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Financial services

Lawmakers Press Treasury Secretary on Delay and Potential Rollback of Anti-Money Laundering Rules

Strategic Insights

— 1 min read

U.S. lawmakers, led by Rep. Maxine Waters and Sens. Elizabeth Warren and Andy Kim, have raised concerns about the Treasury Department's decision to delay and potentially weaken anti-money laundering rules for the multi-trillion dollar investment adviser sector. The lawmakers argue that the delay leaves American national security and economic stability vulnerable, and warn that the industry's growth poses significant risks to U.S. citizens, economic stability, and democracy. The Treasury Department has been criticized for taking steps to roll back illicit finance protections, including disbanding teams tasked with protecting against money laundering and narrowing enforcement of foreign bribery laws.

Key Takeaways:

  • The Treasury Department has postponed the compliance date for its 2024 anti-money laundering rule (IA AML Rule) for investment advisers from 2026 to 2028.
  • The lawmakers argue that the delay leaves American national security and economic stability vulnerable.
  • The investment adviser and private fund industries have $144.6 trillion in assets under management in 2024, a 12 percent increase from 2023.
  • The Administration has taken steps to roll back illicit finance protections, including disbanding multiple Department of Justice teams tasked with protecting against money laundering and narrowing enforcement of U.S. foreign bribery laws.
  • The lawmakers are seeking answers from Treasury Secretary Scott Bessent on which external parties drove the decision to postpone and reopen the IA AML rule.
  • The lawmakers are also seeking information on the steps the agency will take to counter money laundering without the rule in place and the agency's plans to revisit the rule.

Statistics:

  • $144.6 trillion: The amount of assets under management in the investment adviser and private fund industries in 2024.
  • 12%: The increase in assets under management in 2024 compared to 2023.
  • 2026 - 2028: The new compliance date for the IA AML rule for investment advisers.

Sources:

  • Democrats on the House Financial Services Committee (https://democrats-financialservices.house.gov/UploadedFiles/20250918_ltr_on_ia_aml_rule.pdf)
  • Democrats on the House Financial Services Committee (https://democrats-financialservices.house.gov/UploadedFiles/US-Sectoral-Illicit-Finance-Risk-Assessment-Investment-Advisers-09192025.pdf)
  • Treasury Department report (https://www.treasury.gov/policy-issues/austerity-and-money-laundering)

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