PREAMBLE
Sutherland operates under an institutional-grade advisory and execution framework. All operations conducted by the technology holding company, Sutherland Private Office SAS (Entity A), and its regulated execution subsidiary, Sutherland International Realty SAS (Entity B), strictly comply with the French Monetary and Financial Code (Code monétaire et financier), regulatory directives enforced by TRACFIN, the European Union’s Anti-Money Laundering Regulation (AMLR Single Rulebook), the oversight frameworks of the European Anti-Money Laundering Authority (AMLA), and the provisions of Loi Sapin II.
Access to the Sutherland OS and our proprietary asset data is restricted. We do not engage in speculative advisory or public retail dissemination. Prior to the authorization of any Private Inspection, the disclosure of forensic due diligence, or the structuring of a capital entry point, prospective acquirers must clear a mandatory, non-negotiable KYC and compliance protocol.
1. THE FIDUCIARY STANDARD, INDEPENDENT AUDIT & ANTI-CORRUPTION
Sutherland categorically rejects baseline regulatory minimums and the statutory allowance for Third-Party Reliance (Tierce Introduction) under Article L561-7 of the French Monetary and Financial Code. We do not recognize or rely upon external KYC audits conducted by retail banking institutions or third-party legal counsel. All prospective clients must submit to our proprietary, independent forensic audit, modeled on Tier-1 Private Bank Enhanced Due Diligence (EDD) standards.
Pursuant to Article L561-10 of the French Monetary and Financial Code, any prospective client, beneficial owner, or associated capital source classified as a Politically Exposed Person (PEP), or an immediate associate thereof, is subject to maximum-level EDD. The initiation of any advisory relationship with a PEP is strictly contingent upon formal Senior Management Approval.
Furthermore, pursuant to Loi Sapin II, Sutherland enforces a strict zero-tolerance Anti-Bribery and Corruption (ABC) policy. We categorically prohibit illicit facilitation payments, kickbacks, or any attempts to exert undue influence over public officials, notaries, or regulatory bodies.
2. CORPORATE OPACITY, UBO VERIFICATION & TAX TRANSPARENCY
Opacity is systematically rejected. Where the acquiring entity utilizes a complex holding structure—including, but not limited to, a French Société Civile Immobilière (SCI), SARL de famille, offshore trust, or private foundation — Sutherland mandates the complete unrolling of the corporate veil.
While the European statutory baseline requires UBO disclosure at 25%, Sutherland’s internal risk architecture mandates a strict, non-negotiable threshold of 10%. We require certified registry extracts and the forensic identification of all Ultimate Beneficial Owners holding a direct or indirect interest exceeding 10%. Furthermore, Sutherland enforces an absolute prohibition on corporate vehicles utilizing Bearer Shares (actions au porteur), unless such shares are demonstrably and legally immobilized within a regulated, Tier-1 depository.
Anti-Straw Man & Proxy Evasion Covenant (Interdiction de Prête-nom):
The prospective client, their legal representatives, and executing Family Offices execute an absolute, legally binding covenant under penalty of perjury that they are acting strictly as the ultimate economic beneficiaries of the transaction. Sutherland categorically prohibits the use of "Straw Men" (Prête-noms), front companies, or undisclosed proxy arrangements designed to circumvent international sanctions or obfuscate true capital ownership. Any detection of proxy evasion tactics will trigger an immediate, unnotified Suspicious Activity Report (SAR) to TRACFIN and the automatic termination of all mandates.
Sutherland does not facilitate tax evasion or aggressive regulatory arbitrage. Prospective clients must warrant that all corporate vehicles strictly adhere to cross-border tax transparency frameworks, including the Common Reporting Standard (CRS), the US Foreign Account Tax Compliance Act (FATCA), and the EU DAC6 directive regarding reportable cross-border arrangements.
3. CAPITAL VERIFICATION, NOTARIAL ESCROW & ONGOING DUE DILIGENCE (ODD)
Prospective clients must establish verified liquidity and a transparent origin of capital prior to the initiation of any structural tax modeling or asset acquisition strategy. This protocol requires institutional banking attestations and a coherent Source of Wealth (SoW) declaration.
Anti-Corruption & "Ill-Gotten Gains" (Biens Mal Acquis) Covenant: The prospective client executes an absolute, legally binding covenant under penalty of perjury that their capital origin is entirely insulated from state corruption, sovereign embezzlement, bribery, or illicit public procurement. Sutherland maintains a zero-tolerance framework against the deployment of "Ill-Gotten Gains" (Biens Mal Acquis). Should competent European or French authorities (e.g., Parquet National Financier) initiate asset confiscation proceedings against an acquired property due to the illicit sovereign origin of the client's funds, Sutherland shall be held fully harmless and indemnified against any civil, criminal, or reputational damages.
