FinCEN Finalizes AML Rule for Investment Advisers

The Financial Crimes Enforcement Network (FinCEN) has finalized a long-anticipated rule extending anti-money laundering (AML) requirements to a wide range of investment advisers. Beginning January 1, 2026, most SEC-registered investment advisers (RIAs) and exempt reporting advisers (ERAs) will be considered “financial institutions” under the Bank Secrecy Act (BSA).

This rule marks a significant shift. While many advisers have voluntarily implemented AML measures in the past, compliance will now be mandatory and enforceable.

What the Rule Requires

Firms subject to the rule will need to develop and maintain a written AML/CFT program that is risk-based and reasonably designed to prevent illicit finance. They’ll also be required to file Suspicious Activity Reports (SARs), maintain specific records under the Travel and Recordkeeping Rules, and participate in regulatory information sharing frameworks.

Advisers with U.S.-based clients or U.S. operations will be covered, even if their principal office is overseas. The SEC will take on examination and enforcement responsibilities under this new regime.

What This Means for Your Firm

If you’re an RIA or ERA, now is the time to assess your firm's readiness to meet the new expectations. Key actions to consider:

• Review your existing compliance infrastructure
• Identify any gaps or outdated policies
• Begin drafting or updating AML procedures
• Plan for implementation timelines and staff training

We’re actively helping firms prepare through a combination of advisory, policy development, and support. The earlier you start, the more flexibility you’ll have to approach this strategically, not reactively.

Our team is collaborating with investment advisers to develop AML programs that comply with the new rule. We offer:

• Risk assessments tailored to firm size and structure
• AML program design and documentation
• Reviews of existing policies and controls 

If this rule affects your firm and you’re not sure where to begin or just want to talk through what’s ahead, let’s have a conversation to help you get clear on what this means for you and how to move forward.