laundering will be immediately reported and may face termination of the agreement.
Anti-money laundering customer screening clause
This variation applies when the parties agree to screen customers for anti-money laundering risks.
Both parties agree to screen all customers involved in transactions under this agreement against relevant sanction lists, including lists of known money launderers or terrorists. If a match is found, the transaction will be blocked and reported to the authorities.
Anti-money laundering third-party due diligence clause
This variation applies when due diligence is required for third parties involved in the agreement.
Both parties agree to conduct due diligence on any third-party contractors or service providers involved in this agreement to ensure that they comply with anti-money laundering laws. This includes verifying the identity of individuals and assessing the risk of involvement in money laundering.
Anti-money laundering financial transaction verification clause
This variation applies when the parties agree to verify the legitimacy of financial transactions.
Both parties agree to verify the legitimacy of all financial transactions associated with this agreement. This includes confirming the source of funds, the purpose of the transaction, and ensuring that no illicit activities are involved.
Anti-money laundering sanctions compliance clause
This variation applies when the parties agree to comply with international sanctions laws.
Both parties agree to comply with all international sanctions related to anti-money laundering laws. This includes ensuring that none of the parties, clients, or transactions involved are listed on any international sanctions lists.
Anti-money laundering enhanced record-keeping clause
This variation applies when enhanced record-keeping practices are required.
Both parties agree to maintain detailed records of all transactions, including the identities of the parties involved, the amounts transferred, and the purpose of the transaction, for a minimum of [X] years. These records will be made available for review by authorities upon request.
Anti-money laundering non-compliance penalties clause
This variation applies when there are penalties for failing to comply with anti-money laundering regulations.
Both parties agree to be subject to penalties for failing to comply with anti-money laundering regulations, including fines, suspension, or termination of this agreement. Any non-compliance will result in immediate corrective actions and may lead to legal consequences.
Anti-money laundering identity verification clause
This variation applies when identity verification is required for all involved parties.
Both parties agree to verify the identity of all individuals or entities involved in financial transactions under this agreement. This includes collecting and reviewing government-issued identification documents and any other relevant information to confirm their identity.
Anti-money laundering confidentiality in reports clause
This variation applies when confidentiality is required in reporting anti-money laundering matters.
Both parties agree to maintain the confidentiality of any anti-money laundering reports or findings. These reports will be shared only with authorized individuals or regulatory authorities as required by law, and will not be disclosed to any other parties.
Anti-money laundering transaction monitoring tools clause
This variation applies when both parties agree to implement transaction monitoring tools.
Both parties agree to implement automated transaction monitoring tools to detect and report suspicious activities. These tools will flag high-risk transactions and trigger further review to ensure compliance with anti-money laundering regulations.
Anti-money laundering risk-based approach clause
This variation applies when the parties agree to take a risk-based approach to anti-money laundering compliance.
Both parties agree to adopt a risk-based approach to anti-money laundering compliance, where the level of due diligence and monitoring will vary depending on the perceived risk of the transaction. Higher-risk transactions will be subject to enhanced scrutiny.
Anti-money laundering prevention of terrorist financing clause
This variation applies when the parties agree to prevent terrorist financing.
Both parties agree to ensure that none of the funds involved in transactions under this agreement are used to finance terrorism. This includes screening for known terrorist financiers and ensuring that no transactions violate anti-terrorist financing laws.
Anti-money laundering ongoing audit clause
This variation applies when the parties agree to conduct ongoing audits of anti-money laundering practices.
Both parties agree to conduct ongoing audits of their anti-money laundering compliance programs. These audits will assess the effectiveness of internal controls and ensure that any vulnerabilities in the system are addressed promptly.
Anti-money laundering fraud prevention clause
This variation applies when the parties agree to prevent fraud as part of their anti-money laundering efforts.
Both parties agree to implement measures to detect and prevent fraud, which is often linked to money laundering activities. These measures will include regular audits, transaction monitoring, and reporting any fraudulent activities to the appropriate authorities.
Anti-money laundering transaction blocking clause
This variation applies when the parties agree to block transactions that are deemed suspicious.
