Advocacy Submits Comments on FinCen’s Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements

On May 15, 2024, the Office of Advocacy submitted comments on the Financial Crime Enforcement Network’s (FinCEN) notice of proposed rulemaking (NPRM) on Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisors and Exempt Reporting Advisers.

The proposed rule would include certain investment advisers in the definition of “financial institution” under the Bank Secrecy Act (BSA), prescribe minimum standards for anti-money laundering/countering the financing of terrorism programs to be established by covered investment advisers, require covered investment advisers to report suspicious activity to FinCEN, and make other changes to FinCEN regulations.

Advocacy expressed concerns about FinCEN’s decision to use the Securities and Exchange Commission’s (SEC) size standard. The SEC defines small advisors as those who are managing less than $25 million in customer assets. The SBA size standard for investment advisors is $47 million in annual receipts. Advocacy asserts that it is inappropriate to use the SEC’s small entity definitions for this rule.

Advocacy also encouraged FinCEN to consider additional less costly alternatives for small entities.

For more information, please contact Assistant Chief Counsel Jennifer A. Smith at Jennifer.Smith@sba.gov.

Document

Comment Letter – FinCEN Investment Advisors (PDF, 83.6 KB)

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