Australian Financial Services Licensing (AFSL) Forum

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  • #4711 Reply

    Run a small Wholesale fund for property development

    fund is illiquid but we are redeeming an investor due to hardship

    Investor has provided bank account details in different name.

    does ADI have an obligation to check the bank account details provided to ensure it is theirs?

    any help greatly appreciated

    #4716 Reply

    Hi Lidis,

     

    Thanks for the question.

     

    The fund’s obligations will depend on whether you are a reporting entity, and thus required to comply with the AML/CTF legislation. Additionally, you should be aware that refunding money to third parties represents an increase in ML/TF risk.

     

    In short, this is a complex legal question and a range of laws apply. We would recommend that you seek professional legal advice. Please feel free to contact our financial services team.

     

     

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Reply To: Illiquid Fund Redemptions

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