Business Client Alert: Federal Legislation Update- The USA PATRIOT Act and Applicability of Anti-Money Laundering Rules to Private Investment Companies/Funds
3/1/2002
This client alert describes the provisions of the International Money Laundering Abatement and Anti-Terrorist Act of 2001, which was signed into law by President Bush as part of the USA PATRIOT Act, and explains how this act will apply to and affect private investment companies and funds. The alert summarizes the background to the Act, discusses the implications that the completion of the required Investment Company Study will have on regulations for investment companies, and highlights the provisions of the Act that may be applicable to private investment funds. It also recommends to private investment funds that they comply with these provisions in order to avoid unwitting participation in money laundering activities and outlines the minimum steps that such funds should take to conform with these regulations.
