Private Equity – an alternative investment for money launderers?

There can be no doubt amongst the compliance fraternity that money laundering, or more specifically the steps that should be taken to identify potential launderers, has shot to the top of the charts in recent months. As the systems of detection become more sophisticated, we can expect the criminals to diversify their laundering methods in an attempt to avoid them. Traditionally investors in private equity have seemed unlikely money launderers. Investment tends to be made by well-established players for the longer term with limited early access to their investment, but, warns Isabelle David of Apax Partners Ltd, this could change as the criminal seeks alternative markets.

Access to the private equity market

The private equity market can be accessed through different routes.