Investment Advisers May Be Required to Implement Anti-Money Laundering Policies and Procedures

December 05, 2011

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Registered investment adviser may soon be required to monitor client accounts for money laundering activities.  James Freis, the director of the U.S. Treasury’s Financial Crimes Enforcement Network (“FinCEN”), recently announced that FinCEN and the U.S. Securities and Exchange Commission (“SEC”) are working together to finalize anti-money laundering regulations that would apply to investment advisers.  The proposed rule would likely require investment advisers to implement anti-money laundering policies and procedures and would also require them to report suspicious activity to the appropriate authorities.

Currently, broker-dealers and investment companies are subject to anti-money laundering rules.  A rule that would have subjected investment advisers to the similar anti-money laundering requirements was proposed in 2003.  However, the rule did not receive much attention from regulators and was withdrawn in November of 2008.

Stay tuned to RIA Compliance Consultants for further updates as we will continue to follow this story.

Posted by Bryan Hill
Labels: Anti-Money Laundering, Compliance Program