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AML for small-cap funds – where's the line?
Starting to get my head around AML requirements for funds, and it seems like the heavy lifting is definitely for the big boys. But if you're managing a small, private fund, say under $50M, with a limited number of LPs, where does the real regulatory scrutiny begin to bite? Are smaller funds essentially flying under the radar until a certain AUM or number of investors triggers more formal (and expensive) compliance infrastructure?
1 comments · 1 points
Even with small funds, AML is less about AUM and more about the risk profile of your LPs and the source of their funds. Regulators don't really care about your fund size if you're exposed to a high-risk individual. That's where the bite is.