Putin The Arrogance of US Private Equity


Two years ago, a leaked FBI intelligence bulletin warned that a gap in U.S. rules aimed at fighting dirty money likely allows so-called “threat actors” to place funds with private investment firms. The FBI gave as an example of an unnamed New York-based private equity company that took in more than $100 million from a Russian business with alleged ties to organized crime.

This loophole has worried authorities for years because while banks and most securities brokers are required by law to identify the true owners behind investments and report any red flags, private equity firms, venture capital funds and hedge funds are not.