Offshore confidentiality: another blow

Offshore private funds, especially Cayman hedge funds, may have been used widely by sophisticated US money launders, according to a report by Thomson Reuters. Thomson Reuters says FBI has opened an investigation.
FBI investigations can go on for a very long time. It is therefore likely no one will hear anything more about this story for many months, perhaps even years, to come. Nonetheless what the FBI is investigating could be explosive. And even if the FBI’s investigation does not lead to any charges it could still be another blow against offshore confidentiality.

On July 10 Thomson Reuters Regulatory Intelligence posted a story stating that the FBI ‘believes firms in the nearly $10-trillion private investment funds industry are being used as vehicles for laundering money at scale, according to a leaked intelligence bulletin prepared by the agency in May’.

To read more on this story see the July issue of The NED.