Compliance Digest—April 2024
Learn about all the latest compliance updates from the past month.
Every month, Sumsub’s compliance team prepares a digest with all the latest updates in the world of AML and beyond. We cover multiple industries from fintech to crypto.
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AML
EU
1. The EU adopted new AML rules
What happened? EU Parliament adopted the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) package, which consists of the sixth Anti-Money Laundering (AML) directive, the EU “single rulebook” regulation, and the Anti-Money Laundering Authority (AMLA) regulation.
The updated regulations introduce stricter measures for verifying customer identities and conducting due diligence checks. These apply to AML-obligated entities such as banks, asset managers, crypto asset managers, and real or virtual estate agents, who must report any suspicious activities to Financial Intelligence Units (FIUs) and other authorities. Starting in 2029, top-tier professional football clubs engaged in significant financial transactions with investors, sponsors, advertisers, and player transfers must also verify their customers’ identities, track transactions, and report any suspicious activities to FIUs. The new AML rules also include heightened vigilance requirements for ultra-high-net-worth individuals (with total wealth exceeding a certain threshold).
Who’s affected? AML-obliged entities operating in the EU.
Deadline: No deadline is clear yet
Read more: New EU rules to combat money-laundering adopted
2. EC calls on Ireland, France, and Latvia to correctly transpose the 5AMLD
What happened? On April 24, the European Commission issued a statement of an infringement procedure in respect of Ireland, France and Latvia due to several instances of incorrect transposition (non-conformity) of the 4th and 5th AMLD into national law. The countries now have two months to respond and address the shortcomings raised by the Commission.
Who’s affected? Lawmakers in Ireland, France, and Latvia
Deadline: June 2024
Read more: European Commission calls on Ireland to correctly transpose the 5th Anti-Money Laundering Directive
Suggested read: The Three Stages of Money Laundering and How Money Laundering Impacts Business
Gambling
Brazil
1. The Brazilian Ministry of Finance published a schedule to implement fixed-odds betting regulations
What happened? The Ministry of Finance, via the Secretariat of Prizes and Bets, set forth the Regulatory Agenda for the present year by issuing Ordinance №561. According to the Agenda, the Secretariat is expected to issue frameworks for AML, online gambling, Responsible Gaming, etc. within three months.
Who’s affected: Fixed-odds betting providers operating in Brazil
Deadline: The final phase of these regulatory updates is scheduled for July, 2024
Read more: PORTARIA SPA/MF Nº 561, DE 8 DE ABRIL DE 2024
Suggested read: Brazil Gambling Regulations: All You Need to Know in 2024
2. Brazil issues rules for fixed-odds betting providers related to transactions
What happened? The Brazilian Prizes and Bets Secretariat of the Ministry of Finance established general rules to be observed in payment transactions carried out by betting operators. Pursuant to the Ordinance, intermediaries in payment transactions that do not have authorization from the Central Bank of Brazil (BCB) are not allowed to be used for payments between bettors and betting agents. Additionally, betting operators are now prohibited from accepting financial contributions in the form of cash, credit cards, checks, or crypto assets.
Who’s affected? Betting providers operating in Brazil
Deadline: In force
Read more: PORTARIA NORMATIVA SPA/MF Nº 615, DE 16 DE ABRIL DE 2024
Suggested read: A Global Guide to AML Compliance in Gambling, Gaming, and Betting (2024)
South Africa
South Africa introduces a remote gambling bill
What happened? A new bill aiming to regulate remote gambling in the country was introduced to the Parliament of South Africa. The bill aims to develop a licensing regime for remote gambling in South Africa and introduces player protection measures.
Who’s affected? Platforms providing remote gambling
Deadline: Not specified
Read more: REMOTE GAMBLING BILL (B11-2024)
Sumsub
Sumsub launches its Advanced Transaction Monitoring Masterclass, free of charge
Sumsub is excited to announce the launch of the second edition of the Advanced Transaction Monitoring Masterclass, completely free of charge!
Our Advanced Transaction Monitoring Masterclass will commence on May 15th. With over 2500 AML, compliance, and anti-fraud professionals having successfully completed this certification-based course in the previous batch, we received fantastic feedback.
This comprehensive course features an open-access format, structured course content, and a focus on practical implementation, including live demos. It will equip you with practical insights, techniques, and strategies to effectively safeguard your transactions and achieve the highest AML standards.
And the best part? The course is absolutely free!
- Featuring seven self-paced modules, you can learn at your own speed
- Delve deep into the transaction monitoring landscape, mastering everything from fundamentals to AI-powered innovations
- Gain insider intel with exclusive insights to propel your career forward
- Upon completion, receive a Certificate of Completion to showcase your expertise.
Mark your calendars for the start date: May 15, 2024.
Crypto
Singapore
MAS expands expands scope of regulated payment services related to digital assets
What happened? The Monetary Authority of Singapore (MAS) announced revisions to the Payment Services Act (PS Act) and its subsidiary legislation to broaden the range of payment services overseen by MAS and to enforce user protection and financial stability requirements on providers of digital payment tokens (DPTs). The following activities are now within the scope of regulation under the PS Act:
“(i) Provision of custodial services for DPTs;
(ii) Facilitation of the transmission of DPTs between accounts and facilitation of the exchange of DPTs, even where the service provider does not come into possession of the moneys or DPTs; and
(iii) Facilitation of cross-border money transfer between different countries, even where moneys are not accepted or received in Singapore.”
Who’s affected?
Deadline: Providers of digital payment tokens must notify MAS within 30 days and submit a licence application within six months of April 4, 2024
USA
The SEC has launched a consultation on a proposed rule change for trading options on Bitcoin exchange-traded products (ETPs)
What happened? The US Securities and Exchange Commission issued Release No. 34-100024, instituting proceedings to determine whether to approve or disapprove proposed rule changes to permit the listing and trading of options on trusts that hold bitcoin.
Who’s affected? Exchanges listing and trading options on shares that represent interests in any trust that holds spot BTC in the USA
Deadline: Comments due 21 days after the date of publication in the Federal Register (May 15, 2024)
Suggested read: A Global Guide to AML Compliance in Gambling, Gaming, and Betting (2024)
