• FinCEN Proposes IA AML Rule
  • August 28, 2015
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • The Financial Crimes Enforcement Network (FinCEN) recently proposed anti-money laundering (AML) rules for investment advisers registered or required to be registered with the SEC (Covered Advisers). These rules are aimed at Covered Advisers precisely because they are not required to maintain AML programs or file suspicious activity reports, making them targets for money launderers and terrorist financiers seeking access to the U.S. financial system.

    Although FinCEN first proposed rules regarding investment adviser AML programs in 2003, the changing regulatory landscape for investment advisers, including the passage of the Dodd-Frank Act, has prompted FinCEN to take a fresh look at regulating investment advisers.

    Under the proposed rules, Covered Advisers would be required to establish AML programs, report suspicious activity and comply with all Bank Secrecy Act regulatory requirements generally applicable to financial institutions. According to FinCEN’s notice, future rulemaking may add a customer identification program requirement to the AML framework and may capture other types of investment advisers, including state-regulated investment advisers and investment advisers exempt from SEC registration.