Articles By Topic
By Topic: Anti-Money Laundering
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From Vol. 5 No.7 (Feb. 16, 2012)
Do Hedge Funds Really Pose a Money Laundering Threat? A Decade of Regulatory False Starts Raises Questions
If terrorists and drug runners need to launder illicit gains, are hedge funds the perfect vehicle? Since 2001, regulators and legislators have debated subjecting hedge funds to anti-money laundering rules like those in place for banks, broker-dealers and other financial institutions. Despite the promulgation of specific rules and significant legislative pressure, hedge funds remain largely outside the purview of anti-money laundering regulations. Now, new moves from U.S. financial regulators suggest that, after a decade of false starts, hedge funds may be brought into the fold. The history of these proposed regulations sheds light on the question of whether hedge funds even pose the kind of threat the rules were designed to ameliorate. In a guest article, Michael B. Himmel and Matthew M. Oliver, both Members of Lowenstein Sandler PC, provide a comprehensive overview of U.S. anti-money laundering legislation and regulation over the past decade, and conclude with a discussion of recent anti-money laundering developments that have direct bearing on hedge funds, hedge fund managers and investors.
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From Vol. 5 No.4 (Jan. 26, 2012)
FinCEN Working on a Proposed Rule That Would Require Investment Advisers to Establish Anti-Money Laundering Programs and Report Suspicious Activity
On November 15, 2011, James H. Freis, Jr., Director of the Financial Crimes Enforcement Network (FinCEN), delivered remarks to the American Bankers Association/American Bar Association’s annual money laundering enforcement conference. 2011 was the fifth year in a row in which Freis delivered remarks to the annual gathering. See also “FinCEN Withdraws AML Rule Proposals for Alternative Investment Entities,” The Hedge Fund Law Report, Vol. 1, No. 25 (Nov. 26, 2008).
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From Vol. 1 No.25 (Nov. 26, 2008)
FinCEN Withdraws AML Rule Proposals for Alternative Investment Entities
The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) announced on October 30 that it had withdrawn three rule proposals it put forward in September 2002 and May 2003. We examine the background of the withdrawn rules, the reasons why they were withdrawn and the likelihood that they will resurface, in substance – and how all of this may affect hedge funds.
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From Vol. 1 No.1 (Mar. 3, 2008)
James H. Freis, Jr., Director of the Financial Crimes Enforcement Network (FinCEN), delivers speech to the Eighth Annual Florida International Bankers Association Anti-Money Laundering Compliance Conference
- FinCEN director spoke on the importance of private sector feedback in focusing FinCEN’s AML efforts on the highest risk areas. He addressed the following four areas:
- How FinCEN works to provide feedback to financial industry participants on the value of Bank Secrecy Act (BSA) data (provided in Suspicious Activity Reports (SARs) and Currency Transaction Reports) to law enforcement investigative efforts.
- How FinCEN analyzes data to identify emerging trends.
- How FinCEN formulates guidance for the financial community.
- How FinCEN pursues other outreach avenues.