FinCEN AML Compliance Hub for Investment Advisers

Originally released in 2024, the proposed rule from FinCEN would bring certain investment advisers and exempt reporting advisers under the scope of the BSA. These firms will be required to establish a risk-based AML/CFT program, file suspicious activity reports (SARs), and maintain records and records in line with federal anti-money laundering laws.

The rule is designed to close longstanding gaps in the U.S. financial regulatory framework by increasing oversight of entities that previously fell outside traditional AML enforcement.

The final rule applies to a broader range of advisory firms than ever before, including SEC-registered investment advisers, venture capital advisers, and exempt reporting advisers (ERAs), including those based abroad if they have U.S. investors. This expansion means many firms that have never been subject to the BSA must now prepare to meet complex AML requirements, particularly if they advise funds with any U.S.-based investors.

The final rule applies to a broader range of advisory firms than ever before, including SEC-registered investment advisers, venture capital advisers, and exempt reporting advisers (ERAs), including those based abroad if they have U.S. investors. This expansion means many firms that have never been subject to the BSA must now prepare to meet complex AML requirements, particularly if they advise funds with any U.S.-based investors.

• State-registered advisers 
• Foreign advisers with no U.S. clients
• Family offices 

Firms must:

1. Develop and implement a risk-based AML program
2. File Suspicious Activity Reports (SARs) with FinCEN
3. Keep records of certain transactions
4. Share information with law enforcement and other financial institutions when needed
5. Designate an AML compliance officer
6. Conduct independent testing

Struggling to build your AML program from scratch?  

ACA offers templates, training, and testing solutions designed for investment advisers and exempt reporting advisers new to the BSA. Explore our AML solutions. 

It’s a report filed with FinCEN when a firm sees something that looks like money laundering, fraud, or other financial crimes. Learn more about SARs.

While the rule doesn’t yet mandate a Customer Identification Program (CIP), FinCEN has proposed a separate rule for that. For now, advisers must assess risk and apply appropriate due diligence.

This rule takes effect January 1, 2028 – firms must be fully compliant by then.

It helps stop criminals and foreign threats from using investment advisers to hide or move illegal money. It also brings the U.S. in line with global standards.

Unlike GTOs, which are temporary and location-specific, the new AML rule is permanent and nationwide, covering all jurisdictions and any dollar amount, including gift transfers.

ACA helps investment advisers get compliant by building AML programs, offering assessments, conducting independent testing, and providing ongoing support so you’re ready by January 1, 2028. Let’s prepare together.  

The final rule may apply to foreign investment advisers and exempt reporting advisers if they have a principal place of business in the U.S. or manage funds with U.S.-based investors. Even firms that operate primarily outside the U.S. could fall within scope if their advisory activities or client base create sufficient jurisdictional ties. This extraterritorial reach means that advisers based abroad must carefully assess their exposure and prepare to adopt AML practices consistent with FinCEN’s expectations, particularly if they have historically operated outside the BSA framework.