By AML Intelligence Correspondent
FinCEN today (Monday) announced it is postponing the effective date of the final rule establishing SARs for investment advisors.
The agency also said it would revisit the scope of the so-called IA AML Rule at a future date.
“FinCEN anticipates delaying the effective date of the IA AML Rule from January 1, 2026, until January 1, 2028,” FinCEN said.
More on the IA AML Rule can be found here: Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers
The Rule seeks to address ongoing illicit finance risks, threats, and vulnerabilities posed by criminals and foreign adversaries that exploit the U.S. financial system and assets through investment advisers.
FinCEN recognizes, however, that the rule must be effectively tailored to the diverse business models and risk profiles of the investment adviser sector, the agency said.
“FinCEN also recognizes that extending the effective date of the rule may help ease potential compliance costs for industry and reduce regulatory uncertainty while FinCEN undertakes a broader review of the IA AML Rule,” the agency said.
While FinCEN said it will work through the rulemaking process to extend the effective date, the agency said it intends to provide the IA sector with regulatory certainty by issuing appropriate exemptive relief delaying the effective date.
The agency added: “During the delayed effective date, FinCEN intends to revisit the substance of the IA AML Rule through a future rulemaking process and, together with the Securities and Exchange Commission, also intends to revisit the joint proposed rule establishing customer identification program rule requirements for investment advisers, Customer Identification Programs for Registered Investment Advisers and Exempt Reporting Advisers.”
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