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NEWS: US crackdown on investment advisers, seen as entry point for dirty money

CRACKDOWN: “The proposed rule is designed to make it more difficult to use false identities to establish customer relationships with investment advisers,” said SEC Chair Gary Gensler. “I support this proposal because it could reduce the risk of terrorists and other criminals accessing U.S. financial markets to launder money, finance terrorism, or move funds for other illicit purposes.”

By AML Intelligence Correspondents

THE SEC and FinCEN today (Mon) proposed requiring investment advisers (RIAs) and exempt reporting advisers (ERAs) to maintain written customer identification programs (CIPs).

The proposed rule would make it more difficult for criminal, corrupt, or illicit actors to establish customer relationships—including by using false identities—with investment advisers for the purposes of laundering money, financing terrorism, or engaging in other illicit finance activity.

It follows a Treasury risk assessment that identified that the investment adviser industry has served as an entry point into the U.S. market for illicit proceeds associated with foreign corruption, fraud, tax evasion, and other criminal activities.

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