Under proposed regulations, SEC-registered investment advisers will not be able to simply rely on their existing anti-money laundering (AML) programs and will have to adopt a more formal approach than the risk-based AML programs many have implemented to date. Even those SEC-registered investment advisers that already have robust AML procedures in place will need to address certain key areas if the regulations are adopted in the form proposed. In a two-part guest series, William P. Barry, Kimberly Versace and Jamie Schafer, partner, counsel and associate, respectively, at Richards Kibbe & Orbe, analyze the anticipated role of investment advisers in the U.S. AML regulatory framework. The first article
discussed the genesis and impact of the proposed regulations that would apply to investment advisers. This article recommends steps investment advisers should take now to protect themselves in anticipation of the new regulations and ensure they can meet their AML compliance obligations. For more on the proposed AML regulations, see “How Hedge Fund Managers Can Establish an AML Program Under FinCEN’s Proposed Rule (Part Two of Two)
” (Nov. 12, 2015). For additional insight from practitioners at RK&O, see the two-part series entitled “Convertible Preferred Stock: How Preferred Is It?”: Part One
(Dec. 19, 2013); and Part Two
(Jan. 9, 2014).