Media Coverage
Source: Compliance Week
Media Coverage
09.09.15
Compliance Week quotes Pillsbury’s Investment Funds partner Kim Mann and counsel Aaron Hutman on why the Treasury Department’s Financial Crimes Enforcement Network is proposing rules that would define some investment advisors as “financial institutions” and subject to anti-money laundering regulations.
“I think regulators take the view that this is incremental,” says Kim Mann, a partner with Pillsbury's corporate and securities practice. “Now that we have gotten more advisers registered and subjected to additional rules and regulations, this is just one more look inside advisers and their funds.”
Aaron Hutman added that the proposed rules could be a side effect of “a surge in the AML space outside of core banking.”
“Regulators have been hitting casinos for AML violations. They have gone after money services businesses and virtual currencies. There is real concern that there are more ways where money can slip through the cracks. Investment advisers are another opaque wall, behind which regulators would like to look and have confidence that there really is good oversight.”