eTrade 2012 Annual Report Download - page 226

The FCPA and laws like it apply to all E*TRADE and all of its subsidiaries as well as to all E*TRADE employees, directors and
agents, regardless of citizenship or residency.
All E*TRADE employees, agents, representatives and consultants must comply with both parts of the FCPA. Violating any laws
governing corruption of foreign officials can result in severe civil and individual criminal penalties for both E*TRADE and the
responsible employee(s) or agent(s). In addition, any violation of the FCPA will result in discipline by the Company, up to and
including termination of employment. If you have any questions regarding the FCPA and similar laws generally, or any questions or
concerns about a specific transaction or payment, please contact the Legal Department immediately.
Economic Sanctions
E*TRADE policy requires compliance with economic sanctions imposed by OFAC in every country in which E*TRADE does
business. OFAC-imposed economic sanctions and restrictions may be directed at the governments of certain countries, designated
individuals or entities, as well as certain activities. Employees are required to take appropriate steps to comply with OFAC-imposed
economic sanctions, including being familiar with the various sanctions programs, operating within E*TRADE’s established
communication channels regarding sanctions programs, and performing adequate due diligence on their customers.
International Anti-Boycott Laws
U.S. law and E*TRADE prohibit participation in boycotts against countries friendly to the United States. Furthermore, violations of
the anti-boycott provisions are a criminal offense. Examples of activities that may be perceived as participating in a boycott include
refusing, or requiring another person to refuse, to do business with a boycotted country, its business concerns, its residents or
nationals. E*TRADE may be required to report these requests, even though the request was refused. All employees are required to
bring such requests immediately to the attention of Legal.
Anti-Money Laundering and Anti-Terrorism Laws
U.S. Anti-Money Laundering (“AML”) laws aim to prevent, detect and deter money laundering and terrorist financing. The term
“money laundering” covers any process designed to conceal the true origin and ownership of the proceeds of criminal activities that
changes the identity of illegally obtained money so that it appears to have originated from a legitimate source. The term “terrorist
financing” covers activities that are ideological rather than profit-based, which can include providing, collecting or using funds –
whether legitimately or illegally obtained – to carry out a terrorist act.
It is E*TRADE’s policy to comply fully with all federal and state laws and the laws of other countries concerning the prohibition of
money laundering and safeguard against the financing of terrorist activity, such as the Bank Secrecy Act, including regulations issued
pursuant to the USA PATRIOT Act of 2001; OFAC regulations; and related laws. To this end, employees must immediately report
any suspicious or unusual activity relating to any E*TRADE customer or employee by sending an email to AML Concern.
In addition to severe criminal and civil penalties, violations of anti-money laundering laws will result in disciplinary action, including
possible termination, and any act by or on behalf of E*TRADE or its employees that assists in money laundering could be a serious
criminal offense. Failure to report suspicions of money laundering to the relevant authorities also may constitute an offense and could
involve significant penalties for E*TRADE, as well as the individuals involved. Finally, employees are prohibited from alerting a
customer or other E*TRADE employees (outside of those responsible for managing the situation) of your suspicion, as this may also
be an offense in certain jurisdictions. Each regulated entity has developed comprehensive policies and procedures with respect to anti-
money laundering. For specific policies and procedures applicable to your business unit, send an email to AML Concern or review the
link below.
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