CSC Releases AML and KYC Compliance Guide for Private Capital Fund Managers

Leading CSC fund administrator highlights key components of AML and KYC compliance for alternative investment managers

WEST ORANGE, N.J., March 22, 2022 /PRNewswire/ -- PEF Services LLC (PEF), a CSC company and a leading fund administrator for alternative investment managers, today announced the release of the white paper "AML and KYC Compliance: A Guide for Private Capital Fund Managers." Private capital funds have long been aware of anti-money laundering (AML) and know your customer (KYC) requirements. But while the underlying goal of these rules remains the same—to prevent and detect money laundering and counteract terrorist-funding activities—regulatory compliance has become a challenge for many firms.

After acquiring PEF in June 2021, CSC established itself as the highest-quality fund services provider in the U.S., and a leading global partner for alternative asset managers and capital markets participants. Drawing on CSC's extensive track record in AML and KYC compliance, this white paper highlights the key components of AML and KYC requirements that aids to satisfy not only the letter of the law but also the spirit of the law, address their importance to the alternative investment space, and explore cost-effective ways to manage the process.

The white paper covers:

• Six pillars of an AML and KYC program and their considerations for alternative investment
• Outsourcing the complexities of AML and KYC and service provider considerations
• AML and KYC Outsourcing Checklist: questions to ask when selecting a service provider

"In the U.S., regulators will introduce the most substantive changes to AML and KYC guidelines since the USA Patriot Act of 2001," says Chalene Ellis, CSC's director of operations and compliance for U.S. Fund Services. "These changing guidelines, combined with complex structures and new investment strategies, place added pressure on many general partners for transparency and drive an increased need for specific expertise."

It's critical to perform due diligence when selecting an expert provider once a company decides to outsource compliance. That includes knowing what to look for and understanding how specific jurisdictions mandate different rules. Given the global scale of changing requirements, expertise and experience in AML and KYC are key in selecting a service provider. Still, there are additional factors to weigh when outsourcing.

"For alternative investment firms, flexibility and a focus on the core business matter," says Jolanta Pastula, CSC's director of investor services for U.S. Fund Services. "So, it's not surprising that as fund administration grows in complexity, compliance outsourcing has become mainstream as higher head counts, greater expertise, and sophisticated technological resources are needed to keep pace with regulations."

This white paper is one in a series to support CSC's commitment to deliver valuable thought leadership content. The fund services white papers are available in the resources section of PEF's website.

About CSC

CSC, the world's leading provider of business, legal, tax, and digital brand services, acquired PEF Services LLC (PEF), a leading provider of technology-enabled fund administration services to private capital firms and their investors, including private equity, private debt, venture capital and U.S.-based SBICs, in June 2021.

By combining its global financial markets offering with PEF, CSC established itself as the highest-quality fund services provider in the U.S., and a leading global partner for alternative asset managers and capital markets participants. CSC offers a full suite of core and specialized services provided by industry experts and supported by ViewPoint, a purpose-built portal delivering greater visibility and real-time access to underlying investment performance data sourced directly from the official books and records of the fund.   

With more than a 20-year track record of delivering best-in-class solutions to funds and general partnerships, CSC focuses on meeting the unique administration and data needs of limited partners investing in illiquid alternative assets.

For more information about our services, visit cscgfm.com and pefservices.com.

For more information:
Jeff Lyons 
Public Relations Manager, CSC
(302) 636-5401 x65519 
[email protected] 
CSC News Room

Laura Hills 
Senior Vice President, CSC U.S. Fund Services  
(212) 203-4667 
[email protected]  

SOURCE PEF Services