Monthly Regulatory Summary (August 2025)
As the regulatory landscape is constantly evolving, CRC 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.
Per Election Notice 08/15/25, FINRA rules require members to provide associated persons with specified information relating to the uniform registration forms and predispute arbitration. FINRA has observed that members currently satisfy some of these requirements through manual processes, such as delivery of the information via U.S. mail. As part of the FINRA Forward initiatives, FINRA has made enhancements to its systems to give members the option of satisfying these requirements electronically via FINRA’s Financial Professional Gateway (FinPro GatewayTM) beginning November 3, 2025.1
Questions concerning this Notice should be directed to:
This Notice is part of the FINRA Forward initiatives, which are intended to, among other things, modernize FINRA’s rules, guidance and processes and empower member compliance.2 In Regulatory Notice 25-07 (April 14, 2025) (RN 25-07), FINRA requested comment on modernizing its rules, guidance and processes for the organization and operation of member workplaces, including specifically requesting comment regarding ways to employ FINRA’s systems to address practical issues members experience when delivering to associated persons documents required under FINRA rules (such as the requirement to provide a copy of the Form U5 (Uniform Termination Notice for Securities Industry Registration) to associated persons whose registrations with the member have been terminated) and to create efficiencies for its members or provide improved functionality.
As discussed in RN 25-07, FINRA previously leveraged FinPro Gateway to streamline the work associated with the onboarding of applicants for registration by allowing applicants to collaborate with members to complete a draft Form U4 (Uniform Application for Securities Industry Registration or Transfer) and to electronically sign it.3
In the spirit of continuous improvement, FINRA has now developed additional enhancements to its systems to enable members to provide Form U4, Form U5 and predispute arbitration information to associated persons via FinPro Gateway. This will give members the option of satisfying their regulatory obligations through FINRA systems in a more timely and efficient manner. In addition, members that currently use manual processes to provide this information to associated persons may realize cost savings by using FinPro Gateway instead. As discussed in greater detail below, using FinPro Gateway for these purposes is optional and members and associated persons that use FinPro Gateway for these purposes would need to satisfy certain conditions, including an acknowledgement by associated persons that they may receive the required information via FinPro Gateway.
FINRA is also reviewing the comments received in response to RN 25-07 and is evaluating additional ways that it can leverage its systems to support member compliance.
Members’ Obligations to Provide Form U4, Form U5 and Predispute Arbitration Information to Associated Persons
The following FINRA rules require members to provide associated persons with information relating to the uniform registration forms and predispute arbitration. FINRA has observed that members currently use manual processes (such as using a third-party service that offers delivery confirmation) to satisfy some of these obligations.
FINRA Rule 1010(c)
Rule 1010(c) (Form U4 Filing Requirements) addresses the filing and signature requirements for initial, transfer and amended Form U4s. For any amendments to the disclosure information on an associated person’s Form U4 (e.g., regulatory actions), Rule 1010(c)(1) requires a member to file with FINRA an amended Form U4 that is based on a signed copy of the form provided to the member by the associated person prior to the filing.4 Alternatively, pursuant to Rule 1010(c)(2), the member may file the amended Form U4 after it uses reasonable efforts to provide the associated person with a copy of the amended disclosure information and, prior to the filing, obtains a written acknowledgment (which may be electronic) from the associated person that the associated person has received and reviewed the amended disclosure information. If the member cannot obtain either the signature or written acknowledgment of the associated person prior to the filing, Rule 1010(c)(3) allows the member to proceed with filing the amended disclosure information as to which it has knowledge and use reasonable efforts to provide the associated person with a copy of the amended disclosure information that was filed with FINRA.5
For any amendments to the administrative information on an associated person’s Form U4 (e.g., work and residential location), Rule 1010(c)(4) allows a member to file such amendments without obtaining the signature or written acknowledgment of the associated person. However, the rule requires the member to use reasonable efforts to provide the associated person with a copy of the amended administrative information that was filed with FINRA.
