The Financial Crimes Enforcement Network (FinCEN) has issued a Notice of Proposed Rulemaking (NPRM) to delay the Investment Adviser Anti-Money Laundering Rule (IA AML  Rule), which was adopted in September 2024 and formally designated covered investment advisors as “financial institutions” under the Bank Secrecy Act (BSA). Under this classification, they must develop and implement a risk-based Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT)   program, submit Suspicious Activity Reports (SARs) to FinCEN and adhere to other BSA requirements, such as recordkeeping.  

The effective date would be moved from 1 January 2026 to 1 January 2028, a two-year delay.  

What’s the reason for the delay? 

The proposed extension reflects FinCEN’s commitment to making the rule effective and efficient. It is intended to give FinCEN sufficient time to comprehensively review the rule, ensuring it is tailored to the diverse business models and risk profiles of the investment adviser sector. Additionally, the delay aims to balance costs and benefits, avoid unnecessary or duplicative regulatory burdens, and provide clarity by aligning it with the pending Customer Identification Program rule proposed jointly with the Securities and Exchange Commission (SEC).  

Although the current NPRM is solely focused on delaying the date, FinCEN has stated that it plans to review the rule’s substance in a future rulemaking process, which means that more significant changes might be proposed before the 2028 deadline. According to Alaiana Monteiro, Bolder’s Corporate and Governance Officer, potential changes that make the rule more adaptable to different firm sizes and business models should be anticipated, and hopefully, the rule will be finalised with clear guidance on how to align with all obligations.  

FinCEN also granted exemptive relief to provide investment advisors with immediate regulatory certainty until the NPRM formally delays the effective date. However, the two-year window is not a retreat from regulatory objectives; advisers should use this time to engage in the rulemaking.  

With the deadline for comments on the proposed delay set for 22 October 2025, firms have a key opportunity to influence the final structure of the upcoming compliance rule.  

“The opportunity to help shape the final rule is available until 22 October, through comments submitted via Regulations.gov or mail. Professionals should review FinCEN’s NPRM and submit feedback that reflects their operational realities by the deadline. Internally, firms should prioritise building AML programs, drafting policies, training staff and documenting risk assessments to ensure a smooth transition when the final rule becomes effective,” said Alaiana.  

For more information and expert guidance on this update, please get in touch with our Bolder representatives. Our dedicated compliance team is ready to help you. 

* This guidance is for informational purposes only and does not constitute legal or regulatory advice. Clients should consult with qualified legal or compliance professionals before making decisions. 

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