Money Laundering Laws Compliance Representation and Warranty

Summary

This template may be used by an issuer to attest to its compliance with applicable money laundering laws and regulations. It is common in registered offerings for the issuer to provide this representation in the underwriting agreement. This template includes practical guidance and drafting notes. Recently, enforcement activity by authorities of federal and local money laundering laws has increased, resulting in civil and criminal penalties, including against underwriters. As a result, underwriters have placed increased importance on money laundering due diligence, including adding money laundering compliance representations and warranties to underwriting agreements, particularly in offerings for financial institutions such as banks and savings and loans. This template representation and warranty should be customized based on a company’s particular facts and circumstances. For information on anti-money laundering in the broker-dealer context, see Implementing an Broker-Dealer Anti-Money...