Breaking News

U.S. officials unveiled a proposal Tuesday that would subject “certain investment advisers” to anti-money laundering and counterterrorist financing requirements.

The 216-page notice of proposed rulemaking authored by the Treasury Department’s Financial Crimes Enforcement Network, also known as FinCEN, would formally classify investment advisers that have registered with the Securities and Exchange Commission, or SEC, as financial institutions under the Bank Secrecy Act, thereby obligating them to build AML programs, vet customers and monitor their transactions.

Under the proposed rule, SEC-registered investment advisers would flag potentially illicit payments to FinCEN, and file and maintain records pertaining to the transmittal of funds.

Treasury also published a risk assessment Tuesday for the U.S. securities industry, identifying specific threats of illicit finance for financial services companies that cater to investors, wealthy individuals, and private and public institutions.