How to AML
19.11.2024 – Articles
Anti-money laundering regulations have powerfully ramped up in recent years. But given the persistently tough fundraising conditions, often pushing funds towards non-institutional investors and new jurisdictions, keeping on top of AML rules is becoming increasingly difficult.
Here we dive into the overlapping AML challenges inundating alternative fund managers, and how they can position their firms to best manage and integrate them.
Microscope on private markets
In recent years regulators have turned a closer eye toward the alternatives market. Long perceived as an easier ground on which to launder money, the watch dogs have been intensifying scrutiny on private capital funds to close the gaps.
However, it appears the industry is struggling to keep up. According to Ocorian, 70% of managers have been fined for AML breaches. It’s worth noting this includes minor infractions, private warnings and restrictions.
Mark Spiers, partner at Bovill Newgate, says innocent or not, any breach can often lead to bigger regulatory problems and attention.