FinCEN Postpones Effective Date of AML/CFT Rule for Investment Advisers Until 2028

Strategic Insights -

The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has issued an order providing exemptive relief for investment advisers (IAs) from compliance with the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) program requirements. The IA AML Rule, which was set to take effect on January 1, 2026, has been postponed to January 1, 2028. FinCEN stated that the review of the IA AML Rule will allow it to ensure the rule strikes an appropriate balance between cost and benefit, taking into account the diverse business models and risk profiles of the investment adviser sector. During the postponement, FinCEN plans to issue a notice of proposed rulemaking (NPRM) to propose a new effective date for the IA AML Rule, which may include substantive changes to the existing rule.

Key Takeaways:

  • The IA AML Rule was set to take effect on January 1, 2026, but has been postponed to January 1, 2028.
  • FinCEN has issued an order providing exemptive relief from all requirements of the IA AML Rule until January 1, 2028.
  • The postponement will allow FinCEN to review the IA AML Rule to ensure it strikes an appropriate balance between cost and benefit.
  • FinCEN intends to issue a notice of proposed rulemaking (NPRM) to propose a new effective date for the IA AML Rule, which may include substantive changes to the existing rule.
  • The IA AML Rule will require most U.S. Securities Exchange Commission (SEC)-registered investment advisers to implement an AML program, file certain reports, and keep records.
  • Covered IAs, including exempt reporting advisers (ERAs), will be subject to the IA AML Rule requirements from January 1, 2028.

Statistics:

  • January 1, 2026: Original effective date of the IA AML Rule.
  • January 1, 2028: Postponed effective date of the IA AML Rule.
  • 2028: FinCEN plans to issue a notice of proposed rulemaking (NPRM) to propose a new effective date for the IA AML Rule.
  • Between 25 million and 100 million dollars AUM: Assets under management threshold for exempt reporting advisers (ERAs).
  • 15 or more states: Number of state registrations required for multi-state advisers.

Sources:

  • The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) - Order Providing Exemptive Relief for Covered IAs from All Requirements of the IA AML Rule Until January 1, 2028 (August 5, 2025).
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