Article V, Section 3 of the FINRA By-Laws
Article V, Section 3 of the FINRA By-Laws (Notification by Member to the Corporation and Associated Person of Termination; Amendments to Notification) requires a member to submit to FINRA an initial Form U5 within 30 calendar days of terminating an associated person’s registration and an amended Form U5 within 30 calendar days after the member learns of facts or circumstances giving rise to an amendment to such individual’s Form U5. This provision also requires the member to provide a copy of the initial and, if any, amended Form U5 to the individual whose registration was terminated.
FINRA Rule 2263
FINRA Rule 2263 (Arbitration Disclosure to Associated Persons Signing or Acknowledging Form U4) requires a member to provide each associated person with certain written disclosures regarding the nature and process of arbitration proceedings whenever the firm asks an associated person, pursuant to Rule 1010(c), to sign a Form U4 or to acknowledge in writing information filed on the form.
Use of FinPro Gateway to Satisfy Delivery Obligations
As part of FINRA’s efforts to further leverage FINRA systems to support member compliance, FINRA has developed technological enhancements to its systems to allow members to provide the Form U4, Form U5 and predispute arbitration information discussed above to associated persons in a more efficient and timely manner via FinPro Gateway. These enhancements will also benefit associated persons by affording them a secure, central location to access this information in a timely manner. These enhancements will be implemented starting on November 3, 2025.6 However, the use of FinPro Gateway for these purposes will be optional for both members and associated persons.
In addition, FINRA will not assess any charges to those members that rely on FinPro Gateway to provide the required information to associated persons. Therefore, members that use FinPro Gateway to satisfy these obligations may experience cost savings compared to using other methods, such as delivery via a third-party service.
For members to rely on FinPro Gateway to provide Form U4, Form U5 and predispute arbitration information to associated persons, members and associated persons must meet the following conditions:
Further, once a member provides the required information to an associated person via FinPro Gateway, FINRA will notify the associated person through his or her FinPro Gateway personal email address (and his or her FinPro Gateway business email address, if provided by the associated person) that the information is available for viewing. For monitoring purposes, members will also have the option of requesting that FINRA send a copy of these emails to an email address provided by the member, such as to the member’s compliance department.
FINRA believes that enabling members to satisfy their obligations to provide Form U4, Form U5 and predispute arbitration information to associated persons via FinPro Gateway will allow members to meet these obligations in a more cost efficient and timely manner. This will also benefit associated persons by allowing them to receive the information in a timely manner and in a centralized and secure location. As discussed above, the use of FinPro Gateway for these purposes will be optional and available at no additional cost.
In addition, as noted above, as part of the FINRA Forward initiatives, FINRA requested comment in RN 25-07 on how to further leverage its systems to support member compliance with regulatory requirements and reduce unnecessary burdens. FINRA is currently reviewing the comments received in response to that Notice and will continue to explore ways that it can leverage its systems, including additional enhancements to FinPro Gateway, to support member compliance.
Per Election Notice 08/14/25, FINRA is providing information in this Notice to remind registered persons and firms of the continuing education (CE) requirements, including:
Questions concerning this Notice should be directed to:
Effective January 1, 2023, FINRA adopted amendments to the CE rules in support of the Securities Industry Regulatory Council on Continuing Education’s (CE Council) recommendations. Among these changes, registered persons are required to satisfy both the Regulatory Element and Firm Element annually.
Also, based on a recommendation from the CE Council, FINRA launched a centralized catalog of CE content, Financial Learning ExperienceTM (FLEXTM), on July 1, 2024, that serves as an optional resource for firms to select relevant Firm Element e-Learning courses for use in their written learning plans for their registered persons.
FINRA Rule 1240 (Continuing Education) requires all registered persons to complete the Regulatory Element annually by year end for each registration they hold.1 The 2025 Regulatory Element courses have been assigned and must be completed by December 31, 2025. Dropping or adding a registration may result in a change to the assigned courses included in a learning plan.
