Investment Adviser Compliance with Amended AML Rule is Required by January 1, 2016

An amended Anti-Money Laundering Rule (“AML Rule”) will subject many investment advisers ("Covered IAs") to AML requirements, including the adoption of AML procedures, the filing of Suspicious Activity Reports ("SARs"), and other requirements, including:

1. The establishment of a written AML program that is "risk-based" and "reasonably designed to prevent the investment adviser from being used for money laundering, terrorist financing, or other illicit finance activities."
2. The development of internal policies, procedures, and controls. Covered IAs must review services and products offered and the nature of their customers to identify potential susceptibility to money laundering and other illicit activity.
3. The designation of a qualified person as the AML Compliance Officer (“AMLCO”) responsible for implementing and monitoring AML requirements.
4. The establishment of an ongoing employee training program to ensure that employees are trained in AML requirements and trained to recognize signs of potential money laundering and other illicit activity.
5. An independent audit function to test the programs.
6. To comply with the AML Rule, AML programs must be approved, in writing, by the adviser's board of directors or similar body, and the program must be made available for inspection by FinCEN or the SEC.

"To comply with the AML Rule, AML programs must be approved, in writing, by the adviser's board of directors or similar body"