Lawmakers Question Delay in New Compliance Rules for Investment Advisers
Three congressional Democrats asked the Treasury Department Sept. 18 to provide more information about its recent decision to delay and possibly revise a new anti-money-laundering rule for investment advisers (see 2507240021).
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In a letter to Treasury Secretary Scott Bessent, the lawmakers said they want to know which external parties “drove” Treasury’s decision, the steps the department will take to counter money laundering without the rule in place, and its plans to revisit the rule. The lawmakers said they’re concerned the Trump administration may plan to weaken or rescind the rule, even though “Treasury estimates that some advisers may manage billions of dollars ultimately controlled by sanctioned entities.”
The letter is signed by Senate Banking Committee ranking member Sen. Elizabeth Warren, D-Mass.; House Financial Services Committee ranking member Rep. Maxine Waters, D-Calif.; and Sen. Andy Kim, D-N.J., ranking member of the Senate Banking Subcommittee on National Security and International Trade and Finance. Treasury didn’t respond to a request for comment on the letter.
The rule was meant to close a loophole that the Biden administration said allowed criminal actors to hide money in the U.S. and let sanctioned companies access sensitive technology through investments in American firms (see 2408290024). Treasury’s Financial Crimes Enforcement Network said in July that delaying the rule "may help ease potential compliance costs for industry and reduce regulatory uncertainty while FinCEN undertakes a broader review" of the new regulations.