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FinCEN Delays Effective Date of Investment Adviser AML Rule

Strategic Insights

— 1 min read

The Financial Crimes Enforcement Network (FinCEN) has announced a two-year delay in the effective date of the investment adviser anti-money laundering rule (IA AML Rule), pushing it back from January 1, 2026, to January 1, 2028. This delay is intended to allow FinCEN to revisit the scope and substance of the rule through future rulemaking. Additionally, FinCEN will work with the SEC to revisit the joint proposed rule establishing customer identification program requirements for investment advisers (IA CIP Rule). This decision addresses industry concerns about the rule's scope and the simultaneous review of both proposals.

Key Takeaways:

  • The effective date of the IA AML Rule has been delayed for two years from January 1, 2026, to January 1, 2028.
  • FinCEN plans to reopen the IA AML Rule and revisit its scope and substance through future rulemaking.
  • The delay aims to provide a more tailored approach to the rule, acknowledging the diverse business models and risk profiles of the investment adviser sector.
  • FinCEN will also work with the SEC to revisit the joint proposed rule establishing customer identification program requirements for investment advisers (IA CIP Rule).
  • The delay will give investment advisers the opportunity to review and comment on both proposals simultaneously.
  • The announcement addresses widespread criticism about the initial rulemaking process, which had the IA AML Rule's comment period close before the IA CIP Rule was proposed.

Statistics:

  • Two-year delay in the effective date of the IA AML Rule.
  • January 1, 2026, initially set as the effective date of the IA AML Rule.
  • January 1, 2028, new effective date of the IA AML Rule.
  • FinCEN plans to reopen the IA AML Rule for future rulemaking without a specified timeline.
  • The SEC will work with FinCEN on revisiting the IA CIP Rule without a specified timeline.

Sources:

  • FinCEN, "FinCEN Announces Two-Year Delay in Effective Date of Investment Adviser Anti-Money Laundering Rule"
  • Mondaq article, "FinCEN Delays Effective Date of Investment Adviser AML Rule"

(c) Mondaq Ltd, 2025

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