Are hedge funds basically money laundering operations? They take other people’s money “invest it” and charge a fee plus percentage of profits. Is that how money laundering works?
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Yes that is precisely how money laundering works
As someone in the industry, I can confirm this. In fact, our fund's biggest investor is the Sinaloa cartel, followed by the Tijuana cartel, followed by the state teachers retirement fund of Arkansas, and then a couple other weapons trafficking operations after that.
Money laundering is all about finding legitimate looking ways to get physical currency into bank accounts and/or other investments. Unless there are hedge funds that accept suitcases full of cash as deposits (I certainly don’t know of any), then no, they are not money laundering operations.
I highly recommend you binge Ozark on Netflix for a good primer on laundering.
I wouldn’t look into this any further
this is why we have those shitty compliance tests to do all the damn time
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