BISYS launches USA PATRIOT Act AML compliance program
BISYS has launched a comprehensive program designed to enable its hedge fund clients to fully comply with the proposed anti-money laundering regulations established by the USA PATRIOT Act.
The compliance program was developed through the collaborative resources of three divisions, namely BISYS Hedge Fund Services, BISYS Fund Services, and BISYS Regulatory Services.
The program supports hedge fund managers with the measures necessary to augment their identity verification procedures, more effectively monitor suspicious activities, and screen for high-risk investors listed on government watch lists.
As part of the program, BISYS will provide an anti-money laundering compliance officer for each hedge fund. This officer will 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.
BISYS proactively researched the requirements of the USA PATRIOT Act 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 finalised in 2003.
Bill Tomko, president of BISYS Investment Services, said: "The broad scope of the proposed anti-money laundering rules extends to unregistered investment companies, including most domestic and offshore hedge funds and fund of funds. Combining BISYS' hedge fund, legal, and technical compliance expertise enabled us to develop a comprehensive compliance program that meets the requirements of the proposed anti-money laundering rules. We can seamlessly integrate these services into our clients' day-to-day operations and compliance programs with minimal interruption to their routine business activities."
Tom Healy, president of BISYS Hedge Fund Services, said: "We believe that BISYS Hedge Fund Services offers the broadest anti-money laundering compliance program available to the unregistered investment company market segment. Our ability to leverage the respective expertise and resources of BISYS' three industry-leading business units led to the development of a comprehensive and competitively distinct compliance program that we believe will generate material benefits for our clients with the appropriate oversight and segregation of duties."
BISYS Regulatory Services will perform regular, independent reviews of compliance programs implemented to support the USA PATRIOT Act. BISYS Regulatory Services provides a broad range of consulting and outsourcing services that have enabled more than 1,100 brokerage and investment management organizations to respond to complex and evolving regulatory issues. These services, which are provided by former SEC, NASD, and state regulators; compliance officers; and other industry professionals enable BISYS' clients to reduce the costs traditionally associated with acquiring or developing these resources internally.
Background Note: BISYS Hedge Fund Services, which was established through BISYS' March 2002 acquisition of The Hemisphere Group, is the largest hedge fund administrator in Europe and second largest globally. Operating as a division of BISYS Investment Services, BISYS Hedge Fund Services provides an extensive range of outsourcing services, including fund accounting and valuation; director and corporate secretarial services; and legal, compliance, and taxation support. Through its service centers in New York, Boston, Bermuda, and Dublin, BISYS Hedge Fund Services currently supports approximately 200 clients representing more than US$55 billion in assets and approximately 400 hedge funds, fund of hedge funds, and other alternative investment products.
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