Section 1032.210 - [Effective 1/1/2026] Anti-money laundering/countering the financing of terrorism programs for investment advisers(a)Anti-money laundering/countering the financing of terrorism program requirements for investment advisers.(1) Each investment adviser shall develop and implement a written anti-money laundering/countering the financing of terrorism (AML/CFT) 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 and to achieve and monitor compliance with the applicable provisions of the Bank Secrecy Act (as defined in 31 CFR 1010.100(e) ) and the implementing regulations promulgated thereunder by the Department of the Treasury. The investment adviser may deem the requirements in this subpart satisfied for any:(i) Mutual fund (as defined in 31 CFR 1010.100(gg) ),(ii) Collective investment fund that is subject to the requirements of 12 CFR 9.18 (or other applicable law that incorporates the requirements of 12 CFR 9.18 ), or(iii) Any other investment adviser (as defined in 31 CFR 1010.100(nnn) ), provided that such mutual fund, collective investment fund, or other investment adviser is advised by the investment adviser and subject to an AML/CFT program requirement under this chapter.(2) Each investment adviser's AML/CFT program must be approved in writing by its board of directors or trustees, or if it does not have one, by its sole proprietor, general partner, trustee, or other persons that have functions similar to a board of directors. An investment adviser shall make its anti-money laundering/countering the financing of terrorism program available for inspection by FinCEN or the Securities and Exchange Commission.(b)Minimum requirements. The AML/CFT program shall at a minimum: (1) Establish and implement internal policies, procedures, and controls reasonably designed to prevent the investment adviser from being used for money laundering, terrorist financing, or other illicit finance activities and to achieve compliance with the applicable provisions of the Bank Secrecy Act and implementing regulations in this chapter;(2) Provide for independent testing for compliance to be conducted by the investment adviser's personnel or by a qualified outside party;(3) Designate a person or persons responsible for implementing and monitoring the operations and internal controls of the program;(4) Provide ongoing training for appropriate persons; and(5) Implement appropriate risk-based procedures for conducting ongoing customer due diligence, to include, but not be limited to:(i) Understanding the nature and purpose of customer relationships for the purpose of developing a customer risk profile; and(ii) Conducting ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information.(c)Effective date. An investment adviser must develop and implement an AML/CFT program that complies with the requirements of this section on or before January 1, 2026.