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Industry Updates

Investment Funds: Compliance with FATCA and Cayman Islands Anti-Money Laundering Requirements

30 Jan 2014

Compliance with regulatory requirements continues to be a key issue for the investment fund industry as investors and regulators seek greater transparency. With increased regulatory focus and sanctions, compliance is now even more important for firms that establish offshore investment fund structures.

The US Foreign Account Tax Compliance Act ("FATCA") introduced expansive new withholding and information reporting rules aimed at ensuring that US persons with financial assets outside the US are reporting correctly and paying US tax. The implication of the FATCA regulations on private equity and hedge funds is significant. In addition, most offshore investment fund structures are subject to local anti-money laundering ("AML") legislation. As the premier offshore jurisdiction for the establishment of alternative investment vehicles, the Cayman Islands has a robust and comprehensive regulatory and AML legislative framework in place, which has been assessed by international agencies as meeting the international requirements.

This shift toward AML best practice could now impact closed ended private equity vehicles which may not have previously considered their AML obligations. To better understand the possible implications of these new requirements and what your responsibilities are to ensure compliance, please click here.

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Regulatory & Compliance

Risk management and regulatory compliance have become key priorities for clients with both regulators and investors demanding greater transparency and enhanced reporting. Compliance with these obligations means ensuring a clear understanding of the ongoing requirements and often the aggregation, calculation, maintenance, reconciliation and submission of extensive data sets to various parties on a regular basis. The Maples Group has unrivalled expertise in regulatory matters, particularly in the field of anti-money laundering and counter-terrorist financing. We pride ourselves on our established relationships with regulatory bodies and have had significant involvement with the development of financial services law and policy both locally and internationally. Our ability to draw on this experience enables us to provide prompt, pertinent and clear advice that adds real value and helps our clients determine how best to maintain compliance across multiple jurisdictions.