- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-08-30T20:32:00
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) released new anti-money laundering (AML) requirements for U.S. investment advisers and real estate professionals that attempt to close loopholes that criminals and kleptocrats have long exploited.
FinCEN’s new AML rule for investment advisers categorizes registered investment advisers (RIAs) and exempt reporting advisers (ERAs) as financial institutions. This new categorization for RIAs and ERAs registered with the Securities and Exchange Commission (SEC) requires them to screen their clients’ transactions for potential illegal activity to comply with the Bank Secrecy Act (BSA), just like other financial institutions.
“Both rules deliver on key lines of effort outlined in the Biden-Harris administration’s U.S. Strategy on Countering Corruption,” FinCEN said in a press release Wednesday.
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Business owners can stop preparing their 2025 anti-money laundering reports for the Treasury Department’s Financial Crimes Enforcement Network, according to a Texas court, which ruled the Corporate Transparency Act requirement unconstitutional.
The Securities and Exchange Commission will host a virtual national seminar on Nov. 7 targeted toward chief compliance officers at investment companies and investment advisers.
The Financial Crimes Enforcement Network will propose categorizing investment advisers as financial institutions that must comply with the Bank Secrecy Act, including having an anti-money laundering program.
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