"Treasury's New Rules Combat Money Laundering in Investment Adviser and Real Estate Sectors"

The U.S. Department of the Treasury's FinCEN has proposed a rule to combat illicit finance and national security threats in the investment adviser sector by requiring certain advisers to adhere to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements. This rule aims to add transparency to the financial system, assist law enforcement in identifying illicit proceeds, and level the regulatory playing field to protect the U.S. economic and national security. The proposed rule would classify investment advisers as "financial institutions" under the Bank Secrecy Act, requiring them to implement AML/CFT programs, file suspicious activity reports, and fulfill recordkeeping requirements. FinCEN is seeking public comments on the proposed rule until April 15, 2024.