FINCENFinal Rule

Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers

Finance & BankingOther

Summary

This rule requires investment advisers to establish programs to detect and report suspicious financial activity that could be related to money laundering or terrorism financing. The requirement helps law enforcement agencies track illegal money flows and protects the financial system from being used for illegal purposes.

Key Points

  • 1Investment advisory firms must now have systems in place to identify and report suspicious transactions to federal authorities
  • 2The rule applies to registered investment advisers and certain smaller advisory firms that were previously exempt from these requirements
  • 3Firms must file Suspicious Activity Reports (SARs) when they detect transactions that might involve money laundering, terrorist financing, or other financial crimes
  • 4Investment advisers need to develop written policies, train employees, and designate a compliance officer to oversee their anti-money laundering program
  • 5Failure to comply with these reporting requirements can result in significant penalties and fines for investment firms

Key Dates

Published

January 2, 2026

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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