FinCEN Proposes AML Regulations for Investment Advisers

On August 25, 2015, FinCEN released a long-awaited notice of proposed rulemaking that would impose AML compliance obligations on SEC-registered investment advisers, taking steps to close what regulators perceive as a gap in the money laundering defenses of the U.S. financial system. The proposed rule has already drawn controversy, with some commenters questioning whether it goes far enough and others questioning the potential compliance costs for investment advisers.