Decision Notice - Balkan Investment Opportunity Fund (2020-04-22)

Summary

This is a Decision Notice issued by CIMA against the Balkan Investment Opportunity Fund, cancelling its mutual fund registration under the Mutual Funds Law. It follows a 2017 Warning Notice and continued non-compliance by the Fund with statutory filing and anti-money laundering officer requirements.

• Mutual Funds Law breach: Failure to prepare and submit audited accounts to CIMA for the years ended 31 December 2009 through 31 December 2018, contrary to sections 8(1) and 8(2) of the Mutual Funds Law (2020 Revision).
• AML breaches: Failure to appoint a Money Laundering Compliance Officer (regulation 3(1)), a Money Laundering Reporting Officer (regulation 33(1)), and a Deputy Money Laundering Reporting Officer (regulation 33(2)) under the Anti-Money Laundering Regulations (2020 Revision).
• Action taken: CIMA cancelled the Fund's mutual fund registration pursuant to section 30(3)(a) of the Mutual Funds Law, on grounds under sections 30(1)(a), (ba) and (d) including likely inability to meet obligations, contravention of the Law and AMLRs, and failure to conduct direction and management in a fit and proper manner.

The decision is specific to this Fund and its directors; it does not impose new ongoing obligations on other regulated entities, but illustrates CIMA's enforcement approach to prolonged audit and AML officer non-compliance by mutual funds.

Applies to

mutual funds, directors of mutual funds

Deadlines

• 21 April 2020: Effective date of CIMA's decision to cancel the Fund's mutual fund registration.