As the regulatory landscape is constantly evolving, CRC-Oyster is issuing its monthly review and summary of various FINRA, SEC, NFA, and FinCEN publications to assist our clients in keeping abreast of notable regulatory developments and deadlines in an effort to strengthen their compliance and regulatory initiatives.
FINRA
Regulatory Notices
Per Information Notice 06/26/25, effective July 1, 2025, Prospective CAT Cost Recovery Fee 2025-1 will no longer be in effect for transactions in eligible securities executed by FINRA member CAT executing brokers, and Prospective CAT Cost Recovery Fee 2025-2 will be in effect. FINRA Rule 6897(b)(1)(D) implemented a Consolidated Audit Trail (CAT) cost recovery fee—Prospective CAT Cost Recovery Fee 2025-1—to substantially recover FINRA’s designated portion of reasonably budgeted CAT costs for the period of January 1, 2025, through December 31, 2025, towards the creation, implementation and maintenance of the CAT, and provides that this fee will remain in effect on a monthly basis until a new subsequent Prospective CAT Cost Recovery Fee is in effect.1 Rule 6897(b)(1)(D) also states that FINRA will provide notice to firms when Prospective CAT Cost Recovery Fee 2025-1 is no longer in effect.
A new Prospective CAT Cost Recovery Fee—Prospective CAT Cost Recovery Fee 2025-2—will be applied to members executing brokers’ transactions beginning July 1, 2025, and therefore FINRA is providing notice that, after June 30, 2025, Prospective CAT Cost Recovery Fee 2025-1 will not be applied to members’ transactions. The last invoice for Prospective CAT Cost Recovery Fee 2025-1 based on June 2025 transactions will be sent to member CAT executing brokers in July 2025, with payments due August 2025.
SEC
Final Rules
Per Release No. IA-6883, the Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) (collectively, “Commissions”) are further extending the compliance date for the amendments to Form PF that were adopted on February 8, 2024, from June 12, 2025, to October 1, 2025. Form PF is the confidential reporting form for certain SEC-registered investment advisers to private funds, including those that also are registered with the CFTC as a commodity pool operator (“CPO”) or commodity trading adviser (“CTA”).
The Commissions are adopting amendments to Form PF, the confidential reporting form for certain SEC-registered investment advisers to private funds, including those that also are registered with the CFTC as a CPO or CTA. The amendments correct certain errors in Form PF.
The Commissions are extending the compliance date for the amendments to Form PF that were adopted on February 8, 2024, from March 12, 2025 to June 12, 2025. Form PF is the confidential reporting form for certain SEC-registered investment advisers to private funds, including those that also are registered with the CFTC as a CPO or CTA.
The Commissions are adopting amendments to Form PF, the confidential reporting form for certain SEC-registered investment advisers to private funds, including those that also are registered with the CFTC as a CPO or CTA. The amendments are designed to enhance the Financial Stability Oversight Council’s (“FSOC’s”) ability to monitor systemic risk as well as bolster the SEC’s regulatory oversight of private fund advisers and investor protection efforts. In connection with the amendments to Form PF, the SEC is amending a rule under the Advisers Act to revise instructions for requesting a temporary hardship exemption.
Per Release No. IA-6885, the SEC is formally withdrawing certain notices of proposed rulemaking issued between March 2022 and November 2023. The Commission does not intend to issue final rules with respect to these proposals. If the Commission decides to pursue future regulatory action in any of these areas, it will issue a new proposed rule. The Commission is withdrawing the proposed rules published at 87 FR 45052 (July 27, 2022), 88 FR 53960 (August 9, 2023), 88 FR 14672 (March 9, 2023), 87 FR 13524 (March 9, 2022), 87 FR 36654 (June 17, 2022), 87 FR 68816 (November 16, 2022), 88 FR 41338 (June 26, 2023), 88 FR 76282 (November 6, 2023), 88 FR 5440 (January 27, 2023), 88 FR 128 (January 3, 2023), 88 FR 23146 (April 14, 2023), 88 FR 20212 (April 5, 2023), 87 FR 15496 (Mar. 18, 2022), and 85 FR 65990 (Oct. 16, 2020) as of June 17, 2025.
Per Release No. 33-11378, the SEC is adopting amendments to Volume II of the Electronic Data Gathering, Analysis, and Retrieval system Filer Manual (“EDGAR Filer Manual” or “Filer Manual”) and related rules and forms. Certain updates reflect and identify changes to EDGAR made in connection with EDGAR Release 25.2. Additional updates reflect and identify changes to EDGAR made in connection with the Commission’s September 27, 2024 EDGAR Filer Access and Account Management rulemaking (“EDGAR Next”).
