While the United States and other nations have had strong anti-money laundering (AML) laws applicable to certain financial institutions, including banks, securities broker-dealers and investment advisors, those laws have recently been strengthened and extended to other financial institutions including stand-alone clearing firms, marketmakers, customer intermediates and introducing brokers of currencies transactions worldwide. The USA PATRIOT Act of 2001 and U.S. Banking Privacy Act as Amended 2001 have extra-territorial provisions which govern U.S. Dollar denominated accounts anywhere in the world and therefore Stone Hedge FX Advisors within the scope of some of these laws.

Among other things, the USA PATRIOT Act of 2001 and U.S. Banking Privacy Act as Amended 2001 require financial institutions to establish anti-money laundering compliance programs, which include internal policies, procedures and controls designed to detect and prevent money laundering. The new requirements include enhanced "Know Your Customer" (KYC) obligations (e.g., verification of customer identity), monitoring and reporting suspicious transactions, special due diligence checks for certain customers, ongoing employee training, and record keeping.

The requirement to "know your customer" is one borne of sound business practices and established legal and regulatory oversight. Presently, industry regulations require firms to undertake reasonable efforts to obtain and maintain the essential facts relative to each customer and each account opened.

Accordingly, Stone Hedge FX Advisors has established governing principles and standards to protect itself, its businesses and its customers from being used to launder money. All Stone Hedge FX Advisors employees, and Algirdas Trading affiliates, wherever located, must be vigilant in the fight against money laundering and must not allow Stone Hedge FX Advisors to be used for money laundering activities. As a company engaged in the international investment products and services industry, it is incumbent upon Stone Hedge FX Advisors to join with the international business community to assure that its products and services are not the tool of terrorists or drug-dealers. Algirdas Trading has a clear responsibility to its customers on matters of confidentiality and privacy to which it must adhere.

It is Stone Hedge FX Advisors policy to protect and not divulge the personal or account information of any legitimate accountholder; it is also the policy of Stone Hedge FX Advisors to ascertain the true identity of each of its members. Stone Hedge FX Advisors must strike a fair and proper balance between its obligation to its customers for confidentiality and its legal and moral responsibility not to have its accounts used to unwittingly facilitate international terrorism or illegal money laundering.

Stone Hedge FX Advisors has implemented industry-best practices in anti-money laundering policies and procedures, which affect many aspects of our business and, in certain cases, the relationships with our customers. We ask that each prospective customer of Stone Hedge FX Advisors give his or her utmost understanding and assistance to us in our effort to fulfill this worthy and necessary goal.