Private Equity Faces Calls for Tougher Rules Against Money Laundering

As Congress considers stricter measures against money laundering, advocates stress risks from fund advisers

Advocacy groups say dirty money is flooding through private-equity funds, raising the need for tighter rules at a time when U.S. regulators are training their sights on the buyout industry.

A collection of public-policy groups during a meeting Thursday urged the Biden administration to expand anti-money-laundering rules to cover private investment advisers, calling private-equity vehicles and hedge funds a vulnerability in the nation’s efforts to prevent criminals and adversaries from gaining access to the nation’s financial...