FinCEN Delays Effective Date of Investment Adviser/AML Rule by Two Years
The Financial Crimes Enforcement Network ("FinCEN") issued a final rule postponing the effective date of the 2024 rule establishing AML/CFT program and SAR filing requirements for SEC-registered investment advisers ("RIAs") and exempt reporting advisers ("ERAs").
The rule, originally scheduled to take effect on January 1, 2026, will now take effect on January 1, 2028. FinCEN adopted the delay as proposed in September 2025 without modification. (See related coverage.) The agency invoked "good cause" authority to make the delay effective immediately upon publication in the Federal Register, waiving the standard 30-day and 60-day waiting periods, to provide immediate regulatory certainty before the original compliance deadline arrived.
The underlying rule, issued on September 4, 2024, defined RIAs and ERAs as "financial institutions" under the Bank Secrecy Act. This designation subjected covered advisers to requirements to establish risk-based AML/CFT programs, file SARs, conduct customer due diligence, and comply with related recordkeeping obligations.
FinCEN stated that the two-year delay is necessary to (i) review the rule to ensure it is effectively tailored to diverse investment adviser business models and risk profiles, and (ii) align with Administration deregulatory policies, specifically Executive Order 14192. FinCEN estimated that the postponement will result in approximately $1.45 billion in compliance cost savings across 2026–2027. While acknowledging comments from transparency organizations warning that the delay could prolong the financial system's exposure to illicit finance, FinCEN concluded that the extension best balances these risks with the need to reduce unnecessary regulatory burdens.
The final rule to delay the effective date became effective on January 2, 2026.
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