Both parties agree to block any transactions that are deemed suspicious or that do not meet anti-money laundering compliance standards. Such transactions will be reported to the relevant authorities, and no further action will be taken until the investigation is complete.
Anti-money laundering legal assistance clause
This variation applies when the parties agree to assist with legal matters related to anti-money laundering.
In the event of a legal investigation into money laundering or related crimes, both parties agree to provide full cooperation and assistance to legal authorities. This includes supplying relevant documents and records as requested during the investigation.
Anti-money laundering ownership transparency clause
This variation applies when transparency regarding ownership is required.
Both parties agree to disclose the beneficial ownership of any entities involved in transactions under this agreement. Full transparency regarding ownership and control is required to ensure compliance with anti-money laundering laws.
Anti-money laundering criminal history check clause
This variation applies when the parties agree to conduct criminal history checks.
Both parties agree to conduct criminal background checks on all employees or partners involved in the execution of this agreement to ensure they have no history of involvement in criminal activities related to money laundering or terrorist financing.
Anti-money laundering compliance action clause
This variation applies when a party must take action in case of non-compliance with anti-money laundering regulations.
If either party is found to be non-compliant with anti-money laundering regulations, the non-compliant party agrees to take immediate corrective action to rectify the issue. Failure to comply with corrective actions may result in the termination of the agreement.
Anti-money laundering customer risk rating clause
This variation applies when the parties agree to assign a risk rating to customers.
Both parties agree to assess the risk of money laundering associated with each customer by assigning a risk rating. High-risk customers will be subject to enhanced due diligence, including additional verification and monitoring measures.
Anti-money laundering financial institution reporting clause
This variation applies when financial institutions are required to report suspicious activities.
Both parties agree to require any financial institutions involved in this agreement to report any suspicious activities related to money laundering or terrorist financing to the relevant regulatory authorities in accordance with applicable laws.
Anti-money laundering compliance certificate for affiliates clause
This variation applies when affiliates are required to provide an anti-money laundering compliance certificate.
Both parties agree to ensure that any affiliates involved in the execution of this agreement provide a certificate of compliance with anti-money laundering laws. The certificate will confirm that all affiliates have implemented necessary compliance procedures.
Anti-money laundering transaction review clause
This variation applies when transactions will be reviewed for potential money laundering activities.
Both parties agree to review all transactions under this agreement for any signs of money laundering. Transactions flagged as suspicious will be subject to further investigation and will be reported to the appropriate authorities if necessary.
Anti-money laundering policy enforcement clause
This variation applies when the parties agree to enforce anti-money laundering policies consistently.
Both parties agree to enforce their respective anti-money laundering policies and procedures rigorously. Any deviations from the established procedures will be investigated, and corrective actions will be taken immediately.
Anti-money laundering information-sharing clause
This variation applies when the parties agree to share information about suspicious activities.
Both parties agree to share any relevant information regarding suspicious activities or transactions under this agreement. This includes sharing details with regulatory authorities or law enforcement agencies when required to comply with anti-money laundering laws.
Anti-money laundering funds tracing clause
This variation applies when the parties agree to trace the origin of funds involved in transactions.
Both parties agree to trace the source of funds for any high-risk or suspicious transactions to ensure that the funds are not derived from illegal activities. Any transaction that cannot be verified will be reported to the authorities.
Anti-money laundering verification of foreign transactions clause
This variation applies when the parties agree to verify foreign transactions for compliance.
Both parties agree to verify all foreign transactions to ensure compliance with international anti-money laundering regulations. This verification will include confirming the legitimacy of the source and destination of the funds involved.
Anti-money laundering compliance documentation clause
This variation applies when the parties are required to provide documentation of their compliance.
Both parties agree to provide documentation that verifies their adherence to anti-money laundering laws upon request. This documentation will include records of transactions, due diligence procedures, and compliance audits.
Anti-money laundering foreign correspondent bank clause
This variation applies when parties agree to monitor the involvement of foreign correspondent banks.
Both parties agree to monitor and verify the involvement of foreign correspondent banks in any transactions under this agreement. Any foreign bank that fails to comply with anti-money laundering regulations will be excluded from transactions.
Anti-money laundering suspicious activity transaction review clause
This variation applies when suspicious activities require further review.
