EU Directive Drafts U.S., Other Regulators to Certify Offshore Funds’ Compliance With European Regs

By Brian Monroe

A European Union bill that places anti-money laundering requirements on offshore investment vehicles and drafts their national regulators to certify their compliance with EU laws was approved Monday. The EU Parliament committee approved the Directive on Alternative Investment Fund Managers (DAIFM) in a 33 to 11 vote with three abstentions, putting it a step closer to becoming law. The bill would blacklist countries deemed noncompliant with European anti-money laundering (AML) and counter-terrorism financing standards, say analysts. It also expands which investment vehicles would be considered alternative, potentially extending the bill's provisions to pension and insurance funds. Under the legislation, non-European...