The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a notice of proposed rulemaking on August 25, 2015,1 pertaining to all investment advisers registered or required to be registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended (Advisers Act). FinCEN’s proposed rules (Proposed Rules) would require such advisers to:

– Establish anti-money laundering (AML) compliance programs;

– Report suspicious activity to FinCEN pursuant to the Bank Secrecy Act (BSA); and

– Comply with certain reporting and recordkeeping requirements under the BSA.

FinCEN proposes to delegate to the SEC the authority to examine such advisers for compliance with these requirements.