Per Release No. 34-103320, the SEC is extending the compliance date for the recently adopted amendments that require certain broker-dealers to perform daily reserve computations and make required deposits into their reserve bank accounts daily rather than weekly by six months from December 31, 2025, to June 30, 2026.
Proposed Rules
There were no proposed rules in June.
Interim Final Rules
There were no interim final rules in June.
Interpretive Releases
There were no interpretive releases in June.
Policy Statements
There were no policy statements in June.
Concept Releases
Per Release No. 33-11376, the Commission is publishing this concept release to solicit comments on the definition of a foreign private issuer (“FPI”). There have been several developments within the FPI population since the Commission last conducted a broad review of reporting FPIs and the eligibility criteria for FPI status. These developments have prompted them to consider whether the current FPI definition should be revised so that it better represents the issuers that the Commission intended to benefit from current FPI accommodations while continuing to protect investors and promote capital formation.
NFA
Notices to Members
Notice I-25-12
June 12, 2025
FCM and IB Members—Alert regarding onboarding new customers
NFA has recently become aware of several incidents where persons have opened trading accounts using falsified customer identification documents and/or made false representations regarding entities and individuals that do not exist. Once those accounts have been established, customers have engaged in trading activity that resulted in large swings in profit or loss with immediate requests to withdraw funds and/or failures to meet margin calls.
NFA is issuing this Notice to ensure that all FCM and IB Members are aware of this activity and encourage them to consider it when onboarding new accounts.
For more information, please see the May 22, 2025, ICE Futures U.S. Advisory.
Notice I-25-13
June 25, 2025
FCM Members—Effective date for amendments to NFA Financial Requirements Sections 1 and 4 to incorporate CFTC Regulation 1.44
The CFTC adopted Regulation 1.44 to address margin adequacy and to account for the treatment of separate customer accounts by a futures commission merchant (FCM). In part, Regulation 1.44 requires an FCM applying separate account treatment to notify its designated self-regulatory organization (DSRO) and the CFTC.
As a result, NFA amended NFA Financial Requirements Section 1 and Section 4 to require FCM Members for which NFA is the DSRO to file notifications required under CFTC Regulation 1.44 with NFA using the WinJammer filing system. These amendments become effective on July 21, 2025.
NFA’s March 27, 2025, rule submission letter to the CFTC contains more detailed information regarding the amendments, which were unanimously approved by NFA’s Board.
Notice I-25-14
June 26, 2025
FCM and IB Members—FinCEN updates its list of FATF-identified jurisdictions with AML/CFT/CPF deficiencies
On June 23, 2025, the Financial Crimes Enforcement Network (FinCEN) issued a news release announcing that the Financial Action Task Force (FATF) updated its list of jurisdictions with strategic AML/CFT/CPF deficiencies. NFA Member futures commission merchants (FCM) and introducing brokers (IB) should review this release to ensure that their AML programs have the most current information on FATF-identified jurisdictions with AML/CFT/CPF deficiencies and revise their AML programs accordingly. A copy of the news release is available on FinCEN’s website.
NFA News Releases
There were no news releases in June.
FinCEN
FinCEN News Releases
June 06, 2025
Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is issuing an Advisory to assist financial institutions in identifying, preventing, and reporting suspicious activity connected to Iranian illicit financial activity, including oil smuggling, “shadow banking,” and weapons procurement. The Advisory replaces FinCEN’s 2018 Iran Advisory, which FinCEN is rescinding today.
The Advisory supports the implementation of the U.S. maximum pressure campaign against Iran outlined in National Security Presidential Memorandum (NSPM-2) and provides updated red flags and information on current trends and typologies for Iranian sanctions evasion and other illicit activity.
Concurrently, Treasury’s Office of Foreign Assets Control is designating over 30 individuals and entities tied to Iranian brothers Mansour, Nasser, and Fazlolah Zarringhalam, who have collectively laundered billions of dollars through the international financial system via Iranian exchange houses and foreign front companies under their control as part of Iran’s “shadow banking” network.
Treasury News Release: https://home.treasury.gov/news/press-releases/sb0159
FinCEN Issues Fiscal Year in Review
June 18, 2025
WASHINGTON—Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) held the 62nd semi-annual plenary meeting of the Bank Secrecy Act Advisory Group (BSAAG). Deputy Secretary of the Treasury Michael Faulkender delivered remarks at the event laying out guiding principles for BSA modernization.
