SEC Investment Advisor

New AML Rules for Investment Advisers

On May 13, 2024, the SEC and the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) jointly issued a proposed rule (the Proposal) that, if adopted, would impose new anti-money laundering and countering the financing of terrorism (AML/CFT) compliance obligations on registered investment advisers (RIAs) and exempt reporting advisers (ERAs).

The Proposal generally mandates investment advisers establish, document, and maintain a written customer identification program (CIP) appropriate for their size and business operations. This CIP must be integral to the adviser’s AML/CFT compliance program. Should the Proposal be finalized, private fund sponsors must (1) update their subscription documentation to ensure the collection of relevant identification documents and information and (2) revise compliance policies and procedures to incorporate the CIP requirements.

Lexology has posted an analysis of the proposal by attorneys at Latham and Watkins, LP.

Sallah Astarita & CoxRepresenting Advisors and Investors, Nationwide.
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Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.

He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page -, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.

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