{"id":1522,"date":"2025-06-18T15:59:28","date_gmt":"2025-06-18T15:59:28","guid":{"rendered":"https:\/\/iqeq.com\/us\/insights\/fincen-final-rule-on-aml-cft-requirements-for-investment-advisers-effective-january-1-2026\/"},"modified":"2026-03-13T12:14:28","modified_gmt":"2026-03-13T12:14:28","slug":"fincen-final-rule-on-aml-cft-requirements-for-investment-advisers-effective-january-1-2026","status":"publish","type":"post","link":"https:\/\/iqeq.com\/us\/insights\/fincen-final-rule-on-aml-cft-requirements-for-investment-advisers-effective-january-1-2026\/","title":{"rendered":"Understanding FinCEN&#8217;s final rule on AML\/CFT requirements for investment advisers, effective January 1, 2026\u00a0"},"content":{"rendered":"<section class=\"text-block standard-spacing  \">    <div class=\"container fade-in\">\n        <p><i><span data-contrast=\"auto\">By Richard Casciani, Managing Director, U.S.<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">On September 4, 2024, the U.S. Department of the Treasury&#8217;s Financial Crimes Enforcement Network (FinCEN) issued a final rule (the \u201cFinal Rule\u201d) mandating certain anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements for most investment advisers registered with the U.S. Securities and Exchange Commission (SEC) (registered investment advisers, or RIAs) and investment advisers that report to the SEC as exempt reporting advisers (ERAs). The Final Rule has a compliance date of January 1, 2026 and requires those in scope to adopt AML\/CFT compliance programs and monitor for and report suspicious activity to FinCEN.<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h2>Which investment advisers are covered by or exempt from the Final Rule?<\/h2>\n<p>The <a href=\"https:\/\/iqeq.com\/services\/aml\/\">anti-money laundering<\/a> and countering the financing of terrorism Final Rule applies to SEC RIAs and SEC ERAs with a few exceptions. The following advisers are exempt:<\/p>\n<ul>\n<li><span data-contrast=\"auto\">Mid-size advisers<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Multi-state advisers<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Pension consultants<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Family offices<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Advisers of sub-advised funds only<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">RIAs that are not required to report any assets under management (AUM) to the SEC<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">With respect to foreign private advisers, the Final Rule applies to activities that take place in the U.S. (i.e. through U.S. employee(s) or office(s)\/branch(es)) or with respect to a U.S. fund or U.S. investors.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h2>What is required for an AML\/CFT program?<\/h2>\n            <\/div>\n<\/section>\n\n<section class=\"accordion standard-spacing\">\n    <div class=\"container\">\n            <\/div>\n<\/section>\n\n<section class=\"accordion standard-spacing\">\n    <div class=\"container\">\n                    <div class=\"accordion\">\n                                    <div class=\"accordion-item open\">\n                        <div class=\"title\">\n                            <p>1. Establish and implement policies and procedures<\/p>\n                            <div class=\"toggle\"><\/div>\n                        <\/div>\n                        <div class=\"expanded\">\n                            <div class=\"inner\">\n                                <p><span data-contrast=\"auto\">Covered advisers must adopt and implement a risk-based and reasonably designed AML\/CFT program.\u00a0 Covered advisers with existing \u201cbest practice\u201d AML programs will likely need to enhance their policies and procedures.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Key points to note:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\">The program must be approved in writing by the covered adviser\u2019s board of directors, sole proprietor, general partner, trustee or similar party<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">It must be \u201crisk-based and reasonably designed to prevent the investment adviser from being used for money laundering, terrorist financing, or other illicit finance activities\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">\u201cRisk-based\u201d means the program will vary depending on the size of the adviser and risk level of its advisory activities and customers<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Consider things such as: types of advisory services provided, nature of customers, investment products being offered, intermediaries used, and geographic location of customers and investments<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"accordion-item\">\n                        <div class=\"title\">\n                            <p>2. Conduct independent compliance testing<\/p>\n                            <div class=\"toggle\"><\/div>\n                        <\/div>\n                        <div class=\"expanded\">\n                            <div class=\"inner\">\n                                <p><span data-contrast=\"auto\">Covered advisers will be required to arrange for independent testing to be conducted by a qualified outside party or an internal function not involved in the operation and oversight of the AML\/CFT program.\u00a0 The frequency of testing is not specified but is determined based on risk. Annually is likely sufficient for low or mid-level risk profiles.\u00a0 Due to the strict requirement that this testing be conducted by an independent party, it\u2019s likely that a third party (i.e. compliance consultant or administrator) will need to be engaged for this provision.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"accordion-item\">\n                        <div class=\"title\">\n                            <p>3. Designate an AML officer<\/p>\n                            <div class=\"toggle\"><\/div>\n                        <\/div>\n                        <div class=\"expanded\">\n                            <div class=\"inner\">\n                                <p><span data-contrast=\"auto\">Covered advisers must designate a responsible person or persons (including in a committee) to implement and monitor the operations and internal controls of the AML\/CFT program. The person must be an employee of either the covered adviser or an affiliate; the AML officer cannot be an external party.