Treasury Proposal May Mean New Push for Hedge Fund BSA Requirements, Say Consultants

By Matt Squire

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. Treasury Secretary Timothy Geithner unveiled a proposal Thursday that would put greater regulatory restrictions on over-the-counter derivatives, money market funds and hedge funds. Geithner also called for systemic oversight powers to be granted to a single regulator and more stringent capital requirements for some institutions. The proposal, which stops short of requiring hedge funds to develop Bank Secrecy Act (BSA) programs, would mandate that the funds register with the U.S. Securities...