Business AML Template

BUSINESS AML TEMPLATE

Parties

Effective Date:

Recitals

WHEREAS, Client engages in commercial activities that may be subject to anti-money laundering and counter‑terrorist financing laws, regulations and obligations; and

WHEREAS, Service Provider has experience designing, implementing and monitoring anti‑money laundering programs and agrees to provide services necessary for Client to meet applicable AML obligations, including customer due diligence, recordkeeping, monitoring and suspicious activity reporting; and

WHEREAS, the parties desire to set forth the scope, fees, confidentiality and other terms under which Service Provider will deliver AML services to Client.

Scope of Work

Service Provider will perform the following services as part of the AML engagement. The description below is a non‑exhaustive statement of obligations; specific deliverables and timelines are described in the box provided.

Client and Business Information

Entity Type: Sole Proprietorship Corporation Limited Liability Company (LLC) Other

Customer Due Diligence & Program Requirements

Service Provider will assist Client in implementing policies for customer due diligence (CDD), enhanced due diligence (EDD) where applicable, transaction monitoring, suspicious activity identification and escalation. Client acknowledges and agrees to provide necessary access to records, personnel and systems to allow performance of these services.

CDD monetary threshold for routine enhanced review (if applicable):

Payment Terms

Client will pay Service Provider the fees set forth below in consideration for the services described in this Agreement.

Term and Termination

This Agreement commences on the start date below and continues until the end date below, unless earlier terminated as provided herein.

Start Date:    End Date:

Either party may terminate this Agreement for material breach if the breach is not cured within the notice period above. Termination does not relieve Client of obligations to pay fees accrued for work performed through the effective termination date nor obligations regarding confidentiality and record retention as set forth below.

Confidentiality

Each party shall maintain in confidence all non‑public information obtained from the other party in connection with this Agreement, including customer lists, transaction data, program documentation, internal controls and audit findings ("Confidential Information"). Confidential Information shall not include information that becomes public through no fault of the receiving party. The receiving party shall use Confidential Information only for performance under this Agreement and shall disclose it only to employees, subcontractors or advisors who have a need to know and who are bound by confidentiality obligations no less protective than those set forth herein.

Compliance, Reporting & Recordkeeping

Client represents and warrants that it will cooperate fully with Service Provider in implementing and maintaining AML controls, including furnishing requested documentation and access to personnel and systems. Service Provider will advise Client on identification of suspicious activity requiring escalation or report. Client retains final responsibility for filings or reports required by law and agrees to implement recommendations in a timely fashion.

Client shall retain records related to the AML program and customer due diligence for the period identified above in Record Retention Period and shall make such records available to regulatory authorities upon lawful request. Service Provider will maintain records of its advisory services consistent with professional standards.

Audit & Access

Client grants Service Provider the right to conduct reasonable audits and reviews of applicable systems and records to verify implementation of AML controls. Such access will be conducted during normal business hours and subject to Client's security policies. Findings and remediation recommendations will be delivered in writing.

Indemnification and Limitation of Liability

Client shall indemnify and hold harmless Service Provider from any claims, losses or liabilities arising from Client's failure to provide accurate information, implement recommended controls, or comply with law. Service Provider's liability for direct damages arising from its negligence in performing services shall be limited to amounts paid by Client to Service Provider under this Agreement in the twelve (12) months preceding the claim. Neither party will be liable for consequential or punitive damages, except as required by applicable law.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction identified below, without regard to conflict of law principles.

Entire Agreement

This Agreement, including all exhibits and attachments executed by the parties, constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and communications, whether written or oral. Any amendment to this Agreement must be in writing and signed by authorized representatives of both parties.

Acknowledgments

Each party represents that it has authority to enter into this Agreement, that it has read and understands the obligations set forth herein, and that it will comply with all applicable laws, including anti‑money laundering laws and regulations. The parties further acknowledge that Service Provider does not assume responsibility for Client's regulatory filings or regulatory compliance outside the scope of agreed services.

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