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...
Ahead of expected anti-money laundering regulations for investment advisers, some private equity firms may find themselves subject to such oversight for a reason few would have guessed: their fee structures.
It took over a year of negotiations but plans to impose EU anti-money laundering rules on U.S. hedge funds and private equity firms have officially been dropped, according to a European directive adopted Thursday.
Plans by the U.S. Treasury Department to revamp regulatory oversight of financial institutions will likely spur on efforts to impose anti-money laundering compliance requirements on hedge funds, say consultants.