The Financial Crimes Enforcement Network (FinCEN) issued a final rule in September 2024 that strengthens anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements for certain investment advisers. The rule applies to registered investment advisers (RIAs) and exempt reporting advisers (ERAs) that are registered with the U.S. Securities and Exchange Commission (SEC). The rule takes effect on January 1, 2026.
The rule’s requirements include:
RIAs and ERAs must establish and implement a written AML/CFT program. The program must include internal policies, procedures, and controls to prevent money laundering and terrorist financing. The program must also include designating AML compliance officers, providing training, and independent testing the program’s effectiveness.
- Reporting
RIAs and ERAs must file suspicious activity reports (SARs) and other reports with FinCEN.
- Recordkeeping
RIAs and ERAs must comply with recordkeeping requirements.
- Information sharing
RIAs must share information with FinCEN, law enforcement, and certain financial institutions.
- Special measures
RIAs are subject to special measures imposed by FinCEN under the USA Patriot Act.
For many RIAs and ERAs, including those with existing AML programs, implementation of the final rule’s requirements will require significant attention and planning. It will not be feasible to implement these requirements through adoption of a template policy. Investment Advisers are strongly recommended to begin their implementation efforts early.
Compliance with the final rule will be complex and require individual consideration. If you have any questions, please consult info@cadienmayersconsulting.com
#InvestmentAdviser #IA #FinCEN #AML #newrule #newamlrule #IAAMLRule