Investment Adviser AML Rule: Delayed to 2028 Explained

The US rule that would bring many investment advisers inside the anti-money laundering system has been postponed. FinCEN's final rule of 31 December 2025 postponed the effective date from 1 January 2026 to 1 January 2028. This guide explains what the rule covers, what the delay rule says, and what firms should watch. It follows our guides to the April 2026 proposed program rule, the bank AML program rule.

The original rule

According to the Federal Register notice, the investment adviser AML rule was published on 4 September 2024. It treats certain investment advisers as financial institutions under the Bank Secrecy Act. The notice describes it as requiring covered advisers to establish AML and counter-terrorist financing programs, report suspicious activity and keep relevant records, among other requirements. Its original effective date was 1 January 2026. The rule applies to registered investment advisers and exempt reporting advisers.

The delay

FinCEN proposed the delay on 22 September 2025 and issued an exemptive relief order on 5 August 2025. The final delay rule was published in the Federal Register on 2 January 2026, and FinCEN's news release is dated 31 December 2025. The AML obligations are now effective on 1 January 2028. The delay rule takes effect on publication under a good-cause finding, so it did not need the usual 30-day wait. FinCEN received 22 comments on the proposal.

Why FinCEN delayed it

The Federal Register notice gives several reasons: consistency with the Administration's deregulatory policy, including reducing unnecessary or duplicative burden; a review to confirm the rule balances costs and benefits and is tailored to the diverse business models and risk profiles of advisers; and easing compliance costs and regulatory uncertainty. FinCEN acknowledged that a delay may prolong exposure to illicit finance risks in the sector, and rejected commenters' arguments against delay.

The numbers in the notice

The notice says that at year-end 2024 there were 15,870 registered investment advisers and 5,743 exempt reporting advisers. Since the rule's publication, covered registered advisers rose by 438 and exempt reporting advisers fell by 103. FinCEN estimates a pro forma cost reduction of about $1.45 billion in 2022 dollars from delaying the 2026 and 2027 costs, with annualised savings of $183.01 million at a 7 percent discount rate and $153.06 million at 3 percent. The notice caveats that the estimates may be overstated and that the overall effects are difficult to quantify meaningfully.

Who is affected

The notice gives a baseline of expected covered advisers, with a net increase of 335 covered advisers, of which six are expected to be small. It says small covered advisers were about 1.9 percent of covered advisers originally, and that the updated count of 391 small covered advisers is about 2.9 percent of the 13,430 small advisers. Treasury's 2024 Investment Adviser Risk Assessment, dated 1 February 2024, describes the illicit finance risks the rule targets. The 22 comments came from trade groups, transparency organisations, law firms, non-profits, advisory firms and individuals. The notice says comments are no longer accepted, and it does not state the length of the comment period, so we cannot say how long advisers had to respond.

How FinCEN classifies the delay

The notice treats the delay as a deregulatory action, with about $88.88 million in annualised savings at a 7 percent discount rate. That framing matters for readers: it signals that the delay is part of a wider policy of reducing regulatory burden, as the reasons above explain, and not a finding that the risk has fallen.

What FinCEN says it will do next

FinCEN said it will undertake a broader review of the rule to tailor it while still protecting the financial system, and will consider the timing of related rulemakings, including the separate customer identification program rulemaking for investment advisers, so that future rules are coordinated. The notice does not commit FinCEN to issuing the guidance commenters requested on section 312, SAR sharing or section 314(b), which our guide to section 314(b) explains.

What firms should do in the meantime: our suggestions

These steps are our suggestions, not requirements in the rule.

• Do not read the delay as removal. The notice says FinCEN intends a review, not a repeal, and the effective date is now 1 January 2028.
• Track the customer identification rulemaking for advisers and the broader review.
• Where firms already have voluntary AML controls, keep them running, since the date could change again.

For structured learning, browse our CPD courses.

What we could not confirm

We read FinCEN's news release and the Federal Register notice, which is an unofficial rendition, so check the official edition for legal purposes. The notice did not set out the coverage definitions in full or describe the funds transfer and travel rule obligations. We did not read the exemptive relief order or the 22 comments. The date could change again, so check FinCEN's website. This post is general information, not legal advice.