Compliance Digest—January 2024
Learn about all the latest compliance updates from the past month.
Every month, Sumsub’s compliance team prepares a single digest with all the latest news and updates in the world of AML and beyond. We cover everything from gambling to fintech.
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Gambling
Brazil 🇧🇷
A new regulatory framework for gambling in Brazil
What happened?
Brazil is approving the Gambling Bill , which prescribes several new requirements applicable to Brazil-based Gambling Service Providers. The bill includes updated licensing requirements for operators, including user verification requirements.
Who’s affected? Gambling Service Providers operating in Brazil
Deadline: Not specified
Read more:
Projeto de Lei n° 3626, de 2023
Curaçao 🇨🇼
Curaçao is changing the gambling regulatory framework
What happened?
The National Ordinance for Games of Chance (LOK) has been formally presented to Parliament, and the Minister of Finance has begun a series of procedures to ensure a smooth transition from the current framework. On December 20, 2023, the Ministry of Finance of Curaçao issued a notification regarding the updates to the licensing regime.
Once the LOK is in force, there will be no new extensions or renewals of Master Licences. Master Licensors will only be able to continue to operate and permit sublicensees until current renewals expire.
In the near future, licenses will be issued by the Gaming Curacao Board (GCB).
Deadline: Not specified
What else happened?
The Gaming Curaçao Board (GCB) issued a Digital Seal Policy providing a requirement for gambling operators to display a special Digital Seal on the landing page indicating their status with the GCB.
Deadline: January 1, 2024
China 🇨🇳
Measures for the Management of Online Games: Draft
What happened?
On December 22, 2023, the “Measures for the Management of Online Games” was open to the public for comments. The measures are issued in order to ensure and promote the “prosperity and healthy development” of the online game industry. In addition to technical equipment requirements and restrictions, the provisions focus on the protection of minors and vulnerable players.
Who’s affected? Online game providers in China
Deadline: Consultation has been closed since January 22, 2024
Read more:
AML
Canada 🇨🇦
Scheduled changes to reporting
What happened?
In January 2024, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) issued a schedule of reporting forms implementation. In addition, API testing for Casino Disbursement Report (CDR) submission is available starting from January 24.
Who’s affected? FINTRAC reporting entities
Deadline: Not specified
Read more:
Draft documents to help you prepare for changes to FINTRAC’s reporting forms
Schedule of changes to FINTRAC’s reporting forms
EU 🇪🇺
EU Council and Parliament ‘strike deal’ on stricter rules for AML
What happened?
On January 18, the EU Council announced a provisional agreement with the EU Parliament on parts of the anti-money laundering (AML) package that impacts cryptocurrencies. The public announcement also provides information on updates for enhanced due diligence measures for cross-border relationships