Well well well…FinCen has announced that its proposed AML rule, initially set to launch January 1, 2026, has been pushed back to January 1, 2028. While this may appear to put the rule on hold, this move has signaled that the scope of the rule will be reopened and reevaluated in the future, keeping it active in the agency’s rulemaking pipeline. Investment advisors have questioned the rule, as the AML proposal closely mirrors the requirements already imposed on broker-dealers and banks, such as customer identification programs (CIPs), suspicious activity reporting (SARs), and ongoing monitoring.
Time will tell whether FinCen will proceed with the rule as originally drafted, significantly revises it, or shelves it entirely. For now, advisers should stay alert: the underlying expectations of AML compliance continue to evolve, even without formal rule adoption.
This delay also opens the door to potential structural reforms. For example, Commissioner Atkins has voiced support for allowing 401(k) plans to invest in private markets, a shift that, if pursued, would likely intersect with AML and investor protection frameworks. As the Commission reconsiders the contours of the rule, broader policy conversations like this could influence how future AML obligations are crafted.
So, what is there to look out for next? For investment advisors the next major rulemaking milestone is the SEC’s amendment to Regulation S-P, which focuses on non-public client information:
- Advisers with $1.5 billion or more in RAUM must comply by December 3, 2025
- Advisers with less than $1.5 billion in RAUM must comply by June 3, 2026
If you or your team have compliance questions, we are happy to help! Our goal is to support RIAs so you can focus on what matters most to you. Please reach out to us here.