Hedge Funds and anti-money laundering

There are 3 steps in the money laundering lifecycle: placement, layering and integration with hedge funds most likely to appear in the latter stages. Hedge funds are very susceptible to money laundering because they combine various traits in a single institution: secrecy, light regulation and rapid proliferation. These mean that launderers can move round a lot of money without attention. The advantage of having lots of money in hedge funds is that they can look legitimate although they may not be. Oracle Financial Services have the procedures in place to detect money laundering through link analysis, sequence matching and outlier detection. These methods can be implemented to detect money laundering in hedge funds.