Although SEC-registered investment advisers are not currently required by U.S. regulation to have anti-money laundering (AML) controls, having those controls is viewed as a best practice. Additionally, Cayman Islands regulators recently tightened funds’ AML obligations, and a rule proposed by the Financial Crimes Enforcement Network would require advisers to implement AML controls. A recent Hedge Fund Law Report program delved into best practices for AML compliance by private fund managers. The program was moderated by Kara Bingham, Senior Editor of the Hedge Fund Law Report, and featured Sarah Curran, director at Promontory Financial Group; Lucy Frew, partner at Walkers; and Seetha Ramachandran, partner at Proskauer. This first article in our two-part series reviews the current U.S. AML requirements and provides an update on the recently amended Cayman Islands AML regime. The second article will address common AML controls adopted by fund managers, ways the SEC reviews an adviser’s AML program, day-to-day challenges that fund managers face when implementing their AML controls and best practices when delegating AML responsibilities to a fund administrator. See “Lessons Private Fund Managers Can Learn From U.S. Bancorp’s Settlement of AML Violations” (Apr. 26, 2018); and “Do Hedge Funds Really Pose a Money Laundering Threat? A Decade of Regulatory False Starts Raises Questions” (Feb. 16, 2012).