In a move aimed at balancing regulatory costs and benefits, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has announced its plan to delay the implementation of a rule for investment advisers. The final rule, known as the Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (IA AML Rule), was initially set to take effect on January 1, 2026. FinCEN now anticipates postponing this date to January 1, 2028.
The IA AML Rule is designed to address risks associated with illicit finance activities conducted by criminals and foreign adversaries using U.S. financial systems through investment advisers. Recognizing the need for a tailored approach that considers diverse business models within the sector, FinCEN aims to ease compliance costs and reduce uncertainty while it reassesses the rule.
To provide regulatory certainty during this period, FinCEN plans to issue exemptive relief delaying the effective date. In collaboration with the Securities and Exchange Commission, FinCEN also intends to revisit rules related to customer identification programs for registered investment advisers.
