BUSINESS I GLOBAL AWARENESS


and individuals including officers, directors, stockholders, employees or agents could be fined up to $100,000 and imprisonment up to 5 years. Without proper screening procedures, it is possible to engage in business with someone who is considered a PEP, putting you and your company at risk of violating the law.


What to look out for/Money Laundering Without participating in due diligence practices, it could be possibly to accidently bribe a PEP or Foreign Official when


engaging in business with a new country, or a new company. The bribing of public officials is considered money laundering under the expanded definition in the USA PATRIOT Act. An approximation by the International Monetary Fund estimates between 2% and 5% of global gross domestic product as laundered money, financing criminal enterprises and terrorism. Money laundering has been a criminal offense in the U.S. since the Money Laundering Control Act of 1986, however anti money laundering (AML) guidelines came into prominence after the September 11, 2001 attacks. Many countries worldwide have initiated their own Money Laundering legislation. The United Kingdom, and many other European countries have based their regulations direct on the EU directive 91/308/EEC, 2001/97/EC and 2005/60/EC, preventing the use of financial institutions for the purpose of money laundering and terrorist financing. The easiest way to ensure you company doesn’t contribute to money laundering is to Know Your Customer by screening potential companies and individuals to do business with.


Issue IX 2011 I www.solar-pv-management.com 41


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