Mutual fund complexes are beginning to realize that implementing anti-money laundering programs requires more than just flag-waving. In fact, the rules are complicated, expensive and, because they are being set in stages, confusing.

The USA Patriot Act, passed in October 2001, has forced the entire financial community to harvest all its resources to sniff out any suspicious activity that might indicate money is being funneled to terrorist operatives. As a result, fund houses are scrambling to upgrade their compliance teams to prevent being put at a disadvantage once implementation takes place.

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