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Communications from the Institute do not constitute, and should not be considered a substitute for, legal advice.
[18795]
April 21, 2005
TO: INTERNATIONAL OPERATIONS ADVISORY COMMITTEE No. 7-05
RE: DRAFT INSTITUTE COMMENT LETTER ON IOSCO’S AML CONSULTATION PAPER
Attached for your review is a draft comment letter to the International Organization of
Securities Commissions (IOSCO) in response to its consultation report on anti-money
laundering responsibilities for collective investment schemes (CIS), such as mutual funds. The
consultation report was issued in February.1
In general, the draft letter supports the report and commends IOSCO’s Technical
Committee on their work in this area. Despite that general support, however, the draft letter
expresses concerns over three aspects of the report:
• First, that the report overstates, in certain respects, the responsibility of CIS to verify
the identity of beneficial owners of accounts held by intermediaries;
• Second, that the report may inappropriately suggest that CIS should be treated like
securities firms with respect to the types of information they are expected to collect
from investors; and
• Third, that the report is overly prescriptive in the section dealing with the
performance of AML responsibilities by other financial institutions or service
providers.
Comments are due to IOSCO by May 18, 2005. If you have any comments on the draft
letter, please contact me at (202) 371-5430 or rcg@ici.org by Friday, March 6, 2005.
Robert C. Grohowski
Associate Counsel
Attachment (in .pdf format)
1 See Memorandum to International Committee No. 4-05, Money Laundering Rules Working Group No. 1-05, and
Transfer Agent Advisory Committee No. 7-05 [18635], dated March 8, 2005.