Registered persons who fail to complete their Regulatory Element by the annual December 31 deadline will be automatically designated as CE inactive by FINRA.2
Firms may request that FINRA extend the time by which a registered person must complete the Regulatory Element for good cause shown.3
To complete their Regulatory Element, registered persons must access assigned courses on the CE platform through their Financial Professional Gateway (FinPro) account. FinPro users should verify that their information—including email addresses and phone numbers—is current, accurate and complete in the system. Keeping information up to date will help ensure that they receive all appropriate notifications. Existing FinPro users who have forgotten their FinPro user ID or password can recover their information on the FinPro account recovery page. Support for FinPro and the CE platform is available Monday through Friday from 8 a.m. to 8 p.m. ET. FINRA will provide a notice on the Systems Status page when these systems are unavailable.
The course topics for the 2025 learning plans are published on FINRA’s View a Regulatory Element Learning Plan page. Firms can use the interactive tool on this page to view the course topics assigned to a registration category or group of registration categories for a given calendar year. The published course topics may also assist firms when preparing their Firm Element training plans. See additional information about this resource below.
In addition to the Regulatory Element requirements, firms must maintain a CE program, the Firm Element, for their registered persons to enhance their securities knowledge, skills and professionalism.4 Firms must, at least annually, evaluate and prioritize their training needs and develop a written training plan for the Firm Element. The training plan must take into consideration the firm’s size, organizational structure and scope of business activities, as well as regulatory developments and the completion of Regulatory Element by registered persons. If a firm’s analysis establishes the need for supervisory training for persons with supervisory responsibilities, such training must be included in the firm’s training plan.
FINRA Rule 1240 allows firms to consider training relating to the anti-money laundering (AML) compliance program and the annual compliance meeting toward satisfying an individual’s annual Firm Element requirement.
FINRA has developed an online, centralized content catalog, Financial Learning Experience (FLEX), which firms may optionally leverage for administering education and training for their Firm Element programs or other training needs. The platform currently includes courses FINRA developed and may include courses from third-party training providers and other self-regulatory organizations (SROs) in the future. Firms have the option of using the courses in the catalog for their Firm Element training, but are not obligated to select content from the catalog.
FINRA and the CE Council have developed reports, tools and guidance documents as resources to support firms with their CE requirements. These resources are highlighted below.
FINRA Gateway: FINRA has enabled settings and created reports within FINRA Gateway to assist firms in complying with the Regulatory Element requirements:
FinPro: Registered persons who do not currently have a FinPro account can create an account on the FinPro registration page. For guidance, they may refer to the FinPro account creation guide.
Registered persons who may have to reactivate a dormant account should allow several business days to do so. Additionally, they should allow sufficient time to complete their assigned Regulatory Element learning plan by the December 31 due date.
Annual Regulatory Element Learning Topics: By October of each year, the Regulatory Element learning topics for the coming year will be available on FINRA.org. The 2025 learning topics for each registration category have been published, and the 2026 learning plan topics will be published later this year. Firms can view a Regulatory Element learning plan assigned to a registration category or group of registration categories for a given calendar year. This information is provided in advance so that firms may consider it when preparing their Firm Element training plans.
CE Council Publications: The CE Council regularly publishes the following documents to assist firms in designing their Firm Element training plans:
Per Regulatory Notice 25-08, In their FINRA has adopted amendments to exempt business development companies (BDCs) from FINRA Rule 5130 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) and from paragraph (b) (Spinning) of FINRA Rule 5131 (New Issue Allocations and Distributions). The amendments maintain the integrity of the public offering process while facilitating vibrant capital markets by expanding access to initial public offerings (IPOs) through a highly regulated entity. The amendments will become effective on July 23, 2025.
The text of the rule change is set forth in Attachment A.
Questions concerning this Notice should be directed to:
Final Rules
There were no final rules in August.
Proposed Rules
There were no proposed rules in August.
Interim Final Rules
There were no interim final rules in August.
Interpretive Releases
There were no interpretive releases in August.
Policy Statements
There were no policy statements in August.
Concept Releases
There were no concept releases in August.
Notices to Members
There were no notices to members in August.
