Anti-money laundering program and suspicious activity report filing requirements for registered investment advisors: practicalities and implications of FinCEN’s proposed new rule

Abstract

Purpose

To provide a summary and analysis of the Proposed Rulemaking published by the Financial Crimes Enforcement Network (FinCEN) on September 1, 2015, which proposes to subject investment advisers to certain requirements of the Bank Secrecy Act of 1970.

Design/methodology/approach

The article discusses the proposed expansion of Bank Secrecy Act regulations to include investment advisers, including the history behind the rulemaking, proposed definition of “investment adviser” under the Act, the comments received in response to the proposed rulemaking, and the potential implications of the rule, should it be finalized.

Findings

This article concludes that FinCEN, in cooperation with the Securities and Exchange Commission (SEC) and other agencies, is nearing completion of the proposed rule. Investment advisers that fall under the proposed definition of those subject to Bank Secrecy Act should prepare to implement anti-money laundering compliance programs.

Originality/value

This article contains valuable information about proposed regulations impacting investment advisers registered or required to be registered with the Securities and Exchange Commission.

Citation

Lopez, J.A., Linn, C.J., Eisert, E. and Muldoon, L. (2016), "Anti-money laundering program and suspicious activity report filing requirements for registered investment advisors: practicalities and implications of FinCEN’s proposed new rule", Journal of Investment Compliance, Vol. 17 No. 2, pp. 54-60. https://doi.org/10.1108/JOIC-04-2016-0016