FinCEN Postpones Opening Night for RIA AML Programs

On July 21, 2025, the Financial Crimes Enforcement Network (FinCEN) announced its intention to postpone, for two years, the effective date of a final rule subjecting investment advisers to the anti-money laundering (AML) compliance provisions of the Bank Secrecy Act (BSA).

FinCEN had adopted its final rule on August 28, 2024, originally scheduled to become effective on January 1, 2026. For additional information on that rule, please refer to “Deadline Approaches for RIAs to Adopt AML Programs: CIP Requirements Remain in Limbo,” Expect Focus — Life, Annuity, and Retirement Solutions (January 2025). As adopted, the rule did not include any requirement that investment advisers implement customer identification programs (CIPs) or take steps to identify beneficial owners of customer entities — elements that were included as part of a companion rule proposed jointly by FinCEN and the SEC on May 21, 2024.

The Investment Company Institute (ICI) sent two letters to the relevant theater manager at the Treasury Department, requesting that the date for RIAs to comply with AML provisions of the BSA be delayed. Among other reasons, the ICI cited that the proposed CIP rule had not yet been finalized. It also emphasized the importance of giving advisers adequate implementation time after gaining a full understanding of all required elements of a compliant AML program, particularly since CIP is a fundamental component of an effective AML program.

In postponing the date for RIAs to comply with the AML provisions of the BSA until January 1, 2028, FinCEN recognized that the final rule must be effectively tailored to the diverse business models and risk profiles of the investment adviser sector. In addition, FinCEN acknowledged that the extension may ease potential compliance costs for the industry and reduce regulatory uncertainty while it conducts a broader review of the rule, including through a future rulemaking process. Finally, FinCEN indicated that, in conjunction with the SEC, it also intended to revisit the proposed CIP rule.

This (and any future) postponements should enable RIA scriptwriters to incorporate regulators’ ultimate views on required BSA compliance for investment advisers by the time the curtain rises on the advisers’ AML programs.