FinCEN to Revive Proposed BSA Rules for Hedge Funds Within a Year, Says Director

By Colby Adams

The U.S. Treasury Department's financial intelligence unit will reintroduce a plan to subject investment advisers to Bank Secrecy Act compliance duties three years after abandoning a similar proposal, an official said Tuesday. Facing criticism from lawmakers and the industry, the department's Financial Crimes Enforcement Network (FinCEN) dropped proposed rules on the sector in October 2008, four years after originally pitching them. In a statement issued at the time, the bureau described the planned regulations as "dated." "Right now, we are in the process of revising our approach with respect to investment advisers," said FinCEN Director James Freis, in remarks delivered...