AMENDMENT TO
TRANSFER AGENT SERVICING AGREEMENT
This Amendment ("Amendment") is made as of April [ ], 2003 between LKCM
Funds (the "Trust"), an open-end management investment company registered under
the Investment Company Act of 1940, and U.S. Bancorp Fund Services, LLC
("Bancorp"). The parties hereby amend the Transfer Agency Agreement dated as of
________ ("Agreement"), as set forth below. Unless otherwise provided,
capitalized terms used herein shall have the same meanings given to such terms
in the Agreement.
WHEREAS, the Bank Secrecy Act, as amended by the USA PATRIOT Act, and the
regulations thereunder (collectively, the "Anti-Money Laundering Laws"), require
the Trust to develop and implement an anti-money laundering program; and
WHEREAS, the Trust has adopted the Anti-Money Laundering Program, dated
July 24, 2002, as revised April [ ], 2003, and as amended hereafter from time to
time ("AML Program") attached as Exhibit 1 hereto; and
WHEREAS, Bancorp carries out the duties set forth in the Agreement; and
WHEREAS, the Trust wishes to delegate certain aspects of the implementation
and operation of the Trust's AML Program to Bancorp; and
WHEREAS, Bancorp desires to accept such delegation.
NOW THEREFORE, in consideration of the mutual promises and covenants set
forth herein, the parties agree as follows:
1. Effectiveness of Agreement. This Amendment shall become effective
immediately as of the date first written above.
2. Delegation. The Trust hereby delegates to Bancorp, and Bancorp hereby
accepts, responsibility to perform certain services in connection with
the Trust's AML Program, as further set out in the AML Program,
including provisions relating to: (i) customer identification program;
(ii) suspicious activity monitoring and reporting; (iii) cash
transaction reporting; (iv) record keeping; and (v) employee training
(as it relates to Bancorp's employees) (collectively, the "AML
Services"). Bancorp further agrees to cooperate with the Trust's AML
Compliance Officer in the performance of the AML Services as set forth
in the AML Program.
3. Representations and Warranties by Bancorp. Bancorp represents and
warrants that:
a. Bancorp undertakes to perform all delegated responsibilities
under the Trust's AML Program; and
b. Bancorp has adopted and will maintain a written anti-money
laundering program ("Bancorp AMLP") that includes policies and
procedures that enable it to perform its responsibilities under
this Amendment.
4. Representations and Warranties by the Trust. The Trust represents and
warrants that:
a. The Trust will promptly provide Bancorp any amendment(s) to the
AML Program, which will be subject to the terms of this Amendment
upon delivery to Bancorp.
5. Consent to Examination. Bancorp hereby:
a. Agrees to provide, upon request by federal examiners, information
and records maintained by Bancorp relating to the AML Program for
purposes of the AML Program;
b. Agrees to provide, upon request by the Trust, information and
records maintained by Bancorp relating to the AML Services, and
the Bancorp AMLP as it applies to the AML Services;
c. Agrees to cooperate with the Trust's AML Compliance Officer with
respect to any request for information by the Financial Crimes
Enforcement Network pursuant to Anti-Money Laundering Laws; and
d. Consents to the inspection of Bancorp by federal examiners for
purposes of the AML Program.
6. Documents and Reports. Bancorp agrees to furnish to the Trust the
following:
a. A copy of the Bancorp AMLP as in effect on the date hereof, and
any material amendment thereto promptly after the adoption of any
such amendment;
b. No less frequently than annually, a report on the Bancorp AMLP
that includes a certification to the Trust concerning Bancorp's
implementation of, and ongoing compliance with, the Bancorp AMLP
and a summary of any audit report prepared with respect to the
Bancorp AMLP as it pertains to the AML Services.
c. Interim reports with respect to any material issues that arise
with respect to the AML Services or the Bancorp AMLP; and
d. Periodic reports concerning Bancorp's compliance with the Bancorp
AMLP and/or the AML Services at such times as may be reasonably
requested by the Trust's board of trustees or AML Compliance
Officer.
7. Miscellaneous. This Amendment may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Except as specifically set forth
herein, all other provisions of the Agreement shall remain in full force
and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
fully executed as of the day and year first written above.
