FinCEN Finalizes Rules on Anti-Money Laundering for Certain Investment Advisers

 On August 28, the Financial Crimes Enforcement Network (FinCEN) finalized regulations that extend anti-money laundering (AML) regulations to certain investment advisers. The new rules require Covered Advisers to establish an AML program and counter-terrorist financing program and file suspicious activity reports (SARs) with FinCEN. ‘Covered Advisers’ for purposes of the new rules include SEC-registered advisers other than certain exempted categories of registrants. FinCEN limited the final rules by permitting covered advisers to exclude certain types of advisory customers from the scope of the AML program requirements, including open-end mutual funds, collective investment funds and other advisers that are subject to their own AML requirements. However, FinCEN did not exclude registered closed-end mutual funds from the requirements. The effective date of the new requirements is January 1, 2026.

Click here to read the final rule Fact Sheet.