As President Donald Trump continues his rollback of regulations, the fate of one that would hold financial advisors accountable for money laundering is uncertain.
In 2015, the Financial Crimes Enforcement Network, an arm of the Treasury Department charged with thwarting money laundering, proposed a rule that would require advisors registered with the Securities and Exchange Commission to establish methods to combat the practice.
Specifically, those rules would require advisory firms to develop a written program to deter bad actors from using advisors to launder money to finance illicit activities.
Further, investment advisory firms would have to file currency transaction reports when they receive more than $10,000 in cash and negotiable instruments, as do banks. They will also have to retain records on where the funds went.