Insights

Historically, SEC-registered investment advisers have not been subject to comprehensive AML regulation under the Bank Secrecy Act (“BSA”) unless they also qualify as a broker-dealer or other BSA-regulated financial institution. Notwithstanding the absence of a formal requirement to date, many SEC-registered investment advisers have voluntarily adopted AML programs in line with industry expectations and investor demands. However, on August 28, 2024, FinCEN issued its Final Rule, establishing anti-money laundering/countering the financing of terrorism (“AML/CFT”) requirements for Covered Advisers similar to those that apply to broker-dealers. The Final Rule, which was scheduled to take effect on January 1, 2026, required Covered Advisers to maintain written AML programs, perform customer due diligence, file Suspicious Activity Reports (“SARs”) and other reports required of BSA-regulated financial institutions, and retain standard AML records.  

On June 30, 2025, President Trump issued Executive Order 14312 effectively lifting (or beginning the process of lifting) most of the sanctions on Syria. Executive Order 14312 cites the leadership changes and the policies of the new Syrian government under President Ahmed al-Sharaa as the reasons for the removal of sanctions. On the same day, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of State took steps to implement the termination of the program by, among other actions, delisting appropriate individuals and entities from the List of Specially Designated Nationals and Blocked Persons (SDN List). These actions followed the initial sanctions relief provided on May 23, 2025 by OFAC, the Financial Crimes Enforcement Network (FinCEN), and the State Department.

 

Erik is returning to Crowell after serving as the Deputy Assistant Secretary for the Division for Counter Threat Finance and Sanctions, Bureau of Economic and Business Affairs, U.S. Department of State. This episode discusses Erik's experience at Department of State and how that informs his practice at Crowell, and his thoughts on possible developments under the new Administration. Global Trade Talks is a podcast that shares brief perspectives on key global issues on international trade, current events, business, law, and public policy as they impact our lives.