Under the recent proposal by the Financial Crimes Enforcement Network (FinCEN), investment advisers that are registered or required to be registered with the SEC would have to meet the suspicious activity reporting and anti-money laundering (AML) requirements of the Bank Secrecy Act. To do so, hedge fund managers and other investment advisers would be required to report suspicious activity and retain records relating to certain fund transfers. During Pepper Hamilton’s seminar, “Investment Management and Hedge Funds: What’s Happening Now?,” partners Gregory Nowak and Timothy McTaggart, as well as Walter Donaldson, managing director of Freeh Group International Solutions, LLC, discussed the proposed rule, including its mandates and anticipated impact on the hedge fund industry. This article, the second in a two-part series, examines those specific reporting, information sharing and recordkeeping requirements, as well as the adoption and implementation of the rule. The first article summarized the panelists’ discussion of the proposed rule and the elements of an AML program that it would require. For more from Nowak, see “Conflicts and Opportunities Offered by Concurrent Management of Employee-Owned Hedge Funds and Outside-Investor Hedge Funds,” Hedge Fund Law Report, Vol. 2, No. 32 (Aug. 12, 2009).