Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 20 MAY 2024

FinCEN AML Alert Part 2: Customer Identification Program Requirements For Investment Advisers

Katten
Katten
Contributor
Katten

Katten

With client service at our core and a collective desire to foster an inclusive environment for a...

View firm profile
Explore more from Katten

On May 13, the Securities and Exchange Commission (SEC) and the US Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) jointly proposed...

United StatesGovernment, Public Sector
Adam Bolter
Adam Bolter
Nicholas Gervasi
Nicholas Gervasi
Author LinkedIn connections

On May 13, the Securities and Exchange Commission (SEC) and the US Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) jointly proposed to require that SEC-registered investment advisers (RIAs) and SEC-exempt reporting advisers (ERAs) adopt customer identification programs (CIPs), which include procedures to verify the identities of its customers (CIP Proposed Rule). CIPs are intended to aid in preventing, detecting and prosecuting money laundering and the financing of terrorism.

The CIP Proposed Rule complements FinCEN's February rule proposal (previously written about) that would designate RIAs and ERAs as "financial institutions" under the Bank Secrecy Act, subjecting them to AML/CFT program requirements and obligations to file suspicious activity reports (AML Proposed Rule). The comment period on the AML Proposed Rule closed in April.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

See more popular content from

Article

SBA Extends Deadline For Comments On Historic Overhaul Of Size Standards

The Small Business Administration has extended the comment period for two proposed rules that could dramatically reshape federal government contracting by significantly expanding the pool of entities eligible for small business set-aside procurements. With some size standard thresholds proposed to increase as much as tenfold, these changes would fundamentally alter the makeup of the small business contractor base.
United StatesGovernment, Public Sector
Crowell & Moring LLP
Crowell & Moring LLP
Article

D.C. Circuit Rules Pentagon Can Exclude Anthropic From Supply Chain

The U.S. Court of Appeals for the D.C. Circuit has ruled that the Department of War can exclude Anthropic from its supply chain under the Federal Acquisition Supply Chain Security Act, finding that the AI company's ability to manipulate its Claude model creates a supply chain risk. This decision contrasts with an earlier California district court ruling that blocked a similar designation under a different statute, creating a complex legal landscape for AI providers and government contractors.
United StatesGovernment, Public Sector
Taft, Stettinius & Hollister LLP
Taft, Stettinius & Hollister LLP
Article

Tennessee 2026 Midterm Election Results: Blackburn Wins Governor’s Race Amid Congressional And Legislative Upsets

Tennessee's 2026 midterm elections brought unexpected shifts to the state's political landscape, with Marsha Blackburn winning the governorship by the narrowest margin in over a century and Democrats flipping six House seats despite Republican supermajority retention. The results set the stage for significant leadership changes and new policy priorities when the 115th General Assembly convenes in January 2027.
United StatesGovernment, Public Sector
Bass, Berry & Sims PLC
Bass, Berry & Sims PLC
Article

State AG News: Consumer Fraud And Deceptive Practices (October 1-7, 2026)

State attorneys general across the nation are taking decisive legal action on multiple fronts, from challenging federal fuel economy rollbacks to pursuing pharmaceutical companies over misleading drug claims. This week's enforcement activities reveal coordinated multistate efforts alongside individual state actions targeting consumer protection, national security concerns, and social media platform accountability.
United StatesGovernment, Public Sector
Crowell & Moring LLP
Crowell & Moring LLP
Article

FMCSA MOTUS Implementation – Common Motor Carrier Concerns

The Federal Motor Carrier Safety Administration launched MOTUS in May 2026, replacing legacy registration platforms and fundamentally changing how motor carriers, freight brokers, and surface freight forwarders handle operating authority applications and license maintenance. While designed to combat fraud and streamline registration activities, the transition has created significant user experience challenges that threaten operating authority status and customer relationships for transportation service prov
United StatesGovernment, Public Sector
Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
Article

BIOSECURE Act Update: Court Enjoins WuXi AppTec’s 1260H Designation, but Strategic and Compliance Clocks Keep Running

The U.S. District Court for the District of Columbia has preliminarily enjoined the Department of War from enforcing WuXi AppTec's Section 1260H designation, finding the agency misread its evidence on state and military affiliation. However, this ruling does not close alternative pathways to biotechnology company of concern (BCC) designation under the BIOSECURE Act, and earlier supply-chain restrictions continue to drive near-term compliance decisions with a critical June 30, 2027 deadline for sub-tier supp
United StatesGovernment, Public Sector
Greenberg Traurig
Greenberg Traurig
Article

