The new BISYS compliance program is designed to enable its hedge fund clients to fully comply with the proposed requirements. As part of the program, BISYS will provide an anti-money laundering compliance officer for each hedge fund, who will then be responsible for the assumption of all communication and filing requirements with the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Asset Control, according to a news release.
Further, the program supports hedge fund managers with measures to:
- augment their identity verification procedures
- monitor suspicious activities
- screen for high-risk investors listed on government watch lists.
To develop the program, BISYS researched the requirements of the USAPATRIOTAct and similar anti-money laundering regulations to establish its comprehensive service prior to the proposed compliance deadline. The new regulatory requirements, which were proposed by the FinCEN in September 2002, will expand the application of the Bank Secrecy Act to include a wide range of unregistered investment companies. The proposed regulations are expected to be finalized in 2003.