The U.S. Treasury Department could soon recommend tweaks to a Bank Secrecy Act regulatory proposal that's expected to foster the creation of dozens of equity-based funding companies. The proposal-a Securities and Exchange Commission (SEC) response to the 2012 JOBS Act-would permit the formation of so-called funding portals, a new type of business that would function as an intermediary in small equity offerings to non-accredited investors. To deter criminal abuse, the agency said it would impose anti-money laundering (AML) rules on the firms. The U.S. Financial Crimes Enforcement Network (FinCEN) is weighing a separate proposal that would expand the definition of...
Internet portals that facilitate crowd-sourced fundraising will need to spend tens of thousands of dollars to comply with anti-money laundering rules proposed by the U.S. regulator of broker-dealers, say industry consultants.
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