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Anti money-laundering provisions

Following months of uncertainty, the US Treasury department issued a proposed final rule on the USA Patriot Act in September that excludes certain private equity funds from the obligation to comply with the anti money-laundering requirements. Nixon Peabody explains the new proposal and what it means for private equity firms.

The proposed rule would require only those companies meeting a defined set of criteria to comply with the AML provisions. Almost all private equity houses meet three of the four criteria but are exempt because they do not provide redemption rights within two years after the initial purchase.

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