Hedge Fund Compliance Consulting
As a hedge fund manager, your risk management skills are tested every day in the marketplace. Increasingly, these skills are also challenged by federal and state examiners, the SEC, CFTC and law enforcement in an attempt to protect investors and potential investors.
Hedge funds today face a range of financial and non-financial risks that must be managed. CRI addresses these risks by providing in-depth market intelligence, anti-money laundering consulting and fund-manager due diligence services.
Since 1991, CRI has safeguarded the interests of financial services firms in their relationships with hedge funds, including prime brokerage and fund-of-fund activities.
Increasingly, sophisticated hedge funds require highly specialized expertise in the areas of compliance. CRI is able to provide exactly the skills you need without the large fixed overhead costs associated with building your own compliance staff. CRI consultants develop policy, draft procedures, prepare your team for the SEC of other government regulators, and provide specialized, detailed compliance training designed for your people and your risks.
The USA PATRIOT Act of 2001 and its enabling regulation will subject hedge funds to regulations similar to those governing banks and other financial institutions. Under the USA PATRIOT Act, hedge funds will be required to develop internal policies, procedures and controls that identify and prevent money-laundering (AML) activities. Hedge funds will also have to conduct antifraud training, designate a compliance officer and implement an independent audit program. CRI provides clients with a comprehensive program that includes a thorough risk assessment, AML compliance consulting, and AML intelligence services.
Hedge Fund Compliance with OFAC and List-Checking Rules
US and UK-chartered firms are required to consult government-maintained lists of suspected drug dealers, narcotics traffickers, terrorists, and other undesirable clients prior to booking an investment or making a disbursement. US law (Office of Foreign Assets Control, or OFAC) requires client screening and transactional filters so that the fund cannot process investments, disbursements or other transactions with several categories of prohibited client (residents of Cuba, Iran, North Korea). UK law, as well as that of many other developed economies, also requires regular screening and list checking. CRI can perform these monitoring services for you in real-time, 24/7 using our proprietary software systems.