ANTI-MONEY LAUNDERING AND PRIVACY AMENDMENT
This ANTI-MONEY LAUNDERING AND PRIVACY AMENDMENT (this "Amendment")
amends as of the 24th day of July, 2002 (the "Effective Date"), the TRANSFER
AGENCY SERVICES AGREEMENT (the "Agreement"), dated as of December 18, 2000,
between AFBA 5Star Fund, Inc. (the "Company" or the "Fund") and PFPC Inc.
("PFPC").
For valuable consideration the receipt and sufficiency of which the
parties hereto hereby acknowledge, the Company and PFPC hereby agree that, as of
the Effective Date, the Agreement shall (without any further action by either of
the parities hereto) be amended as follows:
1. Privacy. As of the Effective Date, the Agreement is amended by adding the
following new provision:
"Privacy. Each party hereto acknowledges and agrees that, subject to
the reuse and re-disclosure provisions of Xxxxxxxxxx X-X, 00 XXX Part
248.11, it shall not disclose the non-public personal information of
investors in the Fund obtained under this agreement, except as
necessary to carry out the services set forth in this agreement or as
otherwise permitted by law or regulation."
2. Anti-Money Laundering. As of the Effective Date, the Agreement is amended by
adding the following new provision:
"Anti-Money Laundering. To the extent the other provisions of this
agreement require PFPC to establish, maintain and monitor accounts of
investors in the Fund consistent with securities laws, PFPC shall
perform reasonable actions necessary to help the Fund be in compliance
with United States Federal anti-money laundering ("AML") laws
applicable to investor activity, including the Bank Secrecy Act and the
PATRIOT Act, as follows: In this regard, PFPC shall: (a) establish and
implement written internal policies, procedures and controls reasonably
designed to help prevent the Fund from being used to launder money or
finance terrorist activities; (b) provide for independent testing, by
an employee who is not responsible for the operation of PFPC's AML
program or by an outside party, for compliance with PFPC's established
policies and procedures; (c) designate a person or persons responsible
for implementing and monitoring the operation and internal controls of
PFPC's AML program; and (d) provide ongoing training of PFPC personnel
relating to the prevention of money-laundering activities. Upon the
reasonable request of the Fund, PFPC shall provide to the Fund: (x) a
copy of PFPC's written AML policies and procedures (it being understood
such information is to be considered confidential and treated as such
and afforded all protections provided to confidential information under
this agreement); (y) at the option of PFPC, a copy of a written
assessment or report prepared by the party performing the independent
testing for compliance, or a summary thereof, or a certification that
the findings of the independent party are satisfactory; and (z) a
summary of the AML training provided for appropriate personnel. PFPC
agrees to permit inspections relating to its AML program by U.S.
Federal departments or regulatory agencies with appropriate
jurisdiction and to make available to examiners from such departments
or regulatory agencies such information and records relating to its AML
program as such examiners shall reasonably request."
3. General. This Amendment contains the entire understanding between the parties
with respect to the services contemplated hereby. Except as expressly set forth
herein, the Agreement shall remain unaffected hereby.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized officers, as of the day and year first above
written.
AFBA 5STAR FUND, INC.
By: /s/ Xxxx X. Xxxxxxx
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Name: Xxxx X. Xxxxxxx
Title: President
PFPC INC.
By: /s/ Xxxxx Xxxxxx
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Name: Xxxxx Xxxxxx
Title: Vice President