At the plenary, FinCEN also announced the release of its Year in Review for Fiscal Year 2024 , which provides information and statistics on the usefulness of BSA reporting. Financial intelligence generated by BSA requirements is a critical source of information used in investigations and prosecutions of money laundering, terrorist financing, and other illicit finance activity. The Year in Review provides transparency into the collection and use of BSA data, including FinCEN’s efforts to support law enforcement and national security agencies. It also includes information on how FinCEN analyzes BSA data to fulfill its mission, including to support advisories, trend analyses, and other actions to disrupt illicit financial activity. The publication of the Year in Review furthers FinCEN’s commitment to share information and statistics on the usefulness of BSA reporting, consistent with Section 6201 of the Anti-Money Laundering Act of 2020.
The BSAAG is a public-private partnership that convenes industry, regulators, and law enforcement for discussions regarding the administration of the Bank Secrecy Act (BSA), including how recordkeeping and reporting requirements can be improved to enhance utility to law enforcement and national security while reducing unnecessary regulatory burden on financial institutions.
View an excerpt of the remarks by Deputy Secretary of the Treasury Michael Faulkender at the BSAAG Plenary.
FinCEN Holds 62nd Bank Secrecy Act Advisory Group (BSAAG) Plenary
June 14, 2025
WASHINGTON—Today, the Financial Crimes Enforcement Network (FinCEN) announced the renewal of its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in non-financed purchases of residential real estate.
The terms of the GTOs are effective beginning June 15, 2025, and ending on October 9, 2025. The GTOs continue to provide valuable data on the purchase of residential real estate by persons possibly involved in various illicit enterprises. Renewing the GTOs will further assist in tracking illicit funds and other criminal or illicit activity.
FinCEN renewed the GTOs that cover certain counties and major U.S. metropolitan areas in California, Colorado, Connecticut, Florida, Hawaii, Illinois, Maryland, Massachusetts, Nevada, New York, Texas, Washington, Virginia, and the District of Columbia. No changes have been made to jurisdictional coverage since the last issuance of these GTOs. The purchase price threshold likewise remains $300,000 for each covered metropolitan area, with the exception of the City and County of Baltimore, where the purchase price threshold is $50,000.
Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Countering the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies
June 23, 2025
WASHINGTON—At the conclusion of its plenary meeting this month, the Financial Action Task Force (FATF), an intergovernmental body that establishes international standards for anti-money laundering, countering the financing of terrorism, and countering the financing of proliferation of weapons of mass destruction (AML/CFT/CPF), updated its lists of jurisdictions with strategic AML/CFT/CPF deficiencies.
FinCEN is advising U.S. financial institutions to consider the FATF’s stance toward these jurisdictions when reviewing their obligations and risk-based policies, procedures, and practices.
- On June 13, 2025, the FATF added the British Virgin Islands and Bolivia to its list of Jurisdictions Under Increased Monitoring and removed Croatia, Mali, and Tanzania.
- The FATF’s list of High-Risk Jurisdictions Subject to a Call for Action remains the same, with Iran, the Democratic People’s Republic of Korea (DPRK), and Burma subject to calls for action. Specifically, the FATF continues to call on jurisdictions to apply countermeasures on Iran and the DPRK. Burma remains subject to the application of enhanced due diligence, but not countermeasures.
The FATF issued the following statements as part of its listing and monitoring process to ensure compliance with its international standards:
- Jurisdictions Under Increased Monitoring, which publicly identifies jurisdictions with strategic deficiencies in their AML/CFT/CPF regimes that have committed to, or are actively working with, the FATF to address those deficiencies in accordance with an agreed upon timeline; and
- High-Risk Jurisdictions Subject to a Call for Action, which publicly identifies jurisdictions with significant strategic deficiencies in their AML/CFT/CPF regimes and calls on all FATF members to apply enhanced due diligence and, in the most serious cases, apply countermeasures to protect the international financial system from those risks.
Jurisdictions Under Increased Monitoring
With respect to the FATF-identified Jurisdictions Under Increased Monitoring, covered financial institutions are reminded of their obligations to comply with the due diligence obligations for foreign financial institutions (FFIs) under 31 CFR § 1010.610(a) in addition to their general obligations under 31 U.S.C. § 5318(h) and its implementing regulations. As required under 31 CFR § 1010.610(a), covered financial institutions should ensure that their due diligence programs, which address correspondent accounts maintained for FFIs, include appropriate, specific, risk-based, and, where necessary, enhanced policies, procedures, and controls that are reasonably designed to enable the covered financial institution to detect and report, on an ongoing basis, any known or suspected money laundering activity conducted through or involving any correspondent account established, maintained, administered, or managed in the United States for an FFI.
