Treasury Postpones Investment Adviser AML Rule to 2028, Signals Scope Review

The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced a significant delay to the introduction of new anti-money laundering (AML) rules for investment advisers. The final rule, which would have imposed AML and countering the financing of terrorism (CFT) programme requirements, as well as suspicious activity report (SAR) filing obligations on registered investment advisers and exempt reporting advisers, will now come into effect on 1 January 2028, rather than the originally planned 1 January 2026.

The Investment Adviser AML Rule aims to close a regulatory gap by bringing advisers more clearly within the US financial crime compliance framework, recognising the sector’s potential exploitation by criminals and foreign adversaries. Investment advisers can play a key role in safeguarding financial integrity, given their involvement in managing substantial client assets, complex structures and cross-border transactions.

However, FinCEN acknowledged the need for regulation that is properly calibrated to the diverse business models and risk profiles across the investment adviser sector. The decision to delay implementation reflects an effort to ease the potential compliance burden on industry participants while reducing regulatory uncertainty. The additional two years will allow FinCEN to revisit the scope and design of the rule, ensuring that it delivers an effective response to illicit finance risks without imposing disproportionate costs.

In parallel, FinCEN confirmed its intention to issue formal exemptive relief to provide immediate regulatory certainty for investment advisers pending the revised rulemaking process. Moreover, FinCEN, working alongside the Securities and Exchange Commission (SEC), will also re-examine the long-awaited proposed customer identification programme (CIP) requirements for investment advisers, which are designed to align with similar obligations imposed on other financial institutions.

This development signals a period of renewed consultation and review for the regulation of investment advisers in the United States, as policymakers seek to balance financial crime prevention priorities with the realities of an evolving advisory landscape. Industry stakeholders are advised to monitor developments closely and be prepared to engage constructively in the forthcoming consultation processes.

Read the press release here.