Anti Money Laundering (AML) function is becoming a very crucial and important one in all jurisdictions. Whereas Directors of fund structures can undertake this role, most of the time this role is being outsourced to the appointed Fund Administrator. This has many advantages including:
One of the main benefits of outsourcing this function is the ability to have access to a team of experienced professionals with vast knowledge of all AML regulations in place. The appointed Money Laundering Reporting Officer (MLRO) would be the MLRO of the administrator itself and hence s/he would already have had exposure to all client funds. The administrator is also on the ground and close to the regulator through ongoing industry communication. They also have the advantage of communication with the regulator and would have gone through other on-site or off-site visits.
When this role is outsourced to the fund administrator, you’ll have peace of mind that should the present MLRO resign the company will provide another officer, hence making sure there’s continuity and no risks present to the fund.
Fund administrators invest heavily in the latest technology and tools to ensure that they are at the forefront of regulatory/AML compliance and offer the best services to their clients using the latest technologies, risk assessment tools, and monitoring systems.
The MLRO would be assisted by a team, making sure s/he has direct access to documentation and information, which also results in the timely processing of subscriptions/redemptions, reporting, and any other correspondence with the regulator as and when necessary.
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