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Anti-money laundering verification requirements

Introduction:  Our Legal Obligations

The Cayman Islands legal system incorporates anti-money laundering laws and regulations in accordance with modern international best practice.  The Company is required to obtain and keep on file extensive documentation of the identity of each investor.  In certain cases, it may be possible to rely on an exemption or on investor identification carried out by another regulated service provider, and the Company will do so where appropriate.

This Appendix 1 sets out the due diligence and investor requirements of the Company in accordance with the Cayman Islands Anti-Money Laundering Regulations (Regulations), the Cayman Islands Monetary Authority’s Guidance Notes on the Prevention and Detection of Money Laundering in the Cayman Islands and the policies of the Company.

Exemption for subscription debited from bank account in an Approved Country

If (a) the subscription payment is to be made by cheque or bankers draft or by any electronic means which is effective to transfer funds and the payment is clearly or on the face of it debited from an account in the investor's name at a bank registered in the Cayman Islands or that is regulated in and either based or incorporated in or formed under the laws of an “Approved Country” (current list appended), and (b) redemption proceeds will only be made on behalf of the investor to the same bank from which the subscription payment was made or directly to the investor, then no further identification is required unless specifically requested by or on behalf of the Company.  In the case of transfer by electronic means such bank must provide confirmation of such debit. If instructions for payment of redemption monies are varied so payment cannot be made in accordance with clause (b) of this paragraph, payment of redemption monies pursuant to a redemption notice will not be made until the identification requirements below are satisfied.

Exempt Investors

Detailed investor identification documentation may not be required in cases where appropriate evidence is obtained that:

1.           The investor is itself (or is a subsidiary of an entity which is) subject to the Regulations or is acting in the course of a business to which it is regulated by an Overseas Regulatory Authority and is based or incorporated in a jurisdiction with equivalent legislation (see list of Approved Countries appended);

2.           The investor is itself (or is a subsidiary of an entity which is) quoted or listed on the Cayman Islands Stock Exchange or other recognised exchange;

3.           The investor is a central or local government, statutory body or agency of government of an Approved Country;

4.           The investor is a pension fund for a professional association, trade union, or for employees of a government, regulated financial institution in an Approved Country, or a company that is publicly traded on a recognised exchange.  Satisfactory evidence that the investor falls within this category may be provided by a copy of a certificate of registration, approval or regulation by a government, regulatory or fiscal authority in the jurisdiction in which the investor is established

Eligible Introducers

Where the subscription payment or the investor does not fall within one of the foregoing exemptions, in many cases the most convenient way to satisfy the anti-money laundering requirements will be to obtain for the Company a confirmation (the Administrator will provide a form) from an Eligible Introducer.  An Eligible Introducer is usually a service provider in an Approved Country that is regulated in that country for money laundering purposes and which has carried out the due diligence on the client required under the anti-money laundering provisions of that country.  The Eligible Introducer Confirmation contains the name and address of the investor and confirmation that the service provider has obtained documentary evidence of the identity of the investor and will provide copies to the Company on request. 

If the Company cannot obtain evidence that the investor is exempt or was introduced by an Eligible Introducer, it will be necessary to provide the documents set out below in relation to the appropriate type of investor.

Information and Documentation Required

For an individual:

·         Full name

·         Nationality

·         Date of birth

·         Place of birth

·         Specimen signature

·         Permanent residential address

·         Occupation

·         A certified copy of the relevant pages of the individual’s passport, identity document or other official document showing the information detailed above, where applicable, as well as the individual’s photograph and signature.  The copy must be clear and legible including the photograph;

·         Certification (that the document is a true copy of the original and that the photograph is a true likeness) should be by a notary public, lawyer, bank or other professional.  The name and contact details of the certifier should be clearly stated.

·         Certified documentary evidence of the individual’s permanent residential address.  This evidence can take the form of a bank or credit card statement, utility bill, local telephone directory or can be confirmed in a reference letter from a respected professional.

·         A bank reference for the individual from an institution with which the individual has maintained a current relationship for at least two years.  The reference should be on original bank letterhead, addressed to the Company and signed by an authorised bank employee.

·         The Company may also request a professional reference from, for example, a lawyer or an accountant.

For a Company

·         Certified copy of the Certificate of Incorporation and any Change of Name Certificate, or equivalent in either case, for the corporate investor.

·         Certified copy of the Memorandum and Articles of Association, Bye-Laws, or other constitutional documents.

·         Certificate of Good Standing.

·         Description of the company’s activities.

·         Certified copy of the resolution or other authority to enter into the transaction.

·         Certified copies of any Powers of Attorney granted in relation to the investor.

·         Certified copy of the Register of Directors and Officers, or equivalent.

·         Certified copy of the Register of Members, or equivalent, or a listing of the names and addresses of each member holding 10% or greater interest in the investor.

·         For each authorised signatory, instructing party, and shareholder having a 10% or greater interest in the company, satisfactory client identity documentation as detailed above in the Requirements for Individuals or Requirements for Companies sections, as appropriate.

·         For at least two directors of the company, satisfactory client identity documentation as detailed above in the Requirements for Individuals or Requirements for Companies sections, as appropriate.

·         Annual Report or Financial Statements, preferably for the last two years.

For a Partnership or Unincorporated Entity

1.           If registered:

·         a photocopy of any Certificate of Registration or equivalent;

·         an original Certificate of Good Standing;  and,

·         a photocopy of the Partnership Agreement or other constitutional documents.

2.           If unregistered, a certified copy (by one of the partners or equivalent) of the constitutional documents.

3.           In either case, identification documents as described above in respect of at least two of the partners, owners or managers.

With regards to limited partnerships, clients identification documentation is required for each general partner and each limited partner holding a 10% interest or greater, to the extent they participate in the management of the partnership.

For Trusts

1.           If the Trustee or Executor is regulated for money laundering purposes by an approved regulatory authority (see list of Approved Countries below), verification by such authority or otherwise of the fact of regulation and, if applicable, incorporation and licensing of the trustee or executor.

2.           The same information as required above for individual investors (with appropriate variations for a deceased person) or corporate investors in respect of:

·                   the Trustee or Executor (if not regulated);

·                   the Settlor or original beneficial owner of the trust or estate assets;

·                   depending on the terms of the trust, any named non-discretionary Beneficiaries;  and,

·                   any Protector or other person on whose instructions or in accordance with whose wishes the trustee is prepared or accustomed to act or who may appoint and/or remove the Trustee or investment advisor to the Trust.

3.           An explanation of the source of the funds comprised in the estate or trust fund.

4.           For all trusts, a certified copy of the trust deed and any amendments.

 


 

 

LIST OF APPROVED COUNTRIES

Approved Country means a country that is recognised pursuant to the Cayman Islands Money Laundering Regulations, issued pursuant to the Proceeds of Crime Law, as having equivalent legislation to such Cayman Law and Regulations.  The current Approved Countries are:

Argentina

Germany

Luxembourg

Australia

Gibraltar

Malta

Austria

Greece

Netherlands

Bahamas

Guernsey

New Zealand

Bahrain

Hong Kong

Norway

Barbados

Iceland

Portugal

Belgium

India

Republic of China

Bermuda

Ireland

Singapore

Brazil

Isle of Man

Spain

British Virgin Islands

Israel

Sweden

Canada

Italy

Switzerland

Cyprus

Japan

United Arab Emirates

Denmark

Jersey

United Kingdom

Finland

Liechtenstein

United States of America

France