Compliance Digest—February 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.
If you want to get the latest news every month in one place, subscribe to our newsletter.
Anti-Money Laundering (AML)
Barbados 🇧🇧, Gibraltar 🇬🇮, Uganda 🇺🇬 and UAE 🇦🇪
The Financial Action Task Force (FATF) Plenary
What happened?
Barbados, Gibraltar, Uganda and the UAE are no longer subject to increased monitoring, the FATF said in a statement on Friday, February 23, following its plenary meetings.
Read more:
Jurisdictions under Increased Monitoring—23 February 2024
Germany 🇩🇪
Germany is the new place for EU AMLA
What happened?
On February 22, representatives of the European Council and the European Parliament reached an agreement on the seat of a future European Anti-Money Laundering Authority (AMLA). The AMLA is the centerpiece of the EU’s reformed anti-money laundering framework, which will have direct and indirect supervisory powers over AML-obliged entities and the power to impose sanctions and measures.
Deadline: AMLA will begin operations mid 2025.
Read more:
Frankfurt to host the EU’s new Anti-Money Laundering Authority (AMLA)
US 🇺🇸
FinCEN proposes a rule to combat illicit finance and national security threats in the investment adviser sector
What happened?
On February 13, FinCEN proposed rules that would require certain investment advisers to apply Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) requirements pursuant to the Bank Secrecy Act (BSA), including implementing risk-based AML/CFT programs, reporting suspicious activity to FinCEN, and fulfilling recordkeeping requirements. In addition, the Treasury also published its risk assessment of the investment adviser sector, which identifies ML threats and vulnerabilities there.
Who’s affected?
Investment advisers operating in the US
Deadline:
Comments to the consultation are accepted until April 15, 2024.
Read more:
2024 Investment Adviser Risk Assessment
Sumsub
Sumsub launches the first-ever Advanced Transaction Monitoring Masterclass, free of charge
Our Advanced Transaction Monitoring Masterclass started on February 20, with more than 1,500 AML, compliance, and anti-fraud professionals taking up this certification-based course.
There is still an opportunity to enroll in a course because it’s self-paced, so participants can progress through the material at their own speed. The current group involved in the course will conclude on March 21, so don’t miss your chance to learn straight from industry experts!
This comprehensive course will equip you with practical insights, techniques, and strategies to effectively safeguard your transactions and achieve the highest AML standards.
And here’s the cherry on top—the course is absolutely free!
- Seven self-paced modules: Learn at your own speed
- Dive deep into the TM landscape: Master everything from fundamentals to AI-powered innovations
- Insider intel: Discover exclusive insights to drive your career forward
- Completion certificate: Showcase your expertise with a certificate of completion
Transaction Monitoring Masterclass: From Panic to Pro in One Live Session
Tired of suspicious transactions slipping through the cracks? Join us for a live AMA session on March 21, 5 p.m SGT, where industry experts will lift the veil on advanced transaction monitoring, revealing the secrets to building impenetrable defenses.
This is your chance to:
– Become a transaction monitoring wizard: Master the art of detecting suspicious activity before it’s too late
– Boost your confidence and credibility: Impress your peers with your newfound expertise
– Unlock a world of career opportunities: Upskill with the latest and greatest tech insights in this highly in-demand field
Speakers:
– Daria Dubinina, Co-CEO of Crassula
– Sheetal R. Bhardwaj, Board-member ACFCS, MENA Chapter
– Oonagh Van Den Berg, CEO at Virtual Risk Solutions (VRS)
– Bjorn Wahlstorm, CEO at Current Consulting Group
– Tony Petrov, Chief Legal Officer at Sumsub
Register here for March 21, 5 p.m. SGT
Crypto
Hong Kong 🇭🇰
Hong Kong publishes Guidance on Expected Standards on Provision of Custodial Services for Digital Assets by Authorized Institutions
What happened?
