Treasury, SEC, Fed Suggest Patriot Act Regs for Funds

The U.S. Treasury Department, the Securities and Exchange Commission and the Board of Governors of the Federal Reserve System have recommended to Congress ways to apply anti-money laundering regulations to mutual fund companies. The recommendations are intended to comply with the Patriot Act, aimed at cracking down on the financial networks of terrorists.

The agencies suggest methods for applying the Bank Secrecy Act, anti-money laundering legislation Congress approved in 1970, to investment companies, both those registered with the SEC and those that are not.