FinCEN Grants Temporary Exemption for Investment Adviser AML Rule Requirements

The Financial Crimes Enforcement Network (FinCEN) has issued an Exemptive Relief Order delaying the effective date of its Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (IA AML Rule). Originally due to take effect on 1 January 2026, the rule will now be suspended until 1 January 2028.

The IA AML Rule, finalised in September 2024, classified certain investment advisers as “financial institutions” under the Bank Secrecy Act. This classification would have required them to implement AML/CFT programmes, file suspicious activity reports, and maintain detailed records.

The delay reflects the US Administration’s wider deregulatory agenda, aimed at reducing unnecessary or duplicative compliance burdens. FinCEN stated it will review the rule to ensure it balances compliance costs against benefits, tailoring requirements to the varied business models and risk profiles within the investment adviser sector while still protecting the US financial system from illicit finance threats.

FinCEN intends to issue a notice of proposed rulemaking to set a new effective date no earlier than January 2028. Until then, investment advisers defined under the IA AML Rule are exempt from its requirements, with FinCEN retaining the discretion to revoke the exemption

Read the order here.