On February 20, the Hong Kong Monetary Authority (HKMA) published Guidance on Expected Standards on Provision of Custodial Services for Digital Assets by Authorized Institutions. The standards include the provisions on risk assessment, AML/CFT compliance, disclosure, record keeping, and safeguarding client assets.
Who’s affected?
Authorized Institutions conducting virtual asset-related activities as an intermediary, distributing tokenized products, or providing standalone custodial services.
Deadline:
Authorized Institutions should notify the Hong Kong Monetary Authority and confirm compliance until 20th of August 20, 2024.
Read more:
Provision of Custodial Services for Digital Assets
UK 🇬🇧
The UK Law Commission issued a consultation on the law of digital assets as personal property
What happened? The UK Law Commission is working on a bill which would recognize digital assets as property. However, digital assets don’t fall under the definition of property; Thus, the Law Commission recommends the explicit recognition, in statute, of a third category of personal property, consulting whether an approach with a ‘third category’ of property could be successfully used and what personal property rights attach to third-category things (and the consequences of that, such as tortious liability, applicable remedies etc.).
Who’s Affected?
Stakeholders
Deadline:
Responses are invited until March 22, 2024.
Read more:
Digital assets as personal property
Gambling
UK 🇬🇧
The UK Gambling Commission publishes an update on next steps for financial risk checks
What happened?
On February 22, the UK Gambling Commission (GC) issued comments regarding various elements of the government’s Gambling White Paper. The FAQ primarily concentrates on financial vulnerability checks, which aim to avoid vulnerabilities like bankruptcy orders or past unpaid debts among customers.
Who’s affected:
UK-based gambling service providers
Read more:
Financial risk next steps—February 2024
The UK government will introduce a £5 stake limit for adults aged 25 and over
What happened?
The UK Department of Culture, Media and Sport issued a press release on the amendments to the limits for online slots. The maximum £2 stake for 18 to 24-year-olds in online slot games, and a £5 limit for adults aged 25 and over, will be introduced starting from September.
This decision comes after a 10-week consultation phase, during which most participants supported the suggestion outlined in the gambling white paper to establish legal boundaries for online slot games to mitigate the dangers of gambling addiction. Nevertheless, the Gambling Commission and the government remain attentive to feedback from advocates, the general population, as well as representatives from the gambling and horse racing sectors throughout the consultation regarding these safeguards.
Who’s affected?
Online gambling providers operating in the UK
Deadline:
The limits will come into force in September of this year.
Read more:
New £2 maximum stake for under 25s playing online slots
Macau 🇲🇴
Macau Gambling Crime Bill
What happened?
The draft of the “Law to Combat Gambling Crimes” in Macau, introduced in December, is scheduled for its initial reading at the Legislative Assembly on February 28, as indicated by the most recent assembly meeting schedule. This legislation serves as an update to Macau’s current Illegal Gambling Regime, also known as Law No.8/96/M, which was established and ratified almost thirty years ago. A significant aspect of the local government’s legal proposal involves the enhancement of maximum imprisonment for illegal gambling. There are also explanations of what is referred to as “preventive detention” in connection with gambling offenses, including the illegal practice of under-the-table betting using a “multiplier.”
Who’s affected? Casinos
Read more: First AL reading for Macau gambling crime bill on Feb 28
Trading
EU 🇪🇺
MiFIR and MiFID II: the European Council adopts new rules to strengthen market data transparency
What happened?
The Council approved modifications to the EU’s trading regulations, aimed at providing investors with improved access to market data essential for investing in financial instruments. These changes are designed to enhance the global competitiveness of the EU’s capital markets and promote a fair playing field. Specifically, the revisions focus on the Markets in Financial Instruments Regulation (MiFIR) and the Markets in Financial Instruments Directive (MiFID), which oversee investment services and financial market activities within the EU. The goal of these new regulations is to empower investors by ensuring that consolidated market data is readily accessible at the EU level.
Who’s affected? EU-based providers subject to MiFIR/MiFID II regulations
Deadline: In force 20 days after publication
Read more:
MiFIR and MiFID II: Council adopts new rules to strengthen market data transparency
