US Bids to Boost Hedge Funds’ Anti-Money Laundering Defenses (1)

The US Treasury Department and the Securities and Exchange Commission proposed new rules that aim to keep investment funds from being used to launder money or fund terrorist activity.

US authorities said on Monday that they’re concerned investment advisers could be used by people outside the country to funnel money into the American financial system. The joint proposal would apply to hedge funds, private equity, venture capital firms and other money managers.

Gary Gensler, chair of the US Securities and Exchange Commission

Photographer: Samuel Corum/Bloomberg

Under the plan, firms would be required to collect information on the identities of their investors, including their names, dates of birth or date of formation ...