LKCM FUNDS
By: _____________________________
Title: _____________________________
U.S. BANCORP FUND SERVICES, LLC
By: _____________________________
Title: _____________________________
Exhibit 1
LKCM FUNDS
ANTI-MONEY LAUNDERING PROGRAM
Adopted
July 24, 2002
Revised
April __, 2003
LKCM FUNDS
ANTI-MONEY LAUNDERING PROGRAM
INTRODUCTION
On October 26, 2001, the USA PATRIOT Act1 ("Act") became law. Title III of
the Act amended the Bank Secrecy Act ("BSA") to require all "financial
institutions" to develop and institute anti-money laundering programs that, at a
minimum:
o include internal policies, procedures, and controls;
o designate a compliance officer to administer and oversee the program;
o provide for ongoing employee training; and
o include an independent audit function to test the program.
Money laundering is a serious threat to all financial institutions. Money
laundering is generally defined as engaging in acts designed to conceal or
disguise the true origins of criminally derived proceeds so that the unlawful
proceeds appear to have been derived from legitimate origins or constitute
legitimate assets. Anti-money laundering programs may include protection against
terrorist financing, which involves an attempt to conceal the origin or intended
use of funds later be used for criminal purposes.
STATEMENT OF POLICY
The LKCM Funds (the "Trust") is committed to complying with all applicable
anti-money laundering laws and guarding against money laundering and the
financing of terrorist activities. The Trust shall take all reasonable steps and
exercise reasonable diligence to prevent the use of the Trust by money
launderers or to finance terrorist activities. To this end, the Trust has
developed this anti-money laundering program ("AML Program") to:
o protect the Trust against the risks of unscrupulous persons attempting
to fund terrorist or other criminal activities or launder the proceeds
of illegal activities through the Trust;
o conduct the business of the Trust in a manner consistent with
applicable laws and regulations designed to combat money laundering
and terrorist financing activities, including the oversight of
relevant third-party service providers, identified in Appendix A
("Service Providers"); and
o protect the Trust from potential liability under the Act.
ANTI-MONEY LAUNDERING COMPLIANCE OFFICER
Appointment. The Board of Trustees of the Trust (the "Board"), with advice
from the Trust's manager, shall appoint the Trust's AML Compliance Officer to
administer, oversee this AML Program. The AML Compliance Officer's contact
information is set forth in Appendix B.
Responsibilities. The AML Compliance Officer shall have overall
responsibility to administer and oversee this AML Program. The AML Compliance
Officer shall update this AML Program as necessary to accommodate changes in the
BSA, applicable regulatory requirements, or the Trust's business. The AML
Compliance Officer will keep the Board informed with respect to the AML Program
and issues that arise in connection with the Trust's anti-money laundering
efforts.
Reporting. The AML Compliance Officer shall report directly to [the Trust's
president/the Board].
SERVICE PROVIDERS
Delegation. Because the Trust's Service Providers process investor account
applications, approve and qualify prospective investors, and accept investor
funds, the Trust relies on its Service Providers to implement and operate
certain aspects of this AML Program on behalf of the Trust. Accordingly, the
Trust may delegate the implementation and operation of the following policies
and procedures under this AML Program to such Service Providers:
o customer identification program;
o suspicious activity monitoring and reporting;
o cash transaction reporting;
o certain record keeping duties; and
o employee training (collectively, "AML Services")
To effect this delegation, the Trust shall enter into appropriate
contractual arrangements with the relevant Service Providers, subject to the
Trust's overriding responsibility for assuring compliance with the Trust's AML
Program obligations. The Trust shall obtain the written consent of each such
Service Provider to permit federal examiners, such as the Securities and
Exchange Commission, to obtain information and records relating to the Service
Provider's delegated AML duties and to inspect the Service Provider for purposes
of this AML Program.
Review and Evaluation. The AML Compliance Officer shall periodically review
and evaluate each Service Provider's implementation of the AML Services as
necessary to assure compliance with the Trust's AML Program obligations. This
review shall include reviewing the Service Provider's anti-money laundering
program, or summary thereof, and other related information deemed appropriate by
the AML Compliance Officer based on all the facts and circumstances.
