The Financial Crimes Enforcement Network today announced it intends to postpone the effective date of a new rule to require certain investment advisers to comply with Bank Secrecy Act regulations so it can revisit the scope of the requirement. In addition, the agency intends to revisit a joint proposal with the Securities and Exchange Commission to require investment advisers to comply with customer identification program rule requirements.
Under the investment adviser rule, covered advisers will need to implement risk-based anti-money laundering/countering the financing of terrorism programs, report suspicious activity to FinCEN and fulfill recordkeeping requirements. The rule was scheduled to take effect Jan. 1, 2026, but FinCEN said it anticipates pushing that date back two years to Jan. 1, 2028.
FinCEN also plans to revisit a proposed rule to require SEC-registered investment advisers to adopt CIP requirements.
The postponed rule “seeks to address ongoing illicit finance risks, threats and vulnerabilities posed by criminals and foreign adversaries that exploit the U.S. financial system and assets through investment advisers,” according to a statement. “FinCEN recognizes, however, that the rule must be effectively tailored to the diverse business models and risk profiles of the investment adviser sector.”
In a comment letter last year, the American Bankers Association urged FinCEN to further refine the investment adviser rule and a similar rule governing certain residential real estate transactions to avoid unintentionally sweeping in banks and trust companies already subject to robust BSA regulation. FinCEN subsequently exempted banks and their trusts from the final residential real estate rule.
