In February 2024, the Financial Crimes Enforcement Network (FinCEN) proposed to designate certain investment advisers as “financial institutions” under the Banks Secrecy Act of 1970, which would subject them to anti-money laundering/countering the financing of terrorism program requirements and suspicious activity report filing obligations (AML/CFT Proposal). In anticipation of the AML/CFT Proposal being adopted, FinCEN and the SEC recently issued a joint proposal (Proposed Rule) requiring investment advisers that are deemed financial institutions to also implement customer identification programs. Comments on the Proposed Rule must be submitted by July 22, 2024. This article outlines the key features of the Proposed Rule and provides insights from industry experts about how it could impact fund managers’ overall AML compliance efforts. For coverage of the AML/CFT Proposal, see our two-part series: “Parameters of the Rules and the Types of Managers Affected” (Apr. 18, 2024); and “Difficult Provisions, Potential SEC Examinations and Likelihood of Adoption” (May 2, 2024).