January 7, 2026
What happened?
The Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) issued a final rulemaking to extend the effective date of the AML/CFT Rule until January 1, 2028. In July of 2025, FinCEN announced its intention to postpone the effective date, and later issued an order of exemptive relief (see prior coverage and the order). The order reasserted FinCEN’s intention to complete a proposed rulemaking to propose a new effective date no earlier than January 1, 2028. Now, after a government shutdown and a notice of proposed rulemaking, that final rule is here.
In addition to formally setting January 1, 2028, as the new effective date, this rulemaking also gathered additional public comments. Many commenters supported the delay and the opportunity to receive clarification from FinCEN on the application of aspects of the AML/CFT Rule. Also of note were comments seeking consideration of the timing of the AML Customer Identification Program Rule (“AML/CIP”), to which FinCEN stated it does intend to consider this timing issue to “ensure appropriate coordination efforts and to reduce unnecessary costs and uncertainty.”
What does this mean for me?
As promised, FinCEN has formally pushed the effective date of AML/CFT to January 1, 2028. Now it will be a waiting game to see how the SEC and FinCEN review the AML/CFT Rule in light of AML/CIP and current policy goals. As originally written, both rules would create significant costs for compliance programs. The burden of training and the time necessary to implement and maintain necessary procedures, along with the cost of new systems and resources to comply, had already made the AML rules a costly undertaking for advisers.
The deadline is extended, but whatever shape these rules ultimately take will cast a shadow over compliance programs and the effort to prepare and adequately resource firms to meet AML requirements. We will continue to monitor regulatory updates and new developments that impact investment advisors. If you have questions, contact us. Fairview is here to help.
