Is Your RIA Ready For the 2026 FinCEN AML Requirements?
In a major step to curb illicit finance, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network has finalized two rules targeting investment advisers and the residential real estate market. The regulations, set to take effect on December 1, 2025 for real estate and January 1, 2026 for investment advisers, are intended to increase transparency and strengthen anti money laundering and counter terrorism financing safeguards across both industries.
The investment adviser rule expands the Bank Secrecy Act’s definition of financial institution to include certain advisers, requiring them to establish AML and CFT programs and file suspicious activity reports with FinCEN. It applies to registered investment advisers that are registered or required to register with the Securities and Exchange Commission as well as exempt reporting advisers that file reports with the SEC under specific criteria. The rule does not cover some mid sized multi state advisers or pension consultants, and for foreign based advisers it applies only to business conducted in the United States or services provided to U.S. persons or entities.
The residential real estate rule is designed to address vulnerabilities in all cash transactions. It requires real estate professionals to report transfers of residential properties when the buyer is a legal entity or trust, a measure aimed at stopping bad actors from using opaque ownership structures to launder money or conceal assets. Transactions involving direct purchases by individuals are excluded from the rule, which focuses on non financed deals that pose the greatest risk of abuse.
Both measures reflect the broader U.S. strategy on countering corruption released in 2021, which emphasized the need to close regulatory gaps that enable illicit financial flows. FinCEN has said the rules will reinforce the integrity of the American financial system, making it more difficult for criminals to exploit investment advisers or real estate transactions.
Industry participants are being urged to review the requirements now and prepare their compliance programs ahead of the deadlines. Regulators have made clear that the rules are not only about deterring misconduct but also about enlisting financial professionals in the effort to protect markets from being misused by illicit actors.
Source