\u00a0 Such person(s) should be knowledgeable and competent regarding AML requirements, the adviser\u2019s policies, and relevant risks.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Additionally, the AML officer should have sufficient authority, decision-making capability, independence, and access to compliance resources.\u00a0 While it is permissible for the Chief Compliance Officer to also serve as AML Officer, covered advisers should be mindful of the independent testing requirement.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"accordion-item\">\n                        <div class=\"title\">\n                            <p>4. Provide ongoing training<\/p>\n                            <div class=\"toggle\"><\/div>\n                        <\/div>\n                        <div class=\"expanded\">\n                            <div class=\"inner\">\n                                <p><span data-contrast=\"auto\">Covered advisers will be required to conduct training addressing AML\/CFT requirements and illicit finance risks as well as job-specific guidance tailored to particular employees\u2019 roles and functions. The Final Rule does not prescribe a particular model for the training \u2013 sessions can be virtual, web-based, led by external party, etc.\u00a0 Generally, annual training sessions are sufficient, and upon hire for any new employees.<\/span><\/p>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                                    <div class=\"accordion-item\">\n                        <div class=\"title\">\n                            <p>5. Conducting ongoing customer due diligence<\/p>\n                            <div class=\"toggle\"><\/div>\n                        <\/div>\n                        <div class=\"expanded\">\n                            <div class=\"inner\">\n                                <p><span data-contrast=\"auto\">The Final Rule requires covered advisers to conduct ongoing customer (i.e. investor) due diligence, which includes creating a \u201ccustomer risk profile\u201d for each investor.\u00a0 Covered advisers must gather information such as the reason the investor is seeking advisory services, net worth, domicile, citizenship, principal occupation or business, status as a politically exposed person (PEP) and the source of funds.\u00a0 For entities, covered advisers should consider information including the type of entity, the jurisdiction in which it is domiciled and the regulatory regime of that jurisdiction.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">There is no requirement to obtain beneficial ownership for entities, but advisers must look at the entity investor\u2019s risk profile and determine if obtaining such data is necessary.\u00a0 FinCEN may consider a subsequent rule imposing such a requirement.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Notably, the Final Rule specifies that advisers can evaluate certain lower risk relationships through consideration of \u201cinherent or self-evident information\u201d (i.e. basic details that can be derived from the nature and purpose of a customer relationship), including the type of customer or type of account, service or product.\u00a0 While there is no requirement to update information on a regular, pre-determined basis, it may be appropriate to do so based on an investor\u2019s risk profile.\u00a0 Similarly, there\u2019s no requirement to conduct media or screening reviews, but doing so may be appropriate based on an investor\u2019s risk profile.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Ongoing due diligence does not necessarily require advisers to collect \u201cknow your customer\u201d (KYC) documents every year.\u00a0 This determination would again be based on an investor\u2019s risk profile.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h4>Do these requirements apply beyond the underlying investors of a private fund?<\/h4>\n<p><span data-contrast=\"auto\">Importantly, the customer due diligence requirement of the Final Rule applies to investors and does <\/span><span data-contrast=\"auto\">not<\/span><span data-contrast=\"auto\"> extend to portfolio investments or service providers.\u00a0 However, the suspicious activity reporting requirement (summarized below) may apply beyond the investor level if there is a suspicious transaction at the portfolio company or investment level, which could trigger a reporting obligation for the adviser.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n                            <\/div>\n                        <\/div>\n                    <\/div>\n                            <\/div>\n            <\/div>\n<\/section>\n\n<section class=\"text-block standard-spacing  \">    <div class=\"container fade-in\">\n        <h2>What reports must be submitted?<\/h2>\n<p><span data-contrast=\"auto\">Covered advisers will be required to comply with reporting obligations related to currency transactions or suspicious activity.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"17\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Suspicious Activity Reports (SARs)<\/span><\/b><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">The Final Rule requires covered advisers to file SARs with FinCEN for any suspicious transaction (or pattern of transactions) conducted or attempted by, at or through the adviser that involves or aggregates at least $5,000 in funds or other assets. SARs must be filed with FinCEN no later than 30 days after initial detection of the triggering event.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Covered advisers may need to file SARs on suspicious activity involving private fund investments (e.g. funding through multiple wires from different accounts) or portfolio companies (e.g. fund investors seeking information about a portfolio investment that could indicate illicit technology transfer concerns).\u00a0 However, non-advisory activities (i.e. if an adviser\u2019s staff maintain management roles at portfolio companies) are not in scope of an adviser\u2019s SAR filing obligation.