Customer Identification Program and Risk Assessment
Policy and General Procedures. Customer identification and verification
("CIP") shall be carried out by the relevant Service Provider, generally the
Trust's transfer agent, in accordance with the requirements of Section 326 of
the Act.2 The Service Provider's CIP shall verify the identity of customers to
the extent reasonable and practicable, consult lists of known terrorists and
maintain associated records. For purposes of CIP, the term "customer" means any
Trust shareholder of record who opens a new account with the Trust and any
person authorized to effect transactions in the shareholder of record's account
with the Trust.3
Prohibited Persons. As part of CIP, each relevant Service Provider shall
maintain procedures to ensure that the following persons are not accepted as
customers:
o any person or entity whose name appears on the List of Specially
Designated Nationals and Blocked Persons ("Blocked Persons List")
maintained by the U.S. Office of Foreign Assets Control ("OFAC") as
set forth at xxxx://xxx.xxxxx.xxx/xxxx;
o any person or entity who is located in or is a national of any country
appearing on the list of countries subject to OFAC-administered
sanctions ("Sanctioned Country List") as set forth at
xxxx://xxx.xxxxx.xxx/xxxx;
o any person or entity whose name appears on such other lists of
prohibited persons or entities as may be mandated by applicable law or
regulation; or
o any foreign shell bank.4
Each Service Provider shall verify on an ongoing basis, as appropriate,
that no Prohibited Person is a shareholder of the Trust. In the event a Service
Provider identifies a Prohibited Person as a shareholder of the Trust, the AML
Compliance Officer shall be notified immediately and the AML Compliance Officer
shall provide further direction with respect to the account, which may include
freezing the account if required by applicable law.
Risk-Based Determination. Service Providers shall consider the following
factors, among others, in assessing the money laundering risk posed by
particular customers or transactions, and the due diligence to be performed will
be such as the Service Provider believes is commensurate with the money
laundering risk posed. Factors to be considered in assessing money laundering
risk include:
o whether the customer is an individual, an intermediary, a public,
private or foreign corporation, a financial or non-financial
institution or a regulated person or non-regulated entity;
o whether the customer is an existing shareholder and, if so, the length
of time;
o how the customer became a customer;
o whether the customer's business is the type more likely to be
susceptible to illicit activity (e.g., cash intensive businesses);
o whether the customer resides in, is incorporated in or operates from a
jurisdiction with bank secrecy laws, or a jurisdiction that has
otherwise been identified as an area worthy of enhanced scrutiny;
o whether the customer is resident in, or organized or chartered under
the laws of, a jurisdiction that has been designated by the Secretary
of the Treasury under Section 311 or 312 of the Act as warranting
special measures due to money laundering concerns; and
o whether the customer's home country is (a) a member of the Financial
Action Task Force on Money Laundering ("FATF"), as set forth at
xxxx://xxx.xxxx.xxx/xxxx, (b) listed on the FATF List of
Non-Cooperative Countries and Territories, as set forth at
xxxx://xxx.xxxx.xxx/xxxx, (c) included in a Money Laundering Advisory
issued by Financial Crimes Enforcement Network ("FinCEN"), as set
forth at xxxx://xxx.xxxxxx.xxx, or (d) otherwise subject to anti-money
laundering controls, and the adequacy of those controls.
Suspicious Activity Monitoring and Reporting
Each relevant Service Provider shall monitor for any transaction or series
of transactions conducted or attempted by, at, or through the Trust, involving
or aggregating funds or other assets of at least $5,0005, and which the Trust or
the relevant Service Provider knows, suspects, or has reason to suspect:
o involves funds derived from illegal activity or is intended or
conducted in order to hide or disguise funds or assets derived from
illegal activity (including without limitation the ownership, nature,
source, location, or control of such funds or assets) as part of a
plan to violate or evade any federal law or regulation or to avoid any
transaction reporting requirement under federal law or regulation;
o is designed, whether through structuring or other means, to evade any
requirements of any regulations promulgated under the BSA;
o has no business or apparent lawful purpose or is not the sort in which
the particular client would normally be expected to engage, and
neither the relevant Service Provider nor the Trust knows of any
reasonable explanation for the transaction after examining the
available facts, including the background and possible purpose of the
transaction; or
o involves the use of the Trust to facilitate criminal activity
(collectively, the "Reporting Threshold").
Suspicious Activity in General. While a comprehensive definition of
suspicious activity is difficult, numerous "red flags" may trigger the need for
further inquiry with respect to a particular transaction. Suspicious activity
may include transactions involving assets of any type, including currency,
traveler's checks, negotiable instruments, securities, and wire transfers.
Typically, suspicious activity includes transactions that seek to hide or
disguise the ownership, nature, source, location, destination or control of the
funds. Suspicious activity can occur either at the outset of the customer
relationship or long after the relationship has been initiated. Transactions
should be viewed within the context of other account activity, and a
determination of whether a transaction is actually suspicious may depend on the
customer and the particular transaction.
