The International Organisation on Securities Commissions (IOSCO) issued a consultation report on anti-money laundering guidance for Collective Investment Schemes (CIS).
This guidance is required to address the difference between “open-end” CIS and “exchange-listed” CIS, the distinctions between a CIS, its advisors and managers, and the intermediaries involved in distributing the CIS, with regard to their respective roles in verifying the identity of unit-holders in a CIS, potential low-risk situations, and the outsourcing to other entities, and reliance on other financial institutions with regard to the performance of certain anti-money laundering procedures.
IOSCO has adopted the principle that regulators should require securities market intermediaries to have in place policies and procedures designed to minimize the risk of the use of an intermediary’s business as a vehicle for money laundering. IOSCO subsequently endorsed principles to address the application of the client due diligence process in the securities industry (CIBO), and the Financial Action Task Force on Money Laundering (FATF) has issued 40 Recommendations on combating money laundering and the financing of terrorism. Additional clarification has been sought by the IOSCO Technical Committee on how to apply these global standards to the operation of collective investment schemes (CIS) in particular.
This guidance is intended to be consistent with, and to build upon, the IOSCO CIBO Principles and the FATF 40 Recommendations. It is not intended to supersede or conflict in any way with the IOSCO CIBO Principles or the FATF 40 Recommendations.
Comments are to be sent by 18 May 2005
Document
© IOSCO
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article