3. Phillips
Worldwide Anti-Money Laundering Policy. Phillips provided the Subcommittee with its AML policy (the "Phillips Policy"), which stated that Phillips employees "must report any knowledge or suspicion to the appropriate Phillips Anti-Money Laundering Officer, who then decides whether to make a report to the relevant authority."[1] The Phillips Policy first asks employees to require new clients to submit certain forms of government-issued identification.[2] The Phillips Policy also notes that "key questions to ask include:
- Is the consignor or buyer reluctant to provide personal information?
- Is there any suggestion that the client is evading, has evaded or will evade taxes?
- Who is the beneficial owner of the property if it is consigned by an off-shore company?"[3]
The Phillips Policy also includes a section entitled "Red Flags," which explains "if any of the following 'Red Flags' appear and there is no reasonable explanation for the particular Red Flag such that the employee is concerned about the client or transaction, the matter MUST be referred immediately in writing and by telephone to the appropriate Anti-Money Laundering Officer."[4] The Phillips Policy continues with a list of "what to look for," such as:
- Client provides unusual, inconsistent, or suspicious identification; and
- Clients from certain high risk jurisdictions, particularly if wanting to pay from a local bank (e.g., Iran, North Korea, Algeria, Myanmar, Syria, Indonesia, Yemen).[5]
While the Phillips Policy did not include instructions regarding compliance with sanctions, Counsel for Phillips explained that sanctions compliance was considered a component of Phillips anti-money laundering compliance program, noting Phillips' compliance training from as early as 2011 covered risks and compliance protocols related to sanctions.[6]
Phillips Briefing. Subcommittee staff received a briefing from Phillips General Counsel based in London.[7] He explained that the company's policies have developed over time.[8] He stated that Phillips generally followed what the rest of
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