The AICPA recently submitted a letter to Treasury's Financial Crimes Enforcement Network (FinCEN) expressing concern over the potential impact of recently proposed regulations on small registered investment advisers (RIAs).
The proposed rules, issued in February, would include certain investment advisers in the definition of "financial institution" for purposes of the Bank Secrecy Act.
The rules would require covered investment advisers to report "suspicious activity" to FinCEN and bring those advisers within the standards of FinCEN's anti-money-laundering and countering the financing of terrorism programs.
The AICPA letter asked FinCEN to reassess the proposed regulations to ensure an appropriate balance between regulatory objectives and practical realities faced by RIAs, particularly related to small firm RIAs. Read more.