# Plain Language Summary: Congressional Disapproval of Anti-Money Laundering Rule

This bill is Congress's way of rejecting a new rule created by the Financial Crimes Enforcement Network (a Treasury Department agency) that would require investment advisers to report suspicious financial activity and implement anti-money laundering programs. If this bill passes, it would cancel that rule entirely, meaning investment advisers would no longer have to follow these new requirements.

To understand what this means in practical terms: investment advisers are professionals who manage money for clients. The rule Congress is trying to block would have forced them to watch for signs of money laundering (when criminals try to hide the origin of illegal money) and report anything suspicious to the government. The rule also required these advisers to set up programs to prevent their services from being used for terrorism financing or other financial crimes. This is similar to rules that already apply to banks and other financial institutions.

If Congress successfully kills this rule, investment advisers would have fewer obligations to monitor and report suspicious activity. This could make it easier for criminals to hide illegal money through investment accounts, since there would be less oversight in that part of the financial system. On the flip side, investment firms would face less regulatory burden and compliance costs. The practical impact depends on your perspective: if you're concerned about financial crime prevention, losing this rule is problematic; if you're an investment adviser frustrated by regulatory requirements, you might see it as relief from red tape.

This is an example of Congress using a special process called the Congressional Review Act that allows them to overturn recent government regulations with a simple majority vote, rather than having to pass new legislation.

Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Financial Crimes Enforcement Network relating to "Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers".

Clyde, Andrew S.

<p>This joint resolution nullifies the final rule issued by the Financial Crimes Enforcement Network (FinCEN) titled <em>Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers</em> and published on September 4, 2024. The rule expands existing anti-money laundering and counterterror financing requirements (e.g., reporting suspicious financial activity to FinCEN) to include certain investment advisers.</p>