Sutherland’s internal KYC clearance is a strict, mandatory prerequisite before any capital can be authorized for transfer to the designated French Notary’s escrow account (compte séquestre). In the event of an internal compliance failure, Sutherland retains the statutory right to legally block the notarial execution.
KYC clearance is not a perpetual authorization. Sutherland enforces strict Ongoing Due Diligence (ODD) throughout the transaction lifecycle. We reserve the absolute right to freeze advisory services and demand refreshed proof of funds or Source of Wealth declarations at any juncture, triggered by macroeconomic shifts or algorithmic alerts.
Sutherland enforces a strict jurisdictional firewall. We categorically refuse to onboard entities domiciled in, or process capital routed through, jurisdictions designated on the FATF/GAFI Black or Grey lists, or the European Union’s list of High-Risk Third Countries, nor do we accept funds originating from or routed through Shell Banks (banques fictives).
Where capital origin is derived from digital assets, Sutherland mandates comprehensive blockchain forensics (e.g., Chainalysis). Pursuant to the 2026 EU Anti-Money Laundering Regulation (AMLR) and the Markets in Crypto-Assets (MiCA) "Travel Rule," Sutherland categorically refuses to accept proof of funds originating from, or held within, non-custodial or self-hosted hardware wallets (Unhosted Wallets), algorithmic mixers, or privacy protocols. Cryptographic liquidity is exclusively recognized if the assets are domiciled within a Tier-1 institutional Virtual Asset Service Provider (VASP) or Crypto-Asset Service Provider (CASP) holding a formal license from a recognized European or equivalent G7 regulatory authority. Any conversion to fiat currency must be executed exclusively through these regulated institutional bridges.
4. GLOBAL SANCTIONS, SECTORAL EMBARGOES & EU AI ACT COMPLIANCE
All prospective clients, beneficial owners, and associated capital sources are continuously and algorithmically cross-referenced against global geopolitical compliance databases. This includes strict adherence to the consolidated sanctions lists maintained by the United Nations (UN), the European Union (EU), the US Office of Foreign Assets Control (OFAC), and the French Directorate General of the Treasury (Direction générale du Trésor).
Our compliance architecture mandates strict adherence to EU Sectoral Sanctions and Embargoes, which explicitly prohibit the facilitation of luxury real estate acquisitions or capital deployment by restricted non-resident nationals and embargoed entities.
Pursuant to the European Union Artificial Intelligence Act (EU AI Act), while Sutherland deploys advanced algorithmic intelligence for geopolitical screening and risk stratification, we maintain a strict "Human-in-the-Loop" governance architecture. All fiduciary determinations—including statutory reporting, mandate termination, and asset freezing—are exclusively validated and executed by a certified human Compliance Officer. No statutory legal reporting is executed autonomously by artificial intelligence.
5. STATUTORY REPORTING OBLIGATIONS & THE TIPPING-OFF PROHIBITION
As the regulated execution subsidiary holding a professional license under the Loi Hoguet, Sutherland International Realty SAS (Entity B) maintains an absolute, non-negotiable legal obligation to monitor and report. Any transaction involving funds of illicit origin, or capital that lacks a verifiable source, will be reported directly to TRACFIN via a suspicious activity report (Déclaration de soupçon).
Pursuant to the strict "Tipping-Off Prohibition" under Article L561-19 of the French Monetary and Financial Code, Sutherland and its executives are legally barred from notifying the client, or any third party, that a TRACFIN disclosure has been filed or that a financial investigation is underway.
6. CHINESE WALL, DATA RETENTION & SECURE TRANSMISSION
Despite the capitalistic affiliation wherein Sutherland Private Office SAS (Entity A) acts as the parent entity, a strict structural bifurcation (Chinese Wall) is maintained. The parent entity acts as the Data Controller and operator of the sovereign infrastructure, processing and encrypting KYC data solely to enable its subsidiary, Sutherland International Realty SAS (Entity B), to execute its regulated brokerage functions and fulfill its statutory TRACFIN obligations.
In compliance with French anti-money laundering statutes, commercial liability frameworks (Article L110-4 of the Commercial Code), and tax defense mandates, KYC records of onboarded entities are retained within our secure sovereign infrastructure for a mandatory period of 10 years following the termination of the advisory relationship or the execution of a transaction. This regulatory retention mandate supersedes the "Right to be Forgotten" under the GDPR.
To ensure absolute data sovereignty, all KYC/AML documentation must be transmitted exclusively via the encrypted Sutherland Virtual Data Room (VDR), hosted on XXXXXXXXXX (country) sovereign infrastructure (XXXXXXXXX provider). Transmission of unencrypted compliance data via standard email protocols is prohibited.
For compliance escalations or institutional inquiries, designated legal counsel may contact our risk department at: compliance@sutherlandam.com.