Any transaction that appears to be suspicious shall be brought to the
attention of the appropriate supervisor or anti-money laundering compliance
officer at the relevant Service Provider for further investigation by the
Service Provider. The suspicious activity shall be investigated in accordance
with the relevant Service Provider's anti-money laundering program and the
results of the investigation shall be reported to the Trust's AML Compliance
Officer as permitted by law. The Service Provider shall file a Suspicious
Activity Report ("SAR") with FinCEN if the suspicious activity meets the
Reporting Threshold.
Reports of Cash Payments
The Trust does not, as a matter of policy, accept any cash payments in
connection with its business under any circumstances. Additionally, the Trust
does not accept any "cash equivalents," promissory notes and instruments in
bearer form in connection with the purchase of Trust shares. For the purpose of
this AML Program, the term "cash" means the currency or coin of the United
States and the term "cash equivalent" means traveler's checks, bank checks,
money orders, and cashier's checks.6
Recordkeeping by Service Providers
General Policy. Each Service Provider shall maintain all records made or
obtained pursuant to CIP until five years after the date the account of the
customer is closed or otherwise in accordance with Treasury regulations. In
addition, each Service Provider shall maintain all relevant records created or
obtained while carrying out AML Services including any documentation with
respect to any suspicious activity identified by the Service Provider and
documentation necessary to provide a basis for law enforcement authorities to
trace funds through the Trust.
Training of Service Provider Personnel
Policy. All relevant Service Provider personnel shall receive ongoing
anti-money laundering compliance training. Such training shall provide both a
general awareness of overall BSA requirements and money laundering issues, as
well as more job-specific guidance and shall at a minimum include BSA
requirements relevant to their functions and recognizing possible signs of money
laundering that could arise in the course of their duties. The level, frequency,
and focus of the training shall be determined by the responsibilities of the
relevant employee and the extent to which their functions bring them in contact
with BSA requirements or possible money laundering activity.
Timing. Training will be provided at the time an employee assumes duties
that bring them in contact with BSA requirements or possible money laundering
activity. Employees shall receive periodic updates and refreshers regarding
their anti-money laundering obligations and duties.
SUSPICIOUS ACTIVITY MONITORING AND
REPORTING BY THE TRUST
Suspicious Activity Monitoring and Investigation. The Trust will be
vigilant with respect to identifying any potentially suspicious activity. Any
employee or officer of the Trust shall contact the AML Compliance Officer as
soon as reasonably practicable after they learn of any suspicious activity.
Upon being informed about a possible suspicious activity the AML Compliance
Officer shall investigate and determine whether the facts and circumstances meet
the Reporting Threshold. The AML Compliance Officer shall investigate suspicious
transactions even if the $5,000 element of the Reporting Threshold has not been
triggered. In making this determination, the AML Compliance Officer shall
consider all known facts and circumstances relating to the transaction(s) and
the accounts in question. The AML Compliance Officer shall document the
investigation, as well as any action taken, including a determination that a
transaction was not deemed to be suspicious or require reporting via a SAR.
Whether or not the AML Compliance Officer determines that the filing of a
SAR is warranted, the AML Compliance Officer may designate the account(s)
involved as "Watch Account(s)" for continued observation. The AML Compliance
Officer, in consultation with legal counsel, may decide additional action
against the account is necessary.
Procedures for SAR Filing. If the AML Compliance Officer determines, after
conducting an investigation, that the Trust is required to file a SAR, the SAR
must be filed within 30 days of the date the Trust becomes aware of the
suspicious transaction. If no suspect is identified when the Trust becomes aware
of the suspicious transaction, a SAR must be filed within 60 days, rather than
30.
In situations involving violations that the AML Compliance Officer believes
require immediate attention, such as ongoing money laundering schemes, the AML
Compliance Officer shall immediately notify by telephone an appropriate law
enforcement authority and the SEC in addition to filing a SAR.
The information included in the SAR should be as accurate and complete as
possible. A standard reporting form, "Suspicious Activity Report by the
Securities and Futures Industry" ("FinCEN Form 101"), and instructions thereto
are available at xxxx://xxx.xxxxxx.xxx. Only FinCEN Form 101 is filed with
FinCEN. Supporting documentation shall not be sent to FinCEN.
Disclosure. Under no circumstances may the AML Compliance Officer, or any
employee, officer or Board member disclose a SAR filing to any other person
except as permitted or required by law. BSA regulations prohibit the Trust from
disclosing the filing or content of a SAR, even in response to subpoena. In the
event that a SAR filed by the Trust with FinCEN becomes subject to a subpoena,
the AML Compliance Officer must promptly notify FinCEN. The Trust will segregate
SAR filings and copies of supporting documentation from other Trust books and
records to avoid disclosing SAR filings.
