On October 30, 2008, FinCEN announced that it withdrew its proposed anti-money laundering (AML) program rules for unregistered investment companies, commodity trading advisers, and investment advisers. The rules, which were initially proposed in 2002 and 2003, would have required these entities to establish and implement an AML program. FinCEN cited efficiency and the “passage of time” since the rules were first proposed as among the reasons for the withdrawal.
While noting it would continue to consider whether and to what extent it should impose AML requirements on these entities, FinCEN stated that it would not implement any AML program requirements without first publishing a new proposal and allowing interested parties an opportunity to comment on its contents.
In announcing the withdrawal of the proposed rules, FinCEN also noted that the activity of these entities is not entirely outside the current AML regulatory regime as their transactions are conducted through other financial institutions that are subject to AML regulations, such as banks, broker-dealers, and futures commission merchants. In addition, these entities continue to be subject to U.S. criminal money laundering statutes as well as the economic and trade sanctions programs administered by OFAC.