FinCEN, a Treasury agency that fights financial crimes, proposed a new rule today to prevent investment advisers from helping criminals and foreign enemies abuse the U.S. financial system and assets. This rule, along with Treasury’s other measures against hidden companies and cash-only property deals, is aimed to make the U.S. financial system more transparent and help law enforcement track down dirty money in the U.S. economy.  To review the proposed rule in its entirety click here.

The proposed rule would require certain investment advisers to apply AML/CFT requirements pursuant to the Bank Secrecy Act (BSA), including implementing risk-based AML/CFT programs, reporting suspicious activity toFinCEN, and fulfilling record keeping requirements.

The comment period for this proposed rule closes on April15, 2024.  We encourage RIAs to review the proposed rule and to comment on how this would affect their operational practices.  

How do you become aware of proposed rules within the industry? If you don’t have one central location to see industry news, consider how Avery by RegVerse can enhance your compliance program.  It constantly scans over 100 trusted regulatory sources to ensure you're always up to speed. Our AI-driven technology reviews these sources for any new regulations, changes to existing rules, or significant regulatory events. By doing so, we help you stay proactive, not reactive, in your compliance efforts. With Avery by RegVerse, you can rest easy knowing that your compliance status is as current as it gets.

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Resources used:

FactSheet: Anti-Money Laundering Program and Suspicious Activity Report FilingRequirements for Registered Investment Advisers and Exempt Reporting Advisers Notice of Proposed Rulemaking (NPRM) | FinCEN.gov

FinCEN Proposes Rule to Combat Illicit Finance and National Security Threats in Investment Adviser Sector | FinCEN.gov

Anti-Money Laundering/Countering the Financing of Terrorism Program and SuspiciousActivity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers | FinCEN.gov

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Key Terms: AML, Anti-money laundering, FinCen, AML Rule

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