Common use of PREVENTION OF MONEY LAUNDERING Clause in Contracts

PREVENTION OF MONEY LAUNDERING. The RIA shall use due diligence to learn the essential facts relative to every person or entity prior to making a recommendation for the purchase of Units and shall follow procedures that are at least equivalent to those required by the USA Patriot Act and regulations adopted thereunder on prevention of the use of the financial system for the purposes of money laundering as amended from time to time. In the event that XXX requires information or is required by any competent authority to provide information as to the identity of investors or in the event that any form of money laundering is suspected, the RIA agrees to make a full disclosure of such information to XXX and/or all appropriate authorities. Where the RIA is a resident in a country which is a member of the Financial Action Task Force, such disclosure shall be made to the extent provided by local law. The RIA will retain the evidence of verification of identity and records of all transactions for at least five years following the ending of the relationship with any person for whom recommendations for the subscription of Units have been affected. XXX reserves the right to seek and the RIA agrees to supply to XXX and/or any designated representative of them, without undue delay, such documentation as it may request in order to satisfy itself as to the essential facts relative to the RIA and any suspected or potential money laundering. If the RIA fails to supply such documentation as requested by XXX, each Issuer and/or representative of them within a reasonable period of time, this Agreement may be terminated at the sole discretion of XXX immediately in writing in accordance with clause 7 (except to the extent that XXX will not be required to give written notice of such termination). In the event that XXX and/or any representative of them is required by any competent authority to provide information as to the identity of the RIA or in the event that money laundering is suspected, the RIA agrees to make a full disclosure of all relevant information to XXX and/or all appropriate authorities. The RIA warrants and agrees to indemnify the Fund and XXX and hold the Fund and XXX harmless from and against all liabilities, losses, damages, claims and expenses, including attorneys' and other legal fees, in connection with the foregoing warranty.

PREVENTION OF MONEY LAUNDERING. The RIA shall use due diligence to learn the essential facts relative to every person or entity prior to making a recommendation for whom orders for the purchase of Units are effected or solicited advisory service clients’ accounts are accepted and shall follow procedures that are at least equivalent to those required by the USA Patriot Act and regulations adopted thereunder on prevention of the use of the financial system for the purposes of money laundering as amended from time to time. In the event that XXX PMG requires information or is required by any competent authority to provide information as to the identity of investors or in the event that any form of money laundering is suspected, the RIA agrees to make a full disclosure of such information to XXX PMG and/or all appropriate authorities. Where the RIA is a resident in a country which is a member of the Financial Action Task Force, such disclosure shall be made to the extent provided by local law. The RIA will retain the evidence of verification of identity and records of all transactions for at least five years following the ending of the relationship with any person for whom recommendations orders for the subscription of Units have been affected. XXX PMG reserves the right to seek and the RIA agrees to supply to XXX PMG and/or any designated representative of them, without undue delay, such documentation as it may request in order to satisfy itself as to the essential facts relative to the RIA and any suspected or potential money laundering. If the RIA fails to supply such documentation as requested by XXXPMG, each Issuer and/or representative of them within a reasonable period of time, this Agreement may be terminated at the sole discretion of XXX PMG immediately in writing in accordance with clause 7 (except to the extent that XXX PMG will not be required to give written notice of such termination). In the event that XXX PMG and/or any representative of them is required by any competent authority to provide information as to the identity of the RIA or in the event that money laundering is suspected, the RIA agrees to make a full disclosure of all relevant information to XXX PMG and/or all appropriate authorities. The RIA warrants and agrees to indemnify the Fund and XXX PMG and hold the Fund and XXX PMG harmless from and against all liabilities, losses, damages, claims and expenses, including attorneys' and other legal fees, in connection with the foregoing warranty.