News

Federal investigators increasingly suspect that criminals are funneling illicit assets into the legal economy through hedge funds, one of only a few categories of financial services left that still fall outside the scope of U.S. anti-money laundering rules. The funds, which are pooled investment vehicles that typically require bank accounts to operate, must alert the U.S. Treasury Department when they receive $10,000 or more in cash from their clients but otherwise are not required to screen them, determine the source of their funds or report suspicious transactions. Though the "vast majority" of hedge funds operate legitimately, the FBI believes that...