Gen II Fund Services’ Post

On 13 May the SEC and FinCEN proposed Customer Identification Program requirements for investment advisers. Key points to note include:   ➡ RIAs and ERAs would be required to apply an AML program and verify the identity of their customers. ➡ The Rule aims to prevent illicit finance activities through addressing the 'patchwork' of regulatory coverage in the sector.   ➡ Whilst it is not the first time these types of requirements have been proposed, the sector's rapid growth in the last decade combined with increased awareness of the risks associated with bad actors in the space, provides renewed impetus to bring the US's AML / CFT framework into line with international standards.   Louis Dodd discusses the key elements of the NPRM and the potential implications for the investment advisers which it covers. Read the full article here https://lnkd.in/e-kBgKa2   #KYC #CustomerIdentificationProgram #PrivateMarkets #AML #CFT

Combating Financial Crimes Together: Through unified efforts, global organizations are creating robust frameworks for AML and CFT, safeguarding our financial systems from illicit activities. To know more, visit: https://lnkd.in/g4CGHXcC #Compliance #FinancialSecurity #AML #CFT #GlobalStandards

Latest from FATF: The new report on virtual assets reveals critical gaps in global AML/CFT compliance. Despite some progress, many jurisdictions are falling short in implementing essential regulations, including the Travel Rule. With virtual assets continuing to pose risks from illicit finance to proliferation financing, urgent action is needed worldwide. Stay informed on the evolving landscape of AML/CFT standards for virtual assets. https://buff.ly/4fgSI63 #FATF #AML #VirtualAssets

FinCEN's proposed rule on AML/CFT programs is especially notable for requiring programs to be "effective." But, while purported to help financial institutions (e.g., by fostering innovation), there is a substantial risk a final rule could increase compliance burdens and be used as another enforcement tool. Read the attached to see why your financial institution should consider participating in FinCEN's comment process, which ends Sept. 3, 2024.

FinCEN recently issued a proposal to "Strengthen and Modernize Financial Institutions' AML/CFT programs" via the application of a risk-based approach. Our MLRO, Louis Dodd discusses: ➡ The key requirements outlined within the proposal; ➡ Its significance as part of a broader trend towards closer US alignment with international regulatory standards; and ➡ Steps fund managers can take to ensure their AML/CFT programs are compliance ready. Read the full article here - https://lnkd.in/eBeV3n56   #PrivateMarkets #AML #CFT #RiskBasedApproach

To strengthen understanding and vigilance against Trade-Based Money Laundering (TBML), here is an insightful case study. This case study highlights the intricacies of TBML schemes, emphasizing the importance of accurate invoice assessment and the role of AML analysts in detecting discrepancies. By reviewing this case study, one can enhance collective awareness and equip with the knowledge necessary to identify and mitigate TBML risks effectively. Please take the time to go through the attached document and share your thoughts and questions in comment box :) #TBML #EDD #TBMLCASESTUDY #MINDSHARE #AWARENESS

Asset allocators face several headwinds when it comes to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. In addition to regulatory compliance, the collection and storage of documents and time-sensitive trade-related KYC queries also place significant pressures on in-house operations teams. The Citco group of companies’ (Citco) AML and alternatives funds white paper delves into the four key challenges and how you can navigate them. Read the full report here: https://bit.ly/3zrThcK #KYC #KnowYourCustomer #AML #TheCitcoWay

FinCEN has issued a proposed rule that would make several changes to the AML/CFT regulations, as required by the Anti-Money Laundering Act of 2020. Visit https://lnkd.in/d7Ci5Ss to learn more!

📣 Important Update for Credit Institutions❗ 👉 An updated version of the Guidance Note on AML/CFT obligations linked to payment accounts with basic features has been issued today.  📅 With immediate effect, this updated Guidance Note repeals and replaces the previous version issued on 15th October 2018. Make sure you download and read our guidance document to ensure #compliance.

Stay informed and compliant with the latest insights on FinCEN's 2024 AML/CFT updates. Discover what you need to know about these changes effectively and protect your organization.