Tag Archives: Claudette Druehl

FinCEN and SEC Move Closer to New AML Requirements for Investment Advisers & ERAs

by Joel M. Cohen, Claudette Druehl, Marietou Diouf, Tami Stark, Prat Vallabhaneni, and Robert DeNault

Photos of the authors

Top: Joel M. Cohen, Claudette Druehl, and Marietou Diouf
Bottom: Tami Stark, Prat Vallabhaneni, and Robert DeNault
(Photos courtesy of White & Case LLP)

On May 13, 2024, FinCEN and the SEC jointly proposed a new rule that would require SEC-registered investment advisers and exempt reporting advisers to maintain written customer identification programs (CIPs).  The new rule supplements a proposal in February to impose requirements on investment advisers similar to those that have existed for broker-dealers since 2001, as a means to address illicit finance and national security threats in the asset management industry.

For investment advisers who do not currently have an AML/CFT program, this compliance obligation will create a large shift in the way they operate.  This will require significant legal time and attention, but it will be time well spent considering potential regulatory exposure and likely indemnification obligations which flow through commercial agreements in favor of counterparties.

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SEC’s Focus on Off-Channel Communications Continues

by Tami Stark, Claudette Druehl, and Robert DeNault

From left to right: Tami Stark, Claudette Druehl, and Robert DeNault. (Photos courtesy of White & Case LLP)

On September 29, the U.S. Securities and Exchange Commission (“SEC”) brought its latest wave of enforcement actions related to “off-channel communications,” charging 10 additional firms with failing to maintain employee communications on personal devices that related to the firms’ business.  Over the past few years, the SEC has charged over 40 registrants in a sweep of off-channel communications actions and has levied over $1.5 billion in penalties.[1]

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