AML/CFT requirements for Variable Capital Companies (VCC)
Differences in VCC requirements
There are, however, some unique differences as set out below:
- Due to the specific purpose for which a VCC is set up, it may not have employees to perform and undertake the relevant AML/CFT obligations. As such, a VCC is required to appoint an EFI for the purposes of conducting the necessary checks and performing the necessary measures in line with the requirements of the Notice from MAS. Though an EFI may be appointed, the VCC’s Board retains ultimate responsibility for the VCC’s compliance with the Notice.
- A VCC’s members are also its customers and will be subject to the due diligence requirements as set out in the Notice.
- Subject to certain exemptions, a VCC is required to maintain a register of its beneficial owners and nominee directors. Information in the respective registers should be updated no later than two business days after the information has been provided to the VCC. The registers are to be kept at the registered office of the VCC or the registered office of the EFI.
AML/CFT requirements for VCCs
Other controls include the need for VCCs to identify and know their customers (including beneficial owners), conduct regular account reviews, and monitor and report any suspicious transactions promptly. The AML/CFT requirements for VCCs include the requirement for internal policies and implementation of controls relating to:
- conducting a risk assessment and risk mitigation
- customer due diligence, including maintaining a register of beneficial owners
- reliance on third parties by the VCC’s EFI
- record keeping
- suspicious transaction reporting.
How Waystone Compliance Solutions can help
Waystone Compliance Solutions can assist VCCs with the provision of an AML Policy in addition to its incorporation, company secretarial services and ongoing compliance support. To find out more about how we can support you to achieve a successful VCC launch, please reach out to your usual Waystone representative or contact our APAC Compliance Solutions team below.