Common use of AML Program Clause in Contracts

AML Program. PEATS and Custodian agree to cooperate in establishing, implementing, and maintaining an AML compliance program with respect to all Custodian PEATS Customers (the “AML Program”). PEATS and Custodian agree that such AML Program shall include at least the following: (i) a compliance program that satisfies FINRA Rule 3310 and all applicable U.S. anti-money laundering laws and regulations, which includes, without limitation: (1) reasonably designed policies, procedures, and internal controls to achieve compliance with the Bank Secrecy Act (“BSA”) and its implementing regulations; (2) a written Customer Identification Program (“CIP”) that complies with applicable law and regulations and includes procedures for: (A) obtaining Customer Identifying Information from each customer prior to account opening; (B) verifying the identity of each customer, to the extent reasonable and practicable, within a reasonable time before or after account opening; (C) making and maintaining a record of obtained information relating to identity verification; (D) determining, within a reasonable time after account opening or earlier, whether a customer appears on any list of known or suspected terrorist organizations designated by the U.S. Department of Treasury; and (E) providing each customer with adequate notice, prior to opening an account, that information is being requested to verify the customer’s identity; and (3) policies, procedures, and internal controls that comply with applicable anti-money laundering laws, including, without limitation, Rule 17a-8 under the Exchange Act. (ii) Custodian and PEATS agrees to cooperate to satisfy anti-money laundering requirements related to Custodial Services and related services to Custodian PEATS Customers, including but not limited to, by: (1) providing PEATS, upon request and where permissible, with information possessed by Custodian that PEATS requires in order to file required reports; (2) providing prompt notice to PEATS of any circumstances requiring Custodian to terminate a Custodial Account due to anti-money laundering reasons; (3) providing, as agreed to by the parties, PEATS access to certain AML tools, new account forms and templates, which may assist PEATS in meeting its anti-money laundering obligations; (4) submitting an annual notice to FinCEN concerning voluntary information sharing and complying with all requirements concerning the confidentiality of shared information, as permissible under Applicable Rules; (5) conducting enhanced due diligence on Custodial Accounts established or maintained for foreign financial institutions and private banking accounts established or maintained for non-U.S. persons to the extent required of Custodian by Section 312 of the USA PATRIOT Act and FinCEN guidance; (6) obtaining and reviewing certifications and re-certifications provided by PEATS regarding Custodial Accounts for foreign shell banks and closing all prohibited Custodial Accounts to the extent required of Custodian by sections 313 and 319 of the USA PATRIOT Act; (7) establishing and maintaining scanning procedures designed to comply with economic and trade sanctions administered by OFAC; (8) complying with all anti-money laundering provisions to the extent applicable to Custodian under applicable laws, rules and regulations, including Section 311 of the BSA (special measures for jurisdictions, financial institutions, or international transactions of primary money laundering concern), Section 326 of the BSA (verification of identification), Section 352 of the BSA (anti-money laundering programs), and Section 356 of the BSA (reporting of suspicious activities); and (9) filing, to the extent and when required of Custodian by Applicable Rules, all appropriate forms, including Forms CTR, CMIR and SAR SF.