Fundiligence

Implementing an AML/CFT Due Diligence Framework for Virtual Asset Investments. Virtual assets bring both opportunities and risks, making AML/CFT due diligence a key priority for AIFMs, investors, and regulators. Managing financial crime risks requires a strong approach that includes identifying high-risk transactions, verifying counterparties, and leveraging blockchain analytics. Key steps AIFMs should take to develop an effective AML/CFT framework for virtual asset investments. * Exclusive to newsletter subscribers - join for free * #AML #Virtualassets #Crypto #AIFM #Luxembourg

Tokenization in the fund industry: why it is the future but not yet the present, and a possible solution. Tokenization has the potential to revolutionize Luxembourg’s financial services sector and offering opportunities for fractional ownership, operational efficiencies, and liquidity. However, under the current regulatory framework, these benefits remain largely more theoretical than practical for the Luxembourg’s fund industry. In this article, three key use cases have been analyzed - RAIFs, UCITS funds, and real estate assets and a potential solution - to understand the opportunities and challenges of tokenization. #Tokenization #Investmentfund #Luxembourg #RAIF #UCITS #RealEstate

How Luxembourg can compete with Ireland for the UCITS market leadership. The competition between Luxembourg and Ireland for the UCITS market has increased over the recent years. Luxembourg, once leader in liquid assets, in now challenged by Ireland's more efficient regulatory processes and tax advantages. An analyze on strategies that Luxembourg could use to attract more UCITS funds, including tax incentives, enhanced digital infrastructure and improve regulatory procedures. #UCITS #Luxembourg #Ireland #Dublin #Investmentfund

DORA Explained: ICT Third-Party Risk Management Strategy (Part 3). This article introduces the essential elements of managing third-party ICT risks under the Digital Operational Resilience Act (DORA). It outlines how AIFMs can assess, mitigate, and monitor the risks posed by external ICT service providers, ensuring the resilience of critical functions against potential disruptions. Key components covered such as risk identification, contractual safeguards like Service-Level Agreements, and proactive measures like Disaster Recovery as a Service. #DigitalResilience #DORA #Luxembourg #AIFM

DORA Explained: ICT Third-Party Risk Management Strategy (Part 3). This article introduces the essential elements of managing third-party ICT risks under the Digital Operational Resilience Act (DORA). It outlines how AIFMs can assess, mitigate, and monitor the risks posed by external ICT service providers, ensuring the resilience of critical functions against potential disruptions. Key components covered such as risk identification, contractual safeguards like Service-Level Agreements, and proactive measures like Disaster Recovery as a Service. #AIFM #Luxembourg #DORA #ICT #DigitalOperationalResilienceAct

The European Securities and Markets Authority has issued an opinion on broker models under the Markets in #Crypto-Assets regulation (#MiCA). Key areas of the article include best execution practices, reinforcement of conflicts of interest mitigation, professional conduct, and secure custody of assets. #ESMA's latest opinion highlights significant challenges, especially concerning third-country firms trying to operate in the EU without adhering to regulations.

DORA explained: Principles of Proportionality and Due Diligence process (Part 1) In this article, we will introduce the Principles of Proportionality and explore how Compliance Officers must assess ICT dependencies based on their significance to operations, ensuring the measures match the level of risk. We will discuss the importance of identifying risks from non-substitutable ICT services to avoid over-reliance on single providers and prevent disruptions. #DORA #Compliance #ICTRiskManagement #CyberSecurity #EUCompliance

AML 6th Directive: impact on European football clubs and regulatory challenges. This article explores how the new directive, allowing member states to exempt certain low-risk clubs based on turnover, will impact clubs of all sizes of each European leagues. While aiming for a tailored approach, the directive's flexibility might cause inconsistencies across the EU, potentially creating regulatory loopholes. #Football #AML #Compliance #EURegulations

Choosing the right AML/KYC Software: Key Considerations and Factors to assess before the adoption of a tool. Read the latest article on Fundiligence. Key considerations for adopting these tools include: - Speed of Implementation: Quick deployment is crucial to meet urgent compliance needs. - Customization: Ensuring software flexibility to tailor solutions to specific operational needs. - Advanced Technologies: Utilizing AI, machine learning, and more to enhance the effectiveness of your AML strategies.

Third-Party Management Company: Independency, Oversight, and future scenarios. The article analyzes how third-party Management Companies offer significant advantages to leading asset managers and the fund industry by enhancing investor protection, adding layer of oversight, and reducing potential conflicts of interest. Additionally, the article highlights a trend towards fewer, bigger Super ManCos as mergers and acquisitions increase, potentially leading smaller players to exit the market. #Luxembourg #ManCo #AIFM #ThirdpartyManco #Governance #investorprotection #managementcompany #oversight