Anti-Money Laundering and Counter-Terrorism Financing

This topic contains 1 reply, has 2 voices, and was last updated by Grant Holley Grant Holley 10 months ago.

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  • #5212 Reply

    Jo

    Are Fund Managers required to conduct ongoing CDD on mFund clients? Understand the FM is exempt from initial KYC for mFund, but am wondering if this exemption also applies to any ongoing diligence requirement.

    #5252 Reply
    Grant Holley
    Grant Holley
    Member

    The Anti-Money Laundering and Counter Terrorism Financing Act 2006 (Cth) (AML/CTF Act) regulates entities which provide one or more ‘designated services,’ as listed in s6 of the AML/CTF Act.  One of the designated services in s6 refers to issuing or selling an interest in a managed investment scheme.

     

    There are limited circumstances in which a Fund Manager is exempt from complying with customer due diligence requirements.  For example 21.3(1)(a) of the Anti-Money Laundering and Counter Terrorism Financing Rules grants a general exemption by s247 of the AML/CTF Act if an entity is selling shares in a fund on the ASX.

     

    However, more detail would be required to determine if a specific Managed Fund would be exempted from AML/CTF obligations, and we would be happy to provide tailored legal advice regarding your product.

     

    Author: Grant Holley (Partner)

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Reply To: Ongoing CDD and mFund

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