Written by: David Stier, Eric Forni, Katrina Hausfeld, David Solander, Lauren O’Neil
On May 13, 2024, the Securities and Exchange Commission (SEC) and the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) jointly proposed a new rule that would impose requirements on SEC-registered investment advisers (RIAs) and exempt reporting advisers (ERAs) to establish, record, and maintain customer identification programs (CIPs) under the US Bank Secrecy Act (BSA) and related regulations.
The SEC and FinCEN designed the proposal to target illicit actors, illicit funds, and illicit financial activity involving customers of investment advisers by increasing the anti-money laundering and countering the financing of terrorism (AML/CFT) requirements for the investment adviser sector.
Read further for details and key takeaways.