AML Rule Delayed

Many RIAs have been preparing compliance programs in anticipation of the new anti-money laundering (AML) rule for investment advisers, which was previously scheduled to take effect in January of 2026.

However, last week FinCEN announced that the effective date is now being pushed back to January of 2028. According to a Treasury Department press release, this delay intends “to help ease potential compliance costs for industry and reduce regulatory uncertainty while FinCEN ... revisits the substance of the IA AML Rule through a future rulemaking process."

This suggests that the rule may ultimately be scaled back, which in turn should reduce the compliance burden on investment advisers once the final rule takes effect. FinCEN's announcement follows another significant development a few weeks ago, which reflects an overall trend of regulatory easing.

In June, the SEC withdrew 14 proposed rules, including several with significant compliance implications. The withdrawn proposals included:

(1) Cybersecurity Risk Management, requiring formal policies to mitigate cybersecurity threats;

(2) Outsourcing by Investment Advisers, limiting outsourcing of key functions without meeting new regulatory requirements;

(3) Predictive Data Analytics, governing the use of AI and algorithmic tools by advisers; and

(4) Enhanced ESG Disclosures, imposing additional requirements for firms making ESG-related claims.

Each of these, along with other withdrawn rules, would have created additional regulatory burdens on RIAs, with a corresponding need to implement new compliance policies.

While regulators will certainly continue to enforce existing rules — and our compliance programs should reflect that — these recent developments signal a shift toward easing the regulatory burden on investment advisers under the current administration. We’ll continue to monitor these changes closely.

Notable links:

• Treasury press release: https://home.treasury.gov/news/press-releases/sb0201

• SEC Withdrawal of Proposed Rules: https://www.sec.gov/files/rules/final/2025/33-11377.pdf