(a) Effective July 24, 2002, each mutual
fund shall develop and implement a written anti-money laundering program
reasonably designed to prevent the mutual fund from being used for
money laundering or the financing of terrorist activities and to achieve
and monitor compliance with the applicable requirements of the Bank
Secrecy Act (31 U.S.C. 5311 et seq.), and the implementing
regulations promulgated thereunder by the Department of the Treasury.
Each mutual fund’s anti-money laundering program must be approved
in writing by its board of directors or trustees. A mutual fund shall
make its anti-money laundering program available for inspection by
the U.S. Securities and Exchange Commission.
(b) The anti-money
laundering program shall at a minimum:
(1) Establish and implement policies, procedures,
and internal controls reasonably designed to prevent the mutual fund
from being used for money laundering or the financing of terrorist
activities and to achieve compliance with the applicable provisions
of the Bank Secrecy Act and implementing regulations thereunder;
(2) Provide for independent testing
for compliance to be conducted by the mutual fund’s personnel or by
a qualified outside party;
(3) Designate
a person or persons responsible for implementing and monitoring the
operations and internal controls of the program;
(4) Provide ongoing training for appropriate
persons; and
(5) Implement appropriate
risk-based procedures for conducting ongoing customer due diligence,
to include, but not be limited to:
(i) Understanding the nature and purpose
of customer relationships for the purpose of developing a customer
risk profile; and
(ii) Conducting
ongoing monitoring to identify and report suspicious transactions
and, on a risk basis, to maintain and update customer information.
For purposes of this paragraph (b)(5)(ii), customer information shall
include information regarding the beneficial owners of legal entity
customers (as defined in section 1010.230 of this chapter).
