On Sep. 4, 2024, FinCEN published a final rule (Final Rule) adding certain RIAs and ERAs (collectively, Covered Advisers) to the definition of “financial institution” under the regulations implementing the BSA, and imposing on Covered Advisers broad AML and CFT program requirements, as well as other BSA recordkeeping and reporting requirements. The Final Rule represents a significant regulatory change for Covered Advisers and requires them to comply by Jan. 1, 2026.

FinCEN has delegated examination authority for compliance with the Final Rule to the SEC. Accordingly, Covered Advisers should expect that the SEC will begin focusing on these programs in future examinations.

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