Global Association of Risk Professionals quoted Beth Kramer on the Financial Crimes Enforcement Network's recently proposed anti-money laundering rule for registered investment advisers.
Beth commented on the Securities Industry and Financial Markets Association's objections to the announcement.
“In its comment letter on the AML proposal, SIFMA remarks that FinCEN has concluded that the final rules would result in expenditures by the private sector of less than $100 million, which suggests that implementation and compliance would cost approximately $8,900 per investment adviser. This, according to SIFMA, would 'significantly underestimate' the expenditures that will be required," Beth Kramer said. "In addition to incurring the overall expense of implementing a new AML program, smaller investment advisers may need to outsource the independent testing requirement, and such compliance costs could comprise a substantial portion of a small firm's compliance budget and divert resources away from other risk areas."