Both parties agree to review any transactions that raise concerns related to money laundering or terrorist financing. Transactions deemed suspicious will be investigated, and relevant authorities will be notified immediately if required.
Anti-money laundering transaction delay clause
This variation applies when transactions are delayed due to anti-money laundering checks.
Both parties agree that transactions may be delayed if they are subject to anti-money laundering checks. Delays will occur if a transaction is flagged for further scrutiny or requires additional verification before completion.
Anti-money laundering jurisdiction-specific compliance clause
This variation applies when the parties agree to comply with jurisdiction-specific anti-money laundering requirements.
Both parties agree to comply with the specific anti-money laundering requirements of the jurisdictions in which they operate. This includes ensuring that all transactions adhere to local regulations and international best practices.
Anti-money laundering watchlist screening clause
This variation applies when the parties agree to screen customers against watchlists.
Both parties agree to screen all customers and parties involved in transactions against relevant international watchlists, including those maintained by the United Nations and the Office of Foreign Assets Control (OFAC), to identify any potential involvement in money laundering or terrorism financing.
Anti-money laundering reporting to tax authorities clause
This variation applies when suspicious transactions need to be reported to tax authorities.
Both parties agree to report any suspicious transactions to the relevant tax authorities, particularly when there is a possibility that the funds involved may be connected to illicit financial activities, including tax evasion or money laundering.
Anti-money laundering compliance verification clause
This variation applies when one party must verify the other party’s compliance with anti-money laundering laws.
[Party Name] agrees to verify [Other Party Name]’s compliance with anti-money laundering laws by reviewing their procedures, records, and transaction histories. This verification will be conducted at least annually to ensure continued adherence to all relevant regulations.
Anti-money laundering audit rights clause
This variation applies when one party has the right to audit the other party’s anti-money laundering compliance.
Both parties agree that [Party Name] has the right to audit [Other Party Name]’s anti-money laundering compliance procedures. The audit may include reviewing transaction records, customer identification processes, and any suspicious activity reports filed with authorities.
Anti-money laundering training and certification clause
This variation applies when the parties agree to provide anti-money laundering training and certification for their staff.
Both parties agree to provide anti-money laundering training to all relevant employees, ensuring they understand the regulations, detect suspicious activities, and know how to report any concerns. Employees must be certified after completing the training.
Anti-money laundering compliance monitoring system clause
This variation applies when the parties agree to implement a compliance monitoring system.
Both parties agree to implement a comprehensive compliance monitoring system that tracks financial transactions, flags suspicious activities, and ensures ongoing adherence to anti-money laundering regulations. The system will be updated regularly to adapt to regulatory changes.
Anti-money laundering cooperation with international regulators clause
This variation applies when the parties agree to cooperate with international regulators.
Both parties agree to cooperate fully with international regulators in the event of an investigation into money laundering activities. This includes providing relevant documents, transaction data, and customer information as requested by regulatory bodies.
Anti-money laundering transaction rejection clause
This variation applies when the parties agree to reject transactions that do not meet anti-money laundering standards.
Both parties agree to reject any transactions that do not meet the required anti-money laundering standards. This includes rejecting transactions involving high-risk countries or parties that are not fully compliant with verification and due diligence procedures.
Anti-money laundering compliance reporting clause
This variation applies when the parties agree to report on their anti-money laundering compliance efforts.
Both parties agree to submit regular reports detailing their anti-money laundering compliance efforts, including any actions taken to detect, prevent, or report suspicious activities. These reports will be submitted annually or upon request by regulatory authorities.
Anti-money laundering violation notification clause
This variation applies when a party must notify the other of a violation of anti-money laundering laws.
If either party becomes aware of a violation of anti-money laundering laws related to this agreement, they agree to notify the other party immediately. The notice will include details of the violation and any corrective actions taken or required.
Anti-money laundering investigation assistance clause
This variation applies when the parties agree to assist in anti-money laundering investigations.
Both parties agree to assist each other and law enforcement authorities in any investigation related to suspected money laundering or terrorist financing. This includes providing necessary documents, access to transaction data, and supporting any ongoing investigations.
