Lawmakers Propose AML Controls for Hedge Funds

Senate lawmakers introduced a bill Thursday that would require hedge funds to implement anti-money laundering controls and answer to the Securities and Exchange Commission.
Sens. Charles Grassley, an Iowa Republican, and Carl Levin, a Michigan Democrat, introduced the bill to impose stricter regulatory oversight on a financial sector plagued by high-profile scandals. The lawmakers introduced separate, similar bills in 2007 that failed to progress in Congress.

Under the new measure, hedge funds would be required to establish anti-money laundering (AML) controls, designate an AML compliance officer and report suspicious transactions to the U.S. Treasury Department. The department would work with the SEC and Commodities Futures Trading Commission to establish related regulations.

"If the events of the last year have taught us anything, it's that we need to regulate firms that are big enough to destabilize our economy if they fail,” said Levin, in a statement. “It's time to subject financial heavyweights like hedge funds to federal regulation and oversight to protect our investors, markets and financial system."

Lead investigator in Lloyds TSB case to speak at AML Conference in Florida

Adam S. Kaufmann, Chief of Investigations of the Central Division at the New York County District Attorney’s Office, and a lead investigator in the case that resulted in the deferred prosecution agreement with Lloyds TSB, will be giving a special presentation at the moneylaundering.com 14th Annual International Conference, from March 16-18, 2009 at the Westin Diplomat Resort in Hollywood, Florida..

Most recently, Mr. Kaufmann and his staff pursued a joint investigation with the U.S. Department of Justice into the handling of international payments by foreign banks on behalf of banned or sanctioned Iranian entities. To date, this investigation has led to a deferred prosecution agreement and settlement with Lloyds TSB, in which the bank paid $350 million in penalties.