Common use of Financial Compliance Clause in Contracts

Financial Compliance. 11.1 All Parties to this Agreement shall abide by all applicable national and international laws and regulations related to financial sanctions, anti-money laundering, and counter- terrorism financing for the purposes of long-term cooperation, mutual development, mutual goodwill, and financial compliance. The party making payments hereunder and its subsidiaries, directors, or senior management, or to the best of its knowledge, its Related Companies, agencies, employees, or employees of its subsidiaries (1) are not subjects or objects of financial sanctions, (2) are not held or controlled by subjects or objects of financial sanctions, and (3) did not involve in activities that may violate laws and regulations of anti-money laundering and counter-terrorism financing. The capital provided hereunder by the party making payments is not from or related to a sanction target, nor is it linked with any illegal activities. The party making payments shall not directly or indirectly use such capital in supporting any business or activity of a sanction target. If a party violates the aforementioned clauses, and as a result, the non-breaching party is punished or sanctioned by the relevant authority, the breaching party shall hold harmless and indemnify the non-breaching party from any financial losses arising from the negative impacts on the market, or any penalties, or compensations. The non-breaching party also has the right to terminate this Agreement.