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The Securities Industry and Financial Markets Association’s (SIFMA) Anti-Money Laundering (AML) and Financial Crimes Committee today released its Anti-Money Laundering Suggested Due Diligence Practices for Hedge Funds (“Hedge Fund AML SDP”).
Hedge funds have become a significant player in the securities industry, drawing estimated investments of over one trillion dollars. The Hedge Fund AML SDP assists firms in addressing their AML responsibilities regarding appropriate levels of review and AML due diligence on their hedge fund clients.
The intent of the document is to provide general guidance that assists firms in evaluating a hedge fund customer, utilizing a risk-based approach. The Hedge Fund AML SDP provides valuable information to firms such as setting forth the characteristics of a hedge fund, describing typical relationships that exist between a hedge fund and a firm, and considerations regarding the level of AML due diligence that is reasonable to apply to a hedge fund customer.
The document can be found at:
http://www.sifma.org/assets/0/232/234/124802/9fecc8c8-6602-4233-bb97-98a52cc208c9.pdf
The SIFMA AML and Financial Crimes Committee would like to thank the SIFMA AML Hedge Fund Subcommittee and its Chair, Meg Zucker for their hard work in preparing this document.