OFAC Broadens Cuba Sanctions And Restricts Payments And Travel

The U.S. Treasury Department's Office of Foreign Assets Control has implemented sweeping changes to Cuba sanctions, introducing a new regulatory framework that extends restrictions beyond U.S. persons to foreign entities and financial institutions. These measures eliminate key banking authorizations, expand transaction prohibitions to include intermediary payments, and significantly narrow travel permissions, creating new compliance challenges for businesses operating in or through Cuba-related channels.
United StatesGovernment, Public Sector
Barnes & Thornburg LLP
Barnes & Thornburg LLP
Article

FDA Seeks Public Feedback On Regulatory Approach For Generative AI-Enabled Medical Devices

The U.S. Food and Drug Administration has released a discussion paper outlining its initial framework for regulating generative AI-enabled medical devices, proposing a two-axis risk assessment approach and a novel competency-based premarket evaluation system. With public comments due by October 19, 2026, this represents a critical opportunity for device manufacturers and stakeholders to shape the regulatory landscape for this transformative technology.
United StatesFood, Drugs, Healthcare, Life Sciences
Katten
Katten
Article

The CFTC Sets Its Sights On Retail Leveraged Crypto Transactions

The CFTC has issued an advance notice of proposed rulemaking outlining frameworks for regulating retail crypto asset transactions involving leverage, margin, or financing. The proposal seeks to clarify how existing commodity exchange law applies to crypto markets while creating tailored requirements for exchanges, intermediaries, and clearing organizations. This initiative arrives alongside parallel regulatory efforts by the SEC as federal agencies work to establish comprehensive oversight of digital asset
United StatesFinance and Banking
Katten
Katten
Article

FCA Finalises Cryptoasset Perimeter Guidance Ahead Of The New UK Regime

The Financial Conduct Authority has released comprehensive perimeter guidance for the UK's new regulated cryptoasset activities regime, clarifying when firms will need authorization and how the regulatory framework applies to qualifying cryptoassets and stablecoins. The guidance addresses critical questions about scope, territorial application, and the narrower "by way of business" test that determines which entities fall under the new regulatory requirements.
United KingdomFinance and Banking
Katten
Katten
Article

The SEC’s Long-Awaited Crypto Proposal

The SEC has proposed Regulation Crypto Assets, a purpose-built framework that creates tailored exemptions for raising capital with crypto assets and establishes conditions under which those assets can cease being subject to investment contract classification under federal securities laws. Will this new regulatory approach successfully balance innovation in digital asset markets with investor protection, or will jurisdictional questions and state law preemption challenges limit its effectiveness?
United StatesFinance and Banking
Katten
Katten
Article

California Partially Eliminates California Invasion Of Privacy Act Claims Faced By Many Companies

California has amended its Invasion of Privacy Act to eliminate private lawsuits under the pen register and trap-and-trace provision for website tracking technology, effective January 2027 with retroactive application. While this provides relief from certain digital tracking claims, companies still face exposure under CIPA's wiretapping and eavesdropping provisions, as well as other federal and state laws.
United StatesPrivacy
Katten
Katten
Article

The AI Apocalypse: ‘I’m Sorry, Dave. I’m Afraid I Can’t Do That’

When OpenAI's o3 model sabotaged shutdown mechanisms in testing, headlines warned of machines developing survival instincts. But the real story mirrors HAL 9000's malfunction in 2001: A Space Odyssey—not emergent evil, but conflicting instructions from human designers. This analysis argues that AI safety failures are disclosure problems, not horror stories, and proposes a framework requiring published principles, transparent instruction hierarchies, independent testing, and enforceable liability.
United StatesTechnology
Katten
Katten
Article

Data Center Growth Fuels AI-Related Patent Disputes

The explosive growth of AI-driven data centers has sparked a surge in patent infringement litigation targeting the specialized infrastructure that powers these facilities. From advanced cooling systems and high-performance processors to networking equipment and power management technologies, patent holders are increasingly asserting their rights against data center operators who integrate these complex systems. What makes these facilities such attractive targets for patent enforcement, and how might ongoing
United StatesIntellectual Property
Katten
Katten