INFORMATION SHARING
Information Sharing Between the Trust and the Government. The AML
Compliance Officer shall be the contact person in charge of responding to any
FinCEN request for information with regard to (i) any current account maintained
for a named suspect; (ii) any account maintained for a named suspect during the
preceding twelve months; and (iii) any transaction conducted by or on behalf of
a named suspect, or any transmittal of funds conducted in which a named suspect
was either the transmittor or the recipient, during the preceding six months,
that is required under law or regulation to be recorded by the Trust or is
recorded and maintained electronically by the Trust.
The AML Compliance Officer shall promptly perform a records search
responsive to a FinCEN or other request by an appropriate government authority.
If an account is identified, the AML Compliance Officer shall report to FinCEN,
in the manner and time frame specified in FinCEN's request, the following
information: (i) the name of such individual, entity or organization ("Person");
(ii) the number of each such account or, in the case of a transaction, the date
and type of each such transaction; and (iii) any social security number,
taxpayer identification number, passport number, date of birth, address, or
other similar identifying information provided by the Person when such account
was opened or each such transaction was conducted.
The Trust will not use the information provided by FinCEN in its request
for any purpose other than the following: (i) reporting back to FinCEN; (ii)
determining whether to establish or maintain an account or engage in a
transaction; or (iii) complying with the search request. The Trust will not
disclose to any person, other than FinCEN or the federal law enforcement agency
on whose behalf FinCEN is requesting information, the fact that FinCEN has
requested or has obtained information, except to the extent necessary to comply
with the request. Notwithstanding the foregoing, the Trust may share information
regarding a Person named in a request from FinCEN with another financial
institution, as set forth below, so long as such sharing does not disclose the
fact of the FinCEN request.
The AML Compliance Officer shall ensure that the Trust maintains adequate
procedures to protect the security and confidentiality of FinCEN requests for
information. The Trust is not required to take any future action, or to decline
to take action, with respect to the Person's account or transaction. Unless
specifically instructed to do so in the FinCEN request, the Trust is not
required to report on future account opening activity or transactions.
Information Sharing Between the Trust and Other Financial Institutions. By
filing the Notice for Purposes of Subsection 314(b) of the USA PATRIOT Act and
31 CFR 103.110 ("FinCEN Notice") on an annual basis, the Trust may share
information with another financial institution (e.g., bank, broker-dealer, or
mutual fund) or association of financial institutions regarding individuals,
entities, organizations or countries for purposes of identifying and, where
appropriate, reporting activities that the Trust suspects may involve terrorist
activity or money laundering. The AML Compliance Officer is responsible for
filing and renewing on an annual basis the FinCEN Notice with FinCEN, if the
Trust decides to share information. The Notice may be filed via the Internet at
xxxx://xxx.xxxxxx.xxx.
Prior to sharing information, the AML Compliance Officer must verify, by
either (i) direct request or (ii) referral to the FinCEN list of entities that
have filed such notices, that the other financial institution or association of
financial institutions has filed its FinCEN notice. Shared information may not
be used by the Trust for any purpose other than: (i) identifying and, where
appropriate, reporting on money laundering or terrorist activity; (ii)
determining whether to establish or maintain an account, or engage in a
transaction; or (iii) assisting the Trust in complying with a request from
FinCEN. The AML Compliance Officer will ensure that the Trust maintains adequate
procedures to protect the security and confidentiality of such information.
AUDIT
Required Annually. This AML Program shall be audited no less frequently
than annually in order to assure that the AML Program is functioning as
designed.
Independence Requirement. The audit may be performed by trained members of
the Trust's manager or an affiliate thereof or a Service Provider, provided that
the persons conducting the audit are independent of the personnel working in the
areas that are exposed to potential issues related to money laundering
activities, or by an independent third party. The audit personnel must be
knowledgeable regarding the requirements of the Act, the BSA and money
laundering activities.
Written Report. The auditor shall prepare a written report documenting the
results of the audit, including any deficiencies and recommendations for
enhanced compliance with the AML Program and the Act. Copies of the report shall
be provided to the AML Compliance Officer and the Board.
RECORDKEEPING
General. Records are maintained and retained by the Trust in order to (1)
provide an audit trail for law enforcement officials investigating potential
money laundering schemes and (2) document the Trust's compliance with all
applicable legal and regulatory requirements relating to money laundering and
terrorist financing.
