AML/CFT: Investment Adviser Disclosure Rules Published

FINCEN is issuing a notice of proposed rulemaking (NPRM) to

• include certain investment advisers in the definition of “financial institution” under the Bank Secrecy Act (BSA),
• prescribe minimum standards for anti-money laundering/countering the financing of terrorism (AML/CFT) programs to be established by covered investment advisers,
• require covered investment advisers to report suspicious activity to FinCEN pursuant to the BSA,
• and make several other related changes to FinCEN regulations

Written comments on this notice of proposed rulemaking (NPRM) must be submitted on or before April 15, 2024.

FinCEN is proposing to apply certain AML/CFT requirements to certain investment advisers. Currently, there are no Federal or State regulations requiring investment advisers to maintain AML/CFT programs  or records under the BSA.

hese proposed regulations aim to close this gap by amending chapter X of title 31 of the Code of Federal Regulations to add “investment adviser” to the definition of “financial institution” at 31 CFR 1010.100(t).

Investment advisers would be defined to include two types of advisers: those that are

1.  registered or required to register with the U.S. Securities and Exchange Commission (SEC, and, such investment advisers, RIAs) and
2.  investment advisers that report to the SEC as Exempt Reporting Advisers (ERAs) pursuant to the Investment Advisers Act of 1940, and the rules thereunder.

[89 FR 12108]