FinCEN Delays Anti-Money Laundering Rule for Investment Advisers Until 2028
According to the agency, the delay will allow it to balance regulatory efficiency with industry burden for the rule implemented under former President Joe Biden.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network will delay the effective date of its final rule requiring Anti-Money Laundering and Countering the Financing of Terrorism programs and Suspicious Activity Report filings for registered investment advisers and exempt reporting advisers.
The rule, adopted by former President Joe Biden’s administration last year, was originally set to take effect on January 1, 2026, but is now expected to be postponed until January 1, 2028, according to the agency.
FinCEN cited the need to balance regulatory efficiency with industry burden and plans to revisit the rule’s scope and content during the extended timeline.
Under the Biden administration, the rule was part of an effort to close what the department deemed loopholes that allowed people to launder illicit money through the U.S. financial system. The rule aims to address illicit finance risks posed by criminals and foreign actors exploiting the U.S. financial system through investment advisers.
However, FinCEN acknowledged that the current rule may require additional tailoring to reflect the sector’s diverse business models and risk profiles.
The Investment Adviser Association, which raised concern about “the short compliance timeline and the overbroad scope of the rule,” stated the delay was necessary.