Anti-money laundering ongoing due diligence clause
This variation applies when the parties agree to continue due diligence activities throughout the term of the agreement.
Both parties agree to continue conducting due diligence throughout the term of this agreement to ensure that no funds involved in transactions are sourced from illicit activities. This includes ongoing monitoring and periodic reviews of customer information and transaction histories.
Anti-money laundering higher risk transaction clause
This variation applies when higher-risk transactions require additional anti-money laundering checks.
Both parties agree to perform enhanced due diligence on higher-risk transactions, such as those involving large sums of money, foreign clients, or countries with weak anti-money laundering laws. These transactions will be subject to additional scrutiny and approval before processing.
Anti-money laundering disclosure of suspicious transactions clause
This variation applies when the parties agree to disclose suspicious transactions to authorities.
Both parties agree to disclose any suspicious transactions to the relevant authorities in accordance with anti-money laundering laws. Suspicious transactions will be reported promptly, and both parties will fully cooperate with law enforcement or regulatory investigations.
Anti-money laundering breach investigation clause
This variation applies when a breach of anti-money laundering regulations requires an internal investigation.
In the event of a suspected breach of anti-money laundering regulations, the parties agree to initiate an internal investigation to determine the nature of the breach. The investigation will include reviewing all relevant documents, communications, and transactions to identify any violations.
Anti-money laundering suspension of services clause
This variation applies when services are suspended due to suspected money laundering activities.
If either party suspects that the services provided under this agreement are being used to facilitate money laundering, they agree to suspend all activities related to the agreement until the issue is resolved. Both parties will cooperate fully to investigate the matter and resume services if compliance is confirmed.
Anti-money laundering transaction screening clause
This variation applies when the parties agree to screen all transactions for compliance.
Both parties agree to screen all transactions under this agreement against a list of red flags for money laundering activities, including unusual transaction amounts, countries of origin, and transaction types. Any flagged transactions will undergo enhanced scrutiny and be reported to authorities if necessary.
Anti-money laundering compliance audits by third parties clause
This variation applies when third-party auditors are hired to review anti-money laundering compliance.
Both parties agree to engage third-party auditors to review and assess their anti-money laundering compliance programs at regular intervals. The auditors will provide an independent assessment and recommend any necessary improvements to ensure full compliance with applicable laws.
Anti-money laundering temporary suspension clause
This variation applies when transactions or activities are temporarily suspended while a review is conducted.
Both parties agree to temporarily suspend any transactions or activities under this agreement if any party suspects money laundering or terrorist financing activities. The suspension will last until a thorough review is completed and the matter is resolved to both parties’ satisfaction.
Anti-money laundering data retention clause
This variation applies when the parties agree to retain data for a certain period for anti-money laundering purposes.
Both parties agree to retain records related to anti-money laundering compliance, including transaction data and due diligence reports, for a minimum of [X] years. These records will be available for review by authorities upon request.
Anti-money laundering jurisdiction-specific reporting clause
This variation applies when reports must be made to jurisdiction-specific regulators.
Both parties agree to report any suspicious transactions or money laundering activities to the relevant regulatory authorities in each jurisdiction where the transaction takes place. These reports will be made in compliance with local and international anti-money laundering regulations.
Anti-money laundering vendor compliance clause
This variation applies when the parties require vendors to comply with anti-money laundering laws.
Both parties agree to ensure that any vendors, contractors, or suppliers involved in transactions under this agreement comply with all applicable anti-money laundering laws. The parties will include anti-money laundering provisions in contracts with vendors to ensure their adherence to compliance standards.
Anti-money laundering monitoring system upgrade clause
This variation applies when the parties agree to upgrade their anti-money laundering monitoring systems.
Both parties agree to upgrade their anti-money laundering monitoring systems as necessary to reflect changes in regulations or the detection of new money laundering techniques. The upgrades will include enhanced features for transaction monitoring and reporting.
Anti-money laundering final audit clause
This variation applies when a final audit is required at the end of the agreement.
At the conclusion of this agreement, both parties agree to conduct a final audit to ensure compliance with anti-money laundering regulations. This audit will review all transactions conducted under the agreement and verify that no illicit activities occurred.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.