NFA News Releases
There were no news releases in August.
FinCEN News Releases
FinCEN Issues Advisory and Financial Trend Analysis on Chinese Money Laundering Networks
August 28, 2025
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is raising the alarm on Chinese money laundering networks (CMLNs), which pose a significant threat to the U.S. financial system. FinCEN is issuing: (1) an Advisory to urge financial institutions to be vigilant in detecting the use of CMLNs by Mexico-based drug cartels, including several designated as Foreign Terrorist Organizations; and (2) a Financial Trend Analysis (FTA) highlighting the scope and breadth of CMLN activity in the United States.
“Money laundering networks linked to individual passport holders from the People’s Republic of China enable cartels to poison Americans with fentanyl, conduct human trafficking, and wreak havoc among communities across our great nation,” said Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “The United States will not stand by and allow nefarious actors to launder illicit proceeds through our financial system. Today’s publication of FinCEN’s Advisory and Financial Trend Analysis reinforce Treasury’s and law enforcement’s ongoing work to combat Chinese money laundering networks, and will help financial institutions better identify signs of illicit activity.”
“Chinese money laundering networks are global and pervasive, and they must be dismantled,” said FinCEN Director Andrea Gacki. “These networks launder proceeds for Mexico-based drug cartels and are involved in other significant, underground money movement schemes within the United States and around the world. FinCEN’s Advisory and Financial Trend Analysis support Treasury’s continuing efforts, alongside our law enforcement and international partners, to bankrupt transnational criminal organizations and their enablers.”
Bank Secrecy Act Reports Highlight Breadth of Chinese Money Laundering Networks in the United States
CMLNs Are Being Utilized by Cartels to Launder Illicit Proceeds
CMLNs Are Involved in Other Types of Illicit Activity
CMLNs Use a Variety of Methods to Launder Proceeds, and May Recruit Employees Inside Financial Institutions
CMLNs Are Potentially Facilitating Real Estate Purchases Funded by Illicit Proceeds from a Variety of Financial Crimes
FinCEN is Issuing Key Indicators of Illicit Activity linked CMLNs to Alert Financial Institutions
FinCEN’s Advisory is available online at: https://www.fincen.gov/system/files/2025-08/FinCEN-Advisory-CMLN-508.pdf
FinCEN’s FTA is available online at: https://www.fincen.gov/system/files/2025-08/4000-10-INV-144549-S3F6L-FTA-CMLN-508.pdf
Treasury Extends Effective Dates of Orders Issued Under New Authority to Counter Fentanyl
August 19, 2025
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) extended the effective dates for orders issued on June 25, 2025, prohibiting certain transmittal of funds involving three Mexico-based financial institutions. Covered financial institutions will now have until October 20, 2025, to implement the orders prohibiting certain transmittal of funds involving CIBanco S.A., Institución de Banca Multiple (CIBanco), Intercam Banco S.A., Institución de Banca Multiple (Intercam), and Vector Casa de Bolsa, S.A. de C.V. (Vector), each of which FinCEN found to be of primary money laundering concern in connection with illicit opioid trafficking pursuant to the Fentanyl Sanctions Act and the FEND Off Fentanyl Act.
“Treasury and the Government of Mexico continue to make progress in joint efforts to safeguard our financial institutions and economies from terrorist cartels and their money laundering activities,” said FinCEN Deputy Director Jimmy Kirby. “This close partnership plays a critical role in Treasury’s comprehensive efforts to protect the U.S. financial system from criminal abuse and target the financing of transnational criminal organizations and narcotics traffickers.”
This extension reflects continued steps taken by the Government of Mexico to meaningfully address the concerns raised in FinCEN’s orders, to include maintaining temporary management of the affected institutions to promote regulatory compliance and the prevention of illicit finance. Treasury will continue to coordinate closely with the Government of Mexico on these matters and will carefully consider all facts and circumstances with respect to the implementation of the orders.
