Executive Summary
From January 1, 2028 registered investment advisers (RIAs) and exempt reporting advisers (ERAs) will be categorized as ‘financial institutions’ for the purposes of the Bank Secrecy Act (BSA). This change by the Financial Crimes Enforcement Network (FinCEN) will extend some Bank Secrecy Act BSA requirements to RIAs and some ERAs for anti-money laundering and countering terrorist financing (AML and CTF) purposes.
The application dated had been January 1, 2026, but on July 21, 2025, FinCEN announced that it is delaying the application for two years. FinCEN and the SEC will also be reviewing the scope of the rule as well as the associated Customer identification Program rule for investment advisers which has yet to be finalised.
Key requirements are to:
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Establish AML/CFT programs, to include risk-based procedures for conducting ongoing customer due diligence (CDD);
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Monitor for and report suspicious activity and file SARs and currency transaction reports (CTRs);
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Maintain records of originator and beneficiary information for certain transactions (the Recordkeeping and Travel Rules);
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Comply with new information-sharing provisions; and
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Implement special due diligence requirements under the USA PATRIOT Act for certain types of accounts for non-U.S. financial institutions and non-U.S. persons.
This also applies to non-U.S. investment advisers but only where their activities:
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Take place within the United States, including through the involvement of U.S. personnel of the investment adviser, such as the involvement of an agency, branch, or office within the United States; or
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Provide services to a U.S. person (e.g., a U.S. feeder fund) or a non-U.S. private fund with one or more investors that is a U.S. person.
There is also a further FinCEN proposal on AML/CFT programs for all in scope financial institutions which will also need to be considered.
Please contact James Hopegood with any questions.
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James Hopegood
Director, Asset Management Regulation
Timeline
AIMA has categorized these requirements as High Priority/Medium Impact and they are therefore represented in bright pink in the AIMA Regulatory Horizon Scan gantt chart.
Compliance Date of FinCEN AML/CFT Program Rule | January 1, 2028 | ***new*** |
Estimated compliance date for the final joint FinCEN/SEC rules for Customer Identification Programs for RIAs and ERAs and further FinCen rules for foinancial institutions | January 1, 2028 | ***new*** |
Estmated publication date of the final joint FinCEN/SEC rules for Customer Identification Programs for RIAs and ERAs and further FinCen rules for financial institutions | July 30, 2025 | |
Publication Date of FinCEN AML/CFT Program Rule | September 4, 2024 | |
AIMA response to FinCEN/SEC joint proposal filed | July 22, 2024 | |
FinCEN proposal to amend the rules for Anti-Money Laundering and Countering the Financing of Terrorism Programs for financial institutions published in the Federal Register | July 3, 2024 | |
Joint proposal for Customer Identification Programs for RIAs and ERAs published in Federal Register | May 21, 2024 | |
FinCEN and SEC publish joint proposal for Customer Identification Programs for RIAs and ERAs | May 13, 2024 | |
AIMA's response to FinCEN NPRM filed | April 15, 2024 | |
FinCEN's NPRM published | February 14, 2024 |
Future AIMA Work
We will be holding a webinar to walk through what the proposed rules will require. Watch this space for details.