NEW YORK (HedgeWorld.com)–BISYS is launching a compliance program for its hedge fund clients wanting to make sure they are properly following provisions of the USA PATRIOT Act.

BISYS Hedge Fund Services teamed up with BISYS Fund Services and BISYS Regulatory Services to provide a full compliance program that includes identity verification procedures, suspicious activity monitoring and screens for high-risk investors listed on government watch lists.

In an announcement, BISYS officials said they would provide an anti-money laundering compliance officer for each hedge fund. The officer would assume all the communication and filing requirements with the U.S. Treasury Departments Financial Crimes Enforcement Network and the Office of Foreign Asset Control.

Tom Healy, president of BISYS Hedge Fund Services, said the new service has been very well received and BISYS expects to sign up clients ahead of the enactment of the PATRIOT Act. Officials are now in the process of having face-to-face meeting with clients about the new service.

Although the proposed regulations would not be finalized until later this year, BISYS and others already are selling their compliance tools. Compliance consulting firm Sum2 is offering a CD-ROM software package called PACO (PATRIOT Act Compliance Officer) that promises to help broker-dealers, hedge funds, commodity trading advisers and registered investment advisers meet the anti-money laundering compliance requirements of the PATRIOT Act . CorrectNet, which boasts fund administrators as its clients, might partner with Sum2 to offer the compliance services to its clients Previous HedgeWorld Story.

BISYS will be working with its regulatory service arm to sharpen its edge in offering PATRIOT Act-related consulting. The compliance work is done be former Securities and Exchange Commission; National Association of Securities Dealers and state regulators; compliance officers; and other industry professionals, according to BISYS.

BISYS Hedge Fund Services group was established in March 2002 following the acquisition of Hemisphere Group and is one of the largest administrators in the world Previous HedgeWorld Story. The group works with more than 200 clients that represent more than US$55 billion in assets and approximately 400 hedge funds, funds of funds and other alternative investment offerings.

SBarreto@HedgeWorld.com