LEAKED FBI REPORT REVEALS PRIVATE EQUITY UNDER ENHANCED MONEY LAUNDERING SCRUTINY

On 27 July, an article from Ballard Spahr said that a leaked FBI report said that the Bureau suspects that many investment vehicles, such as private equity firms and hedge funds, are widely utilised for money laundering.  The report from May is entitled “Threat Actors Likely Use Private Investment Funds to Launder Money, Circumventing Regulatory Tripwires”. The article says that the report uses some real-world examples to explain the process by which criminals are perceived to be infiltrating the global financial system using hedge funds and private equity firms, and how the current AML regulatory regime is ill-equipped to stop them. The Report sets forth this chart of how the BSA currently does and does not apply to players in the securities industry – the point being that hedge and private equity funds are lightly regulated:

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https://www.jdsupra.com/legalnews/leaked-fbi-report-reveals-private-43406/

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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