Treasury’s FinCEN Postpones Investment Adviser AML Rule Rollout

In order to “ensure efficient regulation that appropriately balances costs and benefits,” the U.S. Department of the Treasury’s Financial Crimes Enforcement Network, or FinCEN, announced its intention to postpone the effective date of the final rule establishing anti-money laundering/countering the financing of terrorism program and suspicious activity report filing requirements for registered investment advisers and exempt reporting advisers, also known as the IA AML Rule.

FinCEN representatives said it would revisit the scope of the IA AML Rule at a future date and anticipates delaying the effective date of the IA AML Rule from Jan. 1, 2026, until Jan. 1, 2028.

The IA AML 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.

FinCEN said it recognizes, however, that the rule must be effectively tailored to the diverse business models and risk profiles of the investment adviser sector. By extending the effective date of the rule, the agency said it may help ease potential compliance costs for industry and reduce regulatory uncertainty while it undertakes a broader review of the IA AML Rule.

While FinCEN will work through the rulemaking process to extend the effective date, it said it intends to provide the investment adviser sector with regulatory certainty by issuing appropriate exemptive relief delaying the effective date.

During the delayed effective date, FinCEN intends to revisit the substance of the IA AML Rule through a future rulemaking process and, together with the U.S. Securities and Exchange Commission, also said it will revisit the joint proposed rule establishing customer identification program rule requirements for investment advisers.

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