On September 22, the Financial Crimes Enforcement Network proposed to delay the effective date of its Investment Adviser/CFT Program and SAR requirements for registered investment advisers and exempt reporting advisers from January 1, 2026 to January 1, 2028. The notice of proposed rulemaking frames the delay as providing time to review tailoring across diverse adviser business models while maintaining the rule's policy objectives.
FinCEN emphasized that the proposal does not alter the substance of the 2024 rule, which designated certain advisers as financial institutions under the Bank Secrecy Act. Instead, the agency stated that a two-year delay would give it time to review how the rule applies across different business models, ease near-term compliance costs, and provide regulatory clarity. At the same time, FinCEN pointed back to Treasury's 2024 Investment Adviser Risk Assessment, which highlighted the money laundering and national security concerns that continue to support the need for an AML framework in this sector.
The proposal is subject to a 30-day comment period. FinCEN noted the expedited period reflects the limited scope of the rulemaking but still allows affected firms to weigh in on tailoring concerns and cost considerations.
Putting It Into Practice: FinCEN continues to increase its focus on illicit-finance risks across the financial system (previously discussed here). The recent actions show that FinCEN is prepared to adjust implementation timelines for new obligations but is not retreating from its broader mission to address money laundering and other related threats. The two-year delay offers additional time, but advisers should keep preparation efforts underway so they can move quickly once FinCEN locks in the final schedule.
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