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Covered advisers must ensure confidentiality of SARs; such information generally cannot be shared with external parties, including service providers.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"17\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Currency Transaction Reports (CTRs)<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Covered advisers will be required to file a CTR with FinCEN for certain currency transactions of more than $10,000. This will replace the existing requirement that advisers report currency-related transactions on Form 8300.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">More than one adviser may have an obligation to report the same transaction.\u00a0 Such reporting can be done in one filing if the report includes the names of both advisers, states that it is a \u201cjoint filing,\u201d and each adviser maintains a copy of the filing.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:720,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<h2>What are the immediate action items?<\/h2>\n<p><span data-contrast=\"auto\">In preparation for the Final Rule\u2019s compliance deadline, covered advisers should be addressing the following items:\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li><b><span data-contrast=\"auto\">Determine budget:<\/span><\/b><span data-contrast=\"auto\"> Covered advisers should be assessing their budgets in consideration of various factors, including software licensing (if the adviser will conduct AML checks internally) and engaging external provider(s) to:<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span>\n<ul>\n<li><span data-contrast=\"auto\">Draft policies and procedures<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Conduct testing<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Conduct annual training<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Conduct ongoing due diligence<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b><span data-contrast=\"auto\">Draft policies and procedures:<\/span><\/b><span data-contrast=\"auto\"> Covered advisers may elect to engage a third-party provider to assist with developing (or enhancing existing) policies and procedures to ensure compliance with the Final Rule<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Determine who will be the AML officer:<\/span><\/b><span data-contrast=\"auto\"> Covered advisers should determine which employee will be designated the AML officer and confirm the record-keeping process if multiple parties will be involved<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Determine who will conduct testing: <\/span><\/b><span data-contrast=\"auto\">Covered advisers will likely need to engage a third-party provider for testing, given the need for independent testing<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Schedule training for existing employees before year-end:<\/span><\/b><span data-contrast=\"auto\"> Advisers should consider adding AML requirements to existing compliance training or separately implementing such training<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Create a customer risk profile for each investor:<\/span><\/b><span data-contrast=\"auto\"> This requirement could potentially be the most arduous provision of the Final Rule, especially for advisers to private funds with a broad investor base.\u00a0 So, advisers should prioritize accordingly.\u00a0 The risk profile of each investor will determine the level of ongoing customer due diligence<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559738&quot;:120,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Update service provider agreements:<\/span><\/b><span data-contrast=\"auto\"> Covered advisers should determine if amendments are needed with service providers like fund administrators or compliance consultants<\/span><span data-ccp-props=\"{&quot;134233279&quot;:false,&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<h2>How can IQ-EQ assist?<\/h2>\n<p><span data-contrast=\"auto\">IQ-EQ\u2019s compliance and AML teams can provide a range of assistance to covered advisers to prepare for and comply with the ongoing requirements of the Final Rule:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\">Drafting tailored AML policies and procedures<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Initial AML risk analysis and testing process buildout and implementation \u2013\u00a0 reviewing advisers\u2019 business profiles, including types of advisory services provided by the firm, the nature of its customers and the applicable customer risk profiles; assisting with the creation of customer risk profiles; designing a testing regime, which would include a review of high- versus low-risk investors and applicable ongoing monitoring<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Conducting annual or quarterly AML testing, as required<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Conducting recurring AML\/KYC investor reviews<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/li>\n<\/ul>\n<h4><b><span data-contrast=\"auto\">IQ-EQ will continue to monitor any further developments and is ready to assist with developing policy or advising on related needs. <\/span><\/b><a href=\"https:\/\/iqeq.com\/us\/services\/compliance-consulting-u-s\/\"><b><span data-contrast=\"none\">Click here<\/span><\/b><\/a><b><span data-contrast=\"auto\"> to discover our U.S. regulatory compliance services and contact our expert team today.<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:120,&quot;335559740&quot;:276}\">\u00a0<\/span><\/h4>\n            <\/div>\n<\/section>","protected":false},"excerpt":{"rendered":"","protected":false},"author":51,"featured_media":1523,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[1],"tags":[],"expertise":[13],"service_category":[],"class_list":["post-1522","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding FinCEN&#039;s final rule on AML\/CFT requirements for investment advisers, effective January 1, 2026\u00a0 | IQ-EQ U.S.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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