Share these talks and lectures with your colleagues
Invite colleaguesPractice paper
Challenges presented by AML in the areas of distribution, account opening and client relationships
Journal of Financial Compliance,
4
(4),
363-378
(2021)
Abstract
Anti-money laundering and counter-terrorist financing (AML/CTF) rules are currently undergoing fundamental changes. A comprehensive legal and regulatory framework has been put in place by lawmakers and national regulators, particularly in recent years. Market participants, however experience challenges when implementing this framework in their business models. These challenges have a range of causes: multifaceted business interests and needs of various market participants, differing levels of (legal) risk appetite to interpret and implement this framework and complex business models of different financial service providers, just to mention a few. The paper presents current challenges and possible solutions when implementing the AML/CTF rules in both distribution and account opening. In distribution, sub-distribution, global distribution, platforms, including settlement platforms, and private placement distribution set-ups are analysed from the AML/CTF perspective in addition to conventional distribution activities. The activity of the global distributor of the investment funds is also focused on. The paper also gives AML/CTF-relevant insights into the activities of UCITS management companies and AIF managers as well as into the delegation framework under Luxembourg law.
Keywords: distribution; sub-distribution; global distribution; platforms; private placement; account opening; UCITS management company; AIFM
The full article is available to subscribers to the journal.
Author's Biography
Vitali Schetle CFA, is Executive Director, Head of Legal Asset Management (Luxembourg) and Conducting Officer with a Luxembourg domiciled company that serves as a management company of undertakings for collective investment in transferable securities (UCITS) and an external manager of alternative investment funds (AIFs) for Luxembourg domiciled investment funds promoted by a Swiss Group. His responsibility area encompasses legal support and day-to-day management over the whole life cycle of both UCITS and AIFs as well as of both in-house and third-party funds (white labelling). Prior to joining his current firm, Vitali spent several years in the legal departments of Credit Suisse Asset Management and UBS Asset Management in Luxembourg. He studied physics at Novosibirsk State University (Russia) and law at ’Freie Universität’ in Berlin (Germany). He is eligible for a bar and holds a CFA charter. He is a cochairman of a working group ’Collateral Management’ and a member of a working group ’EMIR/OTC Derivatives’ with the Luxembourg Association of the Fund Industry (ALFI). In addition, Vitali is a member in the working group ’Practice Analysis Working Body’ at the CFA Institute. He is regularly invited to speak on conferences relating to investment funds taking place in Luxembourg, London and New York.