Furthermore, money services businesses (MSBs) have parallel requirements with respect to foreign agents or foreign counterparties, as described in FinCEN Interpretive Release 2004-1, which clarifies that the AML program regulation requires MSBs to establish adequate and appropriate policies, procedures, and controls commensurate with the risk of money laundering and the financing of terrorism posed by their relationship with foreign agents or foreign counterparties. Such reasonable steps should not, however, put into question a financial institution’s ability to maintain or otherwise continue appropriate relationships with customers or other financial institutions, and should not be used as the basis to engage in wholesale or indiscriminate de-risking of any class of customers or financial institutions. Financial institutions should also refer to previous interagency guidance on providing services to foreign embassies, consulates, and missions. Additional information on these parallel requirements, covering both domestic and foreign agents and foreign counterparts, is available in FinCEN’s Guidance on Existing AML Program Rule Compliance Obligations for MSB Principals with Respect to Agent Monitoring.
The United Nations (UN) continues to adopt several resolutions implementing economic and financial sanctions. Member States are bound by the provisions of these UN Security Council Resolutions (UNSCRs), and certain provisions of these resolutions are especially relevant to financial institutions. Financial institutions should be familiar with the requirements and prohibitions contained in relevant UNSCRs. In addition to UN sanctions, the U.S. Government maintains a number of sanctions programs. For a description of Treasury’s Office of Foreign Assets Control (OFAC) current sanctions programs, please consult OFAC’s Sanctions Programs and Country Information.
High-Risk Jurisdictions Subject to a Call for Action
Burma remains a FATF-identified high-risk jurisdiction subject to a call for action, and the FATF calls on all members and urges all jurisdictions to apply enhanced due diligence proportionate to the risks. As a general matter, FinCEN advises U.S. financial institutions to apply enhanced due diligence when maintaining correspondent accounts for foreign banks operating under a banking license issued by a country designated as noncooperative with international AML principles or procedures by an intergovernmental group or organization of which the United States is a member, and with which designation the U.S. representative to the group or organization concurs. U.S. financial institutions should continue to consult existing FinCEN and OFAC guidance on engaging in financial transactions with Burma.
The DPRK and Iran also remain in this category, and the FATF calls on all members and urges all jurisdictions to apply countermeasures. U.S. financial institutions must comply with the extensive U.S. restrictions and prohibitions against opening or maintaining any correspondent accounts, directly or indirectly, for North Korean or Iranian financial institutions. Existing U.S. sanctions and FinCEN regulations prohibit any such correspondent account relationships.
Because Iran’s behavior threatens the national interest of the United States, the President issued National Security Presidential Memorandum (NSPM)-2 on February 4, 2025, finding that it is in the national interest to impose maximum pressure on the Iranian regime to end its nuclear threat, curtail its ballistic missile program, and stop its support for terrorist groups. The Government of Iran and Iranian financial institutions remain persons whose property and interests in property are blocked under Executive Order 13599 and section 560.211 of the Iranian Transactions and Sanctions Regulations (ITSR), 31 CFR Part 560. U.S. financial institutions and other U.S. persons continue to be broadly prohibited under the ITSR from engaging in transactions or dealings with Iran, the Government of Iran, and Iranian financial institutions, including opening or maintaining correspondent accounts for Iranian financial institutions. These sanctions impose obligations on U.S. persons that go beyond the relevant FATF recommendations. In addition to OFAC-administered sanctions, on October 25, 2019, FinCEN found Iran to be a jurisdiction of primary money laundering concern and issued a final rule, pursuant to section 311 of the USA PATRIOT Act (section 311), imposing the fifth special measure available under section 311. As set out in 31 CFR § 1010.661, this rule prohibits U.S. financial institutions from opening or maintaining correspondent accounts for, or on behalf of, an Iranian financial institution, and the use of FFIs’ correspondent accounts at covered United States financial institutions to process transactions involving Iranian financial institutions.
For jurisdictions removed from the FATF listing and monitoring process, U.S. financial institutions should take the FATF’s decisions and the reasons behind the delistings into consideration when assessing risk, consistent with financial institutions’ obligations under 31 CFR § 1010.610(a) and 31 CFR § 1010.210.
If a financial institution knows, suspects, or has reason to suspect that a transaction involves funds derived from illegal activity or that a customer has otherwise engaged in activities indicative of money laundering, terrorist financing, or other violation of federal law or regulation, the financial institution must file a Suspicious Activity Report.