Treasury Issues Request for Comment Related to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act
August 18, 2025
The U.S. Department of the Treasury issued a Request for Comment required by the GENIUS Act, which furthers the Administration’s policy of supporting the responsible growth and use of digital assets, as outlined in Executive Order (E.O.) 14178 on “Strengthening American Leadership in Digital Financial Technology.” This request for comment offers the opportunity for interested individuals and organizations to provide feedback on innovative or novel methods, techniques, or strategies that regulated financial institutions use, or could potentially use, to detect illicit activity involving digital assets. In particular, Treasury asks commenters about application program interfaces, artificial intelligence, digital identity verification, and use of blockchain technology and monitoring. As required by the GENIUS Act, Treasury will use public comments to inform research on the effectiveness, costs, privacy and cybersecurity risks, and other considerations related to these tools.
Treasury News Release: https://home.treasury.gov/news/press-releases/sb0228
Federal Register Notice: https://www.federalregister.gov/documents/2025/08/18/2025-15697/request-for-comment-on-innovative-methods-to-detect-illicit-activity-involving-digital-assets
READOUT: FinCEN Convenes Public-Private Partnership to Promote Innovation and Address Fraud and Scam Risks in the Digital Assets Ecosystem
August 06, 2025
On July 15, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) brought together Treasury components, law enforcement agencies, financial institutions, regulatory technology companies, and trade groups to share insights on driving innovation in the digital assets ecosystem while protecting consumers from emerging fraud and scam threats. The FinCEN Exchange event, titled “Advancing Digital Assets Innovation While Safeguarding Consumers Against Fraud and Scam Risks,” featured comprehensive discussions on industry trends in innovation, developments in fraud and scam prevention, law enforcement’s active role in deterring financial crimes facilitated by the illicit use of digital assets, and compliance best practices in the digital assets ecosystem. As digital asset adoption continues to expand across the financial sector, this event highlights the critical importance of balancing technological advancement with robust compliance and consumer protection measures.
This FinCEN Exchange event represents a continuation of Treasury’s commitment to fostering dialogue between government agencies and private sector partners to combat financial crimes while supporting innovation. The event supported Executive Order 14178, which strengthens American leadership in digital financial technology. FinCEN continues to work closely with digital asset industry partners to develop effective strategies for detecting, preventing, and reporting suspicious activities. FinCEN encourages financial institutions to stay informed of evolving digital asset risks by reviewing FinCEN’s relevant guidance and advisories.
FinCEN Issues Notice on the Use of Convertible Virtual Currency Kiosks for Scam Payments and Other Illicit Activity
Immediate Release
August 04, 2025
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Notice urging financial institutions to be vigilant in identifying and reporting suspicious activity involving convertible virtual currency (CVC) kiosks. While CVC kiosks can be a simple and convenient way for consumers to access CVC, they are also exploited by illicit actors, including scammers. The risk of illicit activity is exacerbated if CVC kiosk operators fail to meet their obligations under the Bank Secrecy Act (BSA).
“Criminals are relentless in their efforts to steal money from victims, and they’ve learned to exploit innovative technologies like CVC kiosks,” said FinCEN Director Andrea Gacki. “The United States is committed to safeguarding the digital asset ecosystem for legitimate businesses and consumers, and financial institutions are a critical partner in that effort. This Notice supports Treasury’s continuing mission to counter fraud and other illicit activities.”
Illicit activity involving CVC kiosks includes fraud, certain types of cybercrime, and drug trafficking organization activity, which are three of FinCEN’s Anti-Money Laundering and Countering the Financing of Terrorism National Priorities.
Today’s Notice provides an overview of typologies associated with illicit activity involving CVC kiosks. In particular, it highlights the rise in scam payments facilitated by CVC kiosks, including tech and customer support scams and bank imposter scams. Some of these scams disproportionately impact older adults. The Notice highlights red flag indicators and reminds financial institutions of their reporting requirements under the BSA.
Questions regarding the contents of this advisory should be sent to the FinCEN Regulatory Support Section by submitting an inquiry at www.fincen.gov/contact.
The full Notice is available online at FIN-2025-NTC1.
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.
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:
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