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Treasury to delay the implementation of AML/CFT rule for investment advisors by two years due to revision of scope by FinCEN to address the diverse business models and risk profiles of the sector and appropriately balance costs and benefits

July 22, 2025 //  by Finnovate

The Treasury Department plans to delay for two years the implementation of a new anti-money laundering rule focused on investment advisers while one of its bureaus, the Financial Crimes Enforcement Network (FinCEN), revisits the scope of the rule. The agency postponed the effective date of the final rule establishing Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (IA AML Rule) until Jan. 1, 2028. The previous effective date for the IA AML Rule was Jan. 1, 2026. The agency announced the postponement “to ensure efficient regulation that appropriately balances costs and benefits” and that it aims to ease the industry’s compliance costs and reduce regulatory uncertainty. The IA AML 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.

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Category: Essential Guidance

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