Clarks complies with all applicable laws and regulations relating to Anti Money Laundering (AML) & Sanctions in all jurisdictions where it conducts its business. Clarks have a zero-tolerance approach to any form of malpractice. This governs Clarks’ conduct in the UK and elsewhere in the world.
Money laundering is an offence and describes the process or act of disguising or hiding the original ownership of money, virtual currencies or works of art that has been obtained through criminal acts such as terrorism, corruption or fraud. Such assets are then moved through legitimate businesses and sources to make it appear 'clean'. Attempting to commit a money laundering offence is punishable, as is aiding and abetting.
Clarks can be vicariously liable for acts of money laundering committed for their benefit by an individual in a leading position, or which have been made possible by a lack of supervision or control (processes) of such an individual. Individuals involved in a serious money laundering offence can face an unlimited fine and be imprisoned for up to 14 years.
As a result of our risk assessment we have developed our policy to minimise the risk of money laundering activities within Clarks.
Clarks adheres to, and complies with, the principles of the Know Your Customer (KYC) which aims to prevent financial crime and money laundering through client identification and due diligence.
Due diligence is completed:
on every new customer
when you suspect money laundering or terrorist financing
where the customer has not been in regular contract with us for 18months or more
where customer circumstances change
The UK government publishes the UK sanctions list, which provisions must be adhered to and all new clients should be checked against this as part of onboarding.
To avoid any association with “designated names” which are set out in HM Treasury blacklists Clarks uses their “On-Board” software to screen our customers, third party payers, and suppliers. Verification of identification (ID) is also required. If satisfactory evidence is not provided, then the relationship or transaction will not proceed. Records are maintained for the duration of the contract/relationship. Ongoing monitoring is an intrinsic part of the Customer Due Diligence (CDD) process.
The Money Laundering Regulations (MLRs) require businesses to carry out enhanced monitoring of any business relationship or transaction involving a high-risk third country as well as with a person ‘established in’ a high-risk third country.
Clarks will not accept the receipt of any cash payments directly by a wholesale customer. Customer accounts are monitored to identify substantial overpayments or duplicate payments by suppliers.
Payment by third parties which are not pre-authorised is contrary to the terms and conditions of business with Clarks.
All employees are encouraged to ensure that any knowledge, suspicions or concerns that money laundering has occurred, or may occur, are reported to the Director of Compliance or Legal. Alternatively these can be reported through firstname.lastname@example.org.
We have an obligation to keep documents, data or information used for the purposes of applying CDD measures up to date and as per statutory retention. Our employees receive annual refresher training which includes identification of red flags.