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HEDGE FUND ANTI MONEY LAUNDERING SERVICES |
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Anti-Money Laundering (AML) compliance in hedge funds has been largely limited to voluntary and/or self-imposed due diligence efforts combined with other ancillary AML oversight resulting from related compliance functions. Kahler Forensic Solutions (KFS) has been establishing itself as the leading edge in hedge fund AML compliance. We have, and continue to recognize that mandatory AML regulation in hedge funds will be implemented in the very near future. We offer cutting edge hedge fund AML compliance services and we will continue to closely monitor currently proposed legislation to offer mandatory regulatory services in the future. We have recently interviewed the drafters of "The Hedge Fund Transparency Act of 2009", U.S. Senator Grassley and The Office of U.S. Senator Levin for which corresponding articles will appear in two major publications in July 2009. The pertinent section of the HFTA for which we are focusing on include the establishment of an anti-money laundering program, and the reporting of suspicious transactions. Please see the HFTA excerpt below for more detail.
8 SEC. 4. ANTI–MONEY LAUNDERING OBLIGATIONS. (a) PURPOSE.—It is the purpose of this section to safeguard against the financing of terrorist organizations and money laundering. (b) IN GENERAL.—An investment company that relies on paragraph (6) or (7) of section 6(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-6(a)(6) and (7)), as amended by this Act, as the basis for an exemption under that Act shall establish an anti-money laundering program and shall report suspicious transactions under subsections (g) and (h) of section 5318 of title 31, United States Code. (c) RULEMAKING.— (1) IN GENERAL.—The Secretary of the Treasury, in consultation with the Chairman of the Securities and Exchange Commission and the Chairman of the Commodity Futures Trading Commission, shall, by rule, establish the policies, procedures, and controls necessary to carry out subsection (b). (2) CONTENTS.—The rule required by paragraph (1)— (A) shall require that each investment company that receives an exemption under paragraph (6) or (7) of section 6(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-6(a)(6) and (7)), as amended by this Act, shall— (i) use risk–based due diligence policies, procedures, and controls that are reasonably designed to ascertain the indentity of and evaluate any foreign person (including, where appropriate, the nominal and beneficial owner or beneficiary of a foreign corporation, partnership, trust, or other foreign entity) that supplies or plans to supply funds to be invested with the advice or assistance of such investment company; and (ii) be subject to section 5318(k)(2) of title 31, United States Code; and (B) may incorporate elements of the proposed rule for unregistered investment companies published in the Federal Register on September 26, 2002 (67 Fed. Reg. 60617) (relating to anti–money laundering programs).
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