New Rules Will Force Buyout Firms to Flag Suspicious Investments – WSJ

After more than 20 years of debate, private-equity firms are about to be drafted into the fight against dirty money.

The Treasury Department on Feb. 13 proposed extending anti-money-laundering rules to investment advisers including private-equity, venture-capital and hedge-fund managers.

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Under the rules—which can take effect following a 60-day comment period—fund advisers including private-equity managers will have to start programs to prevent money laundering and keep records of customer cash flows. Most significantly, lawyers say, they will have to report suspicious transactions to the government.

Source: New Rules Will Force Buyout Firms to Flag Suspicious Investments – WSJ