Advisors with high-profile clients can relax as regulatory efforts to combat financial malfeasance in the industry are delayed for at least two years. The Treasury Department plans to push back new anti-money laundering requirements, aiming to revisit the rule’s scope before implementation, easing concerns over increased oversight and compliance costs.

The postponed AML rule, adopted last summer, targets US advisory firms’ involvement in foreign corruption, tax evasion, and fraud. Treasury officials cite advisors as gateways for sanctioned parties like Russian oligarchs and facilitators for China and Russia to access sensitive technology. The rule requires risk-based AML programs, filing Suspicious Activity Reports, and maintaining fund transfer records.

Despite advisors being perceived as low AML risk, investor advocates criticize the delay, expressing concerns over the potential for money laundering and financial crime exploitation. The decision to postpone the rule has sparked debate, with some viewing it as a setback in combating illicit financial activities, while others welcome the extra time for further assessment and clarification.

Read more at Yahoo Finance: Treasury Delays Anti-Money-Laundering Rule to 2028