Treasury Issues Unprecedented Orders under Powerful New Authority to Counter Fentanyl
June 25, 2025
Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued orders identifying three Mexico-based financial institutions—CIBanco S.A., Institution de Banca Multiple (CIBanco), Intercam Banco S.A., Institución de Banca Multiple (Intercam), and Vector Casa de Bolsa, S.A. de C.V. (Vector)—as being of primary money laundering concern in connection with illicit opioid trafficking, and prohibit, respectively, certain transmittals of funds involving CIBanco, Intercam, and Vector. These orders are the first actions by FinCEN pursuant to the Fentanyl Sanctions Act and the FEND Off Fentanyl Act, which provide Treasury with additional authorities to target money laundering associated with the trafficking of fentanyl and other synthetic opioids, including by cartels. This prohibition becomes effective 21 days following publication in the Federal Register.
Treasury News release: https://home.treasury.gov/news/press-releases/sb0179
Treasury News release (Spanish): https://www.fincen.gov/news/news-releases/el-departamento-del-tesoro-emite-historicas-ordenes-bajo-una-nueva-y-poderosa
FinCEN’s CIBanco Order: https://www.federalregister.gov/d/2025-11993
FinCEN’s Intercam Order: https://www.federalregister.gov/d/2025-11990
FinCEN’s Vector Order: https://www.federalregister.gov/d/2025-11991
FAQs: https://www.fincen.gov/sites/default/files/shared/Final-FAQs.pdf
FinCEN Permits Banks to Use Alternative Collection Method for Obtaining TIN Information
June 27, 2025
WASHINGTON—To provide banks with greater flexibility in fulfilling compliance obligations, today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an order permitting banks to collect Tax Identification Number (TIN) information from a third party rather than from the bank’s customer. This order takes into account public comments received in response to an interagency request for information.
“We recognize that the way customers interact with banks and receive financial services has changed significantly since 2001, when the initial requirement was enacted into law under the USA PATRIOT Act,” said FinCEN Director Andrea Gacki. “This order reduces burden by providing banks with greater flexibility in determining how to fulfill their existing regulatory obligations without presenting a heightened risk of money laundering, terrorist financing, or other illicit finance activity.”
FinCEN issued this order in coordination with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively, “the Agencies”). The order permits a bank subject to the jurisdiction of the Agencies to use an alternative collection method to obtain TIN information from a third-party rather than from the customer, provided that the bank otherwise complies with the Customer Identification Program (CIP) Rule.
The CIP Rule requires written procedures that: (1) enable the bank to obtain TIN information prior to opening an account; (2) are based on the bank’s assessment of the relevant risks; and (3) are risk-based for the purpose of verifying the identity of each customer to the extent reasonable and practicable, enabling the bank to form a reasonable belief that it knows the true identity of each customer. The use of this exemption by banks is optional, and they are not required to use an alternative collection method for TIN information.
In March 2024, FinCEN and the Agencies issued a request for information that sought public input on the potential risks and benefits, as well as safeguards that could be established, if banks were permitted to obtain part or all of a customer’s TIN information from a third-party source prior to opening an account rather than from the customer. FinCEN and the Agencies considered comments received—as well as the significant innovation in identity verification tools available to banks and other factors—in granting this exemption from one aspect of the CIP TIN collection requirements.
Order: https://www.fincen.gov/sites/default/files/2025-06/CIP-TIN-Exemption-Order-final508.pdf
Hot Issue
Chairman Paul Atkins of the SEC has withdrawn 14 major proposed rules introduced under the prior administration, including those addressing ESG disclosures, climate risk reporting, artificial intelligence in financial advice, decentralized exchange definitions, and cybersecurity obligations. This sweeping action is widely seen as a landmark shift toward mandate-focused regulation, favoring traditional investor protection and emphasizing cost benefit analysis and public input over the expansive agenda advanced by former Chair Gary Gensler. While many industry participants have welcomed the change as a move toward regulatory clarity, others caution that the withdrawals may weaken essential safeguards. The development has become a central focus across the compliance industry, with firms reevaluating controls and revisiting assumptions built around now defunct proposals. This is not a time to be reckless or overly reactive, but rather a moment to remain observant, flexible, and focused on protecting investors through sound, principles-based programs.
Our Perspective
We believe that being informed is essential to any proactive regulatory compliance program. Awareness of shifts in the regulatory landscape allows firms to adjust thoughtfully rather than reactively, ensuring they remain aligned with both current expectations and emerging risks. At the same time, we recognize the practical challenge of balancing this commitment with the demands of day-to-day business execution, particularly during a period of heightened uncertainty and rapid change. Our goal is to help firms navigate these complexities with clarity, pragmatism, and a steady focus on investor protection and long-term program integrity.
For more information, please contact:
Mitch Avnet
p. (646) 346-2468
David Amster
p. (917) 568-6470
Sources:
- FINRA Notices
- SEC Notices
- NFA Notices
- FinCEN News Releases
