The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has put forth a proposal for new anti-money laundering (AML) regulations aimed at investment advisers registered with the U.S. Securities and Exchange Commission (SEC). The proposal seeks to address the risks associated with money laundering and terrorist financing within the investment advisory industry.
The new rules, if implemented, would require SEC-registered investment advisers to establish and maintain comprehensive AML programs. These programs would include policies and procedures to detect and report suspicious activity, as well as ongoing customer due diligence measures to verify client identities and assess potential money laundering risks. Investment advisers would also be required to conduct independent testing of their AML programs and appoint a designated compliance officer responsible for overseeing AML efforts.
