Fried Frank explains FinCEN’s Proposed Rule Subjecting Investment Advisers to AML Compliance Requirements

On August 25, 2015, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) proposed a rule that would subject investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC) to certain formal anti-money laundering (AML) compliance program and reporting requirements. The proposed rule seeks to expand the Bank Secrecy Act’s (BSA) definition of financial institutions to cover investment advisers. Currently, the AML compliance rules apply to entities such as banks and broker-dealers, but not to investment advisers and private funds. As a result, the adoption of the proposed rule would have three primary effects, requiring investment advisers to: … Read more