Proposed New AML Regulations for Investment Advisors

AMLA proposal requiring SEC Registered Investment Advisors to establish AML programs has been submitted for comment by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) for public comment, and the industry is buzzing about the impact of these new AML regulations.

FinCEN is also proposing to include investment advisors within the definition of “Financial Institution” in the Bank Secrecy Act (BSA). This will result in requiring advisors to comply with the BSA, including reporting suspicious activities to the federal government and filing Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs). In addition, under the USA Patriot Act of 2001, financial institutions must, among other things, adopt written policies and procedures to detect and deter money laundering, designate an Anti-Money Laundering officer, train personnel and independently test their AML programs.

What You Should Do:

Educate yourself on the proposed requirements so you can make sure you stay ahead of the regulatory curve. Oyster Consulting has significant experience implementing AML programs tailored to your business as part of a robust and thorough compliance program. We would be happy to discuss with you how to establish an AML compliance program that aligns your firm’s business model and operating environment to all of the applicable requirements of the USA PATRIOT Act and the Bank Secrecy Act. Included in an Oyster AML Compliance Program are:

  • AML Program Development, Approval, and Oversight
  • Customer Identity Program implementation
  • Bank Secrecy Act Compliance
  • Review of Customer Accounts, including high-risk accounts
  • Office of Foreign Assets Control and other list checking
  • Suspicious Activity Reporting
  • Currency Transaction Reporting
  • Recordkeeping under the “travel rules”
  • Program Testing
  • Training and Education
  • Surveillance System Implementation and Configuration

The Oyster Difference:

Oyster’s employees have been CCOs, Compliance Officers and consultants for RIAs of all shapes and sizes. We have also developed, implemented, tested and remediated AML programs and served as AML Compliance Officers for financial services companies. We conduct training that is not “check the box,” but specifically targeted to your audience. When you retain the services of one Oyster consultant, you also get the combined knowledge and experience of them all. That is how Oyster creates efficient and effective AML compliance programs.


Information for this blog was provided by Ann Griffith, Mary Catherine Wilck-Pond, Polly Cordle, Michelle Craft and Harriet Britt