Reported by: Chris Cumming

Congress is considering a vast expansion of anti-money-laundering rules to private-equity firms and other businesses in an effort to stamp out dirty money in the financial system, people who work with lawmakers said.

A bipartisan group of senators is weighing whether to include in the annual defense appropriations bill the so-called Enablers Act, which would extend to private equity many of the restrictions on handling illicit funds that banks have to follow.

The House passed a similar measure earlier this year. Supporters on Capitol Hill view the Senate defense-spending measure—typically a “must-pass” piece of legislation with a year-end deadline—as the last chance to tighten money-laundering rules before a new Congress is sworn in next year.

The Enablers Act would require a range of businesses that handle potentially illicit cash—including lawyers, art dealers, accountants and financial advisers such as private-equity firms—to perform due diligence on their customers and file reports if they encounter anything suspicious.

The proposal has bipartisan support and influential backers. In late October, more than 80 advocacy groups, unions and other organizations sent letters to members of Congress in support of the measure, called the Establishing New Authorities for Businesses Laundering and Enabling Risks to Security Act. Many law-enforcement bodies favor the change on the grounds that it would make it easier to track down dirty money.

Read full report: https://www.wsj.com/amp/articles/senate-weighs-expansion-of-money-laundering-rules-11669743653