Common use of Prevention of Financial Crimes such as Money Laundering and Financing of Terrorist Activities Clause in Contracts

Prevention of Financial Crimes such as Money Laundering and Financing of Terrorist Activities. 27.1 The Bank will act in full compliance with all relevant laws and regulations of Japan and any foreign country, and requests by public organisations such as national governments and international organisations, having regard the international initiatives of the prevention of financial crimes such as money laundering and financing of terrorist activities. 27.2 In addition to Customer identity verification pursuant to Article 4 (Verification of Customer Identity), in order to verify the Customer's information and to understand details of a specific transaction, etc., in an appropriate manner, the Bank may request the Customer to provide confirmations or submit related documents, etc., by a deadline set by the Bank. If the Customer does not respond to the request by the time prescribed by the Bank without a legitimate reason, the Bank may limit all or part of transactions, such as deposit and remittance, etc., based on the Terms and Conditions. 27.3 When the Bank determines that in light of the Customer's response to a confirmation or document request pursuant to Article 27.2, the specific transaction details, the explanation of the transaction by the Customer, or other circumstances, a deposit is likely conflict with applicable laws and regulations, etc., of Japan or any foreign country concerning money laundering, financing of terrorism or economic sanctions, the Bank may limit all or part of transactions such as deposits and withdrawals, etc., based on the Terms and Conditions. 27.4 Even when transactions are limited pursuant to Article 27.2 and Article 27.3, if it is deemed that the risk of conflict with laws and regulations, etc., of Japan or any foreign country concerning money laundering, financing of terrorism or economic sanctions has been resolved based on the explanation of the Customer, etc., the Bank will promptly release the transaction limitations. 27.5 Neither the Bank nor any other HSBC Group Company will be liable for any loss (whether direct or consequential and including, without limitation, loss of profit or interest) or any damage suffered by the Customer or any third party arising out of: (i) any delay or failure by the Bank or any HSBC Group Company in processing any payment messages or other information or communications, or in performing any of its duties or other obligations in connection with the Current Account or any other account or the provision of any services to the Customer, caused in whole or in part by any steps which the Bank or any HSBC Group Company, in its sole and absolute discretion, considers appropriate to take in accordance with any laws, regulations and requests of public and regulatory authorities operating in various jurisdictions which relate to financial crimes such as, amongst other things, the prevention of money laundering, terrorist financing and the provision of financial and other services to any persons or entities which may be subject to sanctions; or (ii) The exercise of any of the Bank’s rights under this Article.