FBI Concerned About Money Laundering Risks in Private Equity Transactions
Leaked report highlights FBI’s growing attention towards private sector AML risks with advice for corporations to ensure proper due diligence
What Happened?
July 14, 2020: The $10-trillion private equity market in the U.S. is facing additional scrutiny as a vehicle for money laundering, according to the intelligence bulletin reported having been leaked from the FBI.
The document suggests that private investment funds lack adequate anti-money laundering programs and calls on regulators to enhance their screening efforts of the industry.
Who Is Impacted?
Private capital markets firms, investment funds, and equity firms, as well as their law firms and due diligence providers.
Why This Matters?
As the power and size of private capital markets increased, experts are expecting regulators to pay closer attention to corporate mergers and acquisitions transactions, angel investments, and private equity markets.
What’s Next?
While no public action has been taken by regulators, private capital markets continue to operate with little-to-no KYC friction. The leaked FBI document demonstrates the growing trend among law enforcement agencies and financial regulators to set new standards of AML compliance for all verticals of private capital markets.
learn more
Is your AML compliance too expensive, time-consuming, or ineffective?
iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.
Request a demo today.
Legal Entity Management, Streamlined: Meet iComplyKYC
Staying on top of corporate governance regulations can be one of the most time-consuming and costly aspects of running a business. However, this is essential to ensure your operations are compliant with all jurisdictional standards and run as smoothly as possible....
Identify and Protect: Digital Identity Verification with iComply
In a world increasingly reliant on mobile devices, tablets, and computers to navigate everyday life and business, identity verification is an invaluable asset for businesses when it comes to preventing fraud, money laundering, and terrorist funding. As cyber-crime...
Enhanced Due Diligence: When KYC and Customer Due Diligence Aren’t Enough
With recent advances in technology —such as facial recognition, biometrics screening, and natural language processing—making financial crimes like fraud and money laundering increasingly more elusive to detect, organizations within the finance, banking, and securities...
