NVCA Statement on FinCEN’s Two-Year AML Pause 

WASHINGTON, DC – National Venture Capital Association (NVCA) President and CEO Bobby Franklin issued the following statement in response to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announcing a two-year delay of the final rule requiring Anti-Money Laundering (AML) programs and Suspicious Activity Report (SAR) filings for registered investment advisers and exempt reporting advisers:  

“The venture industry welcomes FinCEN’s decision to delay this duplicative and unnecessary rule. The proposed framework misunderstood the role of venture capital investments in startups, overlooked the illiquid and long-term nature of the venture industry, and posed a risk to the flow of capital to early-stage startups that drive American innovation. NVCA will continue to engage with FinCEN on this critical issue as FinCEN revisits the substance of the rulemaking during this two-year pause to ensure future rulemaking supports innovation and entrepreneurship.”  

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The National Venture Capital Association (NVCA) empowers the next generation of American companies that will fuel the economy of tomorrow. As the voice of the U.S. venture capital and startup community, NVCA advocates for public policy that supports the American entrepreneurial ecosystem. Serving the venture community as the preeminent trade association, NVCA arms the venture community for success, serving as the leading resource for venture capital data, practical education, peer-led initiatives, and networking. For more information about NVCA, please visit www.nvca.org.