Over 200 investment professionals, representing firms with anywhere from $50 million to $3 billion AUM, tuned in live to our webinar on the latest AML/CFT requirements from FinCEN. Under the final rule, “investment adviser” is now under the definition of a covered “financial institution,” meaning many GPs are navigating these regulations for the first time.
While over 70% of attendees said they’re confident in their ability to handle upcoming regulatory changes, only 13% said they currently have a comprehensive AML/KYC program in place. Nearly 30% said they have some version of an AML/KYC program in place, but that it could use some improvements.
Beyond the AML/CFT ruling, FinCEN is considering proposed rules on Customer Identification Programs (CIP) and Customer Due Diligence (CDD). These rules would require registered investment advisers to gather documentation from LPs during onboarding to verify their identities and screen for potential risks. William Stern, Partner at Goodwin Procter LLP, believes these are just the first in a series of rules inspired by banking standards to safeguard against financial crime that will ultimately come to the adviser space.
Is your firm as confident? Watch the full webinar to learn more.
As the regulators propose and implement more stringent compliance requirements, Juniper Square can help fund managers stay ahead of the evolving regulatory landscape for years to come. Learn more about our AML and KYC solutions →