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News / FinCEN And SEC Mandate Customer ID Program For Investment Advisers

FinCEN And SEC Mandate Customer ID Program For Investment Advisers

The amended regulation demands RIAs, and ERAs to obtain, record, and preserve documentation of a written customer identification program.

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On May 13, 2024, the Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN) presented a regulation that preceded the implementation of customer identification programs (CIPs) for registered investment advisors (RIAs). It is another element of a well-coordinated effort to address the apparent gaps in Federal anti-money laundering regulations.

The proposed rule, jointly issued by the two US regulators, advises exempt reporting advisers (ERAs) and registered investment