Common use of AML, CIP and Related Services Clause in Contracts

AML, CIP and Related Services. If required by the Administrator, with respect to each Fund domiciled within the United States (hereafter, the “Domestic Funds”), the Sub-Administrator will provide the following services: (a) Anti-Money Laundering (“AML”) Services. The Sub-Administrator shall perform reasonable actions necessary to help each Domestic Fund be in voluntarily compliance with Section 352 of the USA PATRIOT Act. Specifically, the Sub-Administrator shall: (i) establish and implement written internal policies, procedures and controls reasonably designed to help prevent a Domestic Fund from being used to launder money or finance terrorist activities; (ii) provide for independent testing, by an employee who is not responsible for the operation of the Sub-Administrator’s AML program or by an outside party, for compliance with the Sub-Administrator’s established AML policies and procedures; (iii) designate a person or persons responsible for implementing and monitoring the operation and internal controls of the Sub-Administrator’s AML program; and (iv) provide ongoing training of the Sub-Administrator personnel relating to the prevention of money-laundering activities. Upon the reasonable request of the Administrator or a Domestic Fund, the Sub-Administrator shall provide to the Administrator or the Domestic Fund, as applicable: (i) a copy of the Sub-Administrator’s written AML policies and procedures (it being understood such information is to be considered confidential and treated as such and afforded all protections provided to confidential information under this Agreement); and (ii) a summary of the AML training provided for appropriate personnel. The Sub-Administrator agrees to permit inspections relating to its AML program by governmental departments or regulatory agencies with appropriate jurisdiction and to make available to examiners such information and records relating to its AML program as such examiners shall reasonably request. (b) Customer Identification Program (“CIP”) Services. To help each Domestic Fund comply with its Customer Identification Program (which each Domestic Fund has undertaken to implement under regulations issued under Section 326 of the USA PATRIOT Act), the Sub-Administrator will do the following: (i) Implement procedures under which new accounts in the Domestic Fund are not established unless the Sub-Administrator has obtained the name, date of birth (for natural persons only), address and government-issued identification number (collectively, the “Data Elements”) for each corresponding Customer (“Customer”) (as defined in 31 CFR 103.131); (ii) Use collected Data Elements to attempt to reasonably verify the identity of each new Customer promptly before or after each corresponding new account is opened. Methods of verification may consist of non-documentary methods (for which the Sub-Administrator may use unaffiliated information vendors to assist with such verifications) and documentary methods (as permitted by 31 CFR 103.131), and may include procedures under which the Sub-Administrator personnel perform enhanced due diligence to verify the identities of Customers the identities of whom were not successfully verified through the first-level (which will typically be reliance on results obtained from an information vendor) verification process(es); (iii) Record the Data Elements and maintain records relating to verification of new Customers consistent with 31 CFR 103.131(b)(3); and (iv) Regularly report to the Domestic Fund about measures taken under (i)-(iii) above. Notwithstanding anything to the contrary, and without expanding the scope of the express language in this Section, the Sub-Administrator need not collect the Data Elements for (or verify) prospective customers (or accounts) beyond the requirements of relevant customer identification program regulations, and the Sub-Administrator need not perform any task that need not be performed for the Domestic Fund to be in compliance with relevant customer identification program regulations if the Domestic Fund was subject to mandatory rather than voluntary compliance with such regulations. The Sub-Administrator agrees to permit inspections relating to its AML program by U.S. Federal departments or regulatory agencies with appropriate jurisdiction and to make available to examiners from such departments or regulatory agencies such information and records relating to its AML program as such examiners shall reasonably request.