Comment regarding payments from LCM Alliance LLP
September 6, 2017
Following reports about Ericsson receiving four payments in 2013 from a company called LCM Alliance LLP, the company wants to make the following comment:
Ericsson has investigated if these payments from 2013 are related to a contract and a customer and concluded that this is the case. Our customer has used a payment service provider, but why the payments ultimately came from the entity in question is still unknown to us.
Ericsson is a global company with customers in 180 countries and the company receives a great number of payments from different countries and in different currencies. It is challenging to fully control all incoming payments – anyone can pay amounts to accounts without the account holder's prior approval – but we do reconcile and allocate payments received to issued invoices so that we know when an invoice has been paid. In case a payment cannot be allocated to an invoice we would contact the sender to clarify the matter.
Ericsson is currently working on further improving the reconciliation and allocation ways of working, in order to achieve a more effective system for detecting and validating payments from senders with whom Ericsson has no contractual relationship, i.e. unknown senders, so that we can flag them to our banks.
Ericsson works closely with our banks in these respects. Ericsson supports anti-money laundering measures and the legal controls that require financial institutions and other regulated entities to prevent, detect, and report money laundering activities.