Effective 1 January 2026, the Financial Crimes Enforcement Network (FinCEN) has issued a final rule bringing Registered Investment Advisers (RIAs) and Exempt Reporting Advisers (ERAs) under the definition of “financial institution” pursuant to the Bank Secrecy Act (BSA). This rule requires covered advisers to establish and maintain Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) programmes, file Suspicious Activity Reports (SARs), and comply with record keeping and reporting obligations under 31 CFR Part 1010 and the newly added Part 1032.

Travel & Record keeping Rules

The rule mandates compliance with the record keeping and Travel Rules for transmittals of funds equal to or exceeding $3,000. Advisers must retain detailed transaction records, including identifying information about clients, originators, and recipients. These requirements apply to both domestic and foreign-located advisers, where the activity involves US personnel, US persons, or foreign funds with US investors.

Exemptions & Definitions

FinCEN has excluded certain adviser types from the rule, including:

• State-registered investment advisers

• Family offices

• Foreign private advisers under the Investment Advisers Act

Certain low-risk RIAs are also excluded — such as those registered only due to mid-sized status, multi-state activity, pension consulting, or those reporting zero Assets Under Management (AUM).

International Advisers

Foreign advisers fall under the rule only for activities with a US nexus, such as offering services to US persons, operating via US-based staff, or advising foreign private funds with US investors. FinCEN requires advisers to identify US persons even through layered ownership structures and apply AML/CFT controls accordingly.

Implementation & Supervision

Advisers must implement a written AML/CFT programme tailored to their risk profile. The Securities and Exchange Commission (SEC) is designated as the examining authority. Compliance is required by 1 January 2026, and advisers must retain records supporting their application of the rule.

Conclusion: WTR Compliance Integration

This final rule marks a significant expansion of US anti-money laundering regulation by bringing investment advisers into scope under the Bank Secrecy Act. Through the application of the Recordkeeping and Travel Rules, advisers are now required to maintain detailed information on fund transmittals and implement formal AML/CFT controls.

By extending these requirements to foreign-located advisers with a defined US nexus, FinCEN reinforces the traceability of funds moving through or touching the US financial system. The rule provides mechanisms for monitoring adviser activities, promoting consistency across regulated financial entities, and enhancing data availability for law enforcement and national security purposes.

Although the regulation makes no explicit reference to FATF Recommendation 16, it operationalises many of the same principles. This integration of WTR obligations into the adviser sector demonstrates a regulatory shift towards broader financial transparency and transactional accountability under domestic law.