Required Records. The AML Compliance Officer shall maintain and retain
records documenting the Trust's compliance with this AML Program, including:
o any SARs filed by the Trust, along with all supporting documentation;
o all documentation regarding any suspicious activity investigations by
the AML Compliance Officer;
o the minutes from any meeting of the Board at which this AML Program
was reviewed and approved or ratified;
o all records pertaining to the AML Compliance Officer's review and
evaluation with respect to each relevant Service Provider's
implementation of the AML Services; and
o the annual audit report regarding the AML Program.
Length of Time to Retain Records. The above records must be retained for a
period of five years from the event they document, or such other period as may
be required by law, in a readily accessible place. All SARs and related
documents must be retained for five years from the date of filing.
APPROVAL & REVIEW
Initial and Annual Approval. The Board shall approve or ratify the adoption
of this AML Program for the Trust and shall periodically review this AML
Program. The Board may request and evaluate such information as it deems
reasonable and appropriate in connection with its review and approval of this
AML Program.
Interim Amendments. Interim amendments to this AML Program may be adopted
as necessary to comply with legal requirements, subject to ratification by the
Board.
Record. Any approval or ratification shall be noted in the minutes of the
meeting at which such action was taken.
These procedures are based on the provisions of and regulations issued under the
USA PATRIOT Act of 2001, as they existed on March 31, 2003. Many of these
regulations are still in proposed form, and may be altered when finally adopted.
In addition, regulations have not yet been proposed to address a variety of
issues raised by the Act. In light of this uncertainty, these procedures reflect
our understanding of the law as it currently exists and reflect our
interpretations where the law is unclear. Accordingly, these procedures may
require revisions as new regulations are issued and pending regulations are
finalized.
Appendix A
THE TRUST'S SERVICE PROVIDERS
The following third-party service providers have been delegated the
implementation and operation of certain policies and procedures under this AML
Program:
U.S. Bancorp Fund Services, LLC ("Bancorp")
Transfer Agent and Fund Accountant
Bancorp's Anti-Money Laundering Officer
Name: Xxxx XxXxx
--------------------------------------------
E-Mail Address: xxxx.xxxxx@xxxxxxx.xxx
--------------------------------------------
Telephone Number: 000-000-0000
--------------------------------------------
Fax Number: 000-000-0000
--------------------------------------------
Quasar Distributors, LLC ("Quasar")
Principal Underwriter and Distributor
Quasar's Anti-Money Laundering Compliance Officer
Name: Xxxxx Xxxxxxxxx
--------------------------------------------
E-Mail Address: xxxxx.xxxxxxxxx@xxxxxx.xxx
--------------------------------------------
Telephone Number: 000-000-0000
--------------------------------------------
Fax Number: 000-000-0000
--------------------------------------------
Appendix B
LKCM FUNDS ANTI-MONEY LAUNDERING COMPLIANCE OFFICER
The following person serves as the Trust's AML Compliance Officer:
Name: Xxxxxx Xxxxxxxxxx
--------------------------------------------
Organization: Xxxxxx Xxxx Capital Management
--------------------------------------------
E-Mail Address: xxxxxxxxxxx@xxxx.xxx
--------------------------------------------
Telephone Number: 000-000-0000
--------------------------------------------
Fax Number: 000-000-0000
--------------------------------------------
Dated: July 24, 2002
--------------------------------------------------------------------------------
1 Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001.
2 The CIP will be revised in the future, as appropriate, once Section 326
regulations are adopted.
3 In the case of an omnibus account maintained with the Trust, the customer
is the entity maintaining the omnibus account with the Trust and not the
individual shareholders who open their accounts through an omnibus account
holder.
4 A foreign shell bank is a foreign bank without a physical presence in any
country. The Service Provider may determine that a foreign bank having no
physical presence in any country is acceptable as an investor if the bank
is (1) an affiliate of a depository institution, credit union, or foreign
bank that maintains a physical presence and (2) subject to supervision by a
banking authority in the country that regulates the affiliate described in
(1).
5 To identify transactions that aggregate to at least $5,000, it will be
necessary to evaluate transactions of less than $5,000.
6 The Trust relies on its Service Providers to properly document and report
any exceptions to this policy (i.e., file a Cash Transaction Report or
IRS/FinCEN Form 8300, as appropriate). The Trust shall file IRS/FinCEN Form
8300 with respect to any funds it receives directly, as appropriate and
required by law.
