Two U.S. senators called on regulators to close a “disconcerting loophole” that exempts hedge funds and other private investment firms from reporting suspicious activity within their transactions to authorities.
Sens. Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.) wrote a letter Tuesday to the heads of the Treasury Department and Securities and Exchange Commission (SEC) urging both agencies to re-examine the lack of anti-money laundering and countering the financing of terrorism (AML/CFT) obligations for the private investment industry.
