On February 13, 2024, the Financial Crimes Enforcement Network (FinCEN) published a notice on Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers.

The proposed rule would add investment advisers to the list of businesses classified as “financial institutions” under the BSA. The definition would include two types of advisers: investment advisers registered with the Securities and Exchange Commission (SEC), also known as registered investment advisers (RIAs), and investment advisers that report to the SEC as exempt reporting advisers (ERAs).

The key proposed rules for registered investment advisers (RIAs) and investment advisers that report to the SEC as exempt reporting advisers (ERAs) include:

• Establishing AML/CFT programs including risk-based procedures for conducting ongoing CDD.
• Reporting suspicious activity and filing cash transaction reports.
• Maintaining records of originator and beneficiary information for transactions equal to or above USD 3,000.
• Implementing special due diligence requirements for correspondent and private banking accounts.