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Navigating the new FinCEN final rule for investment advisers
Nov. 12, 2024 · Authored by
Reach out to our financial crimes specialists to discuss how the FinCEN final rule may affect your organization.
The Financial Crimes Enforcement Network (FinCEN) issued a pivotal final rule aimed at fortifying the investment adviser sector against illicit finance activities. This rule, which integrates certain registered investment advisers (RIAs) and exempt reporting advisers (ERAs) into the definition of “financial institution” under the Bank Secrecy Act (BSA), marks a significant shift in regulatory expectations. The FinCEN final rule is effective on Jan. 1, 2026. As a critical player in the financial services industry, it’s crucial to understand the implications of this rule for investment advisers and their compliance obligations and ensure your program is established and running ahead of the deadline
Follow our series for a full picture of the BSA, the different regulations that are a part of the BSA and how it will affect investment advisers.
Read Navigating the new AML landscape: It’s much more than KYC for in-depth explanations of the BSA, AML, CFT and KYC.
Read The cost of AML compliance: Why outsourcing may be the smart solution for a helpful overview of the true cost to maintain an effective and compliant AML/CFT program, including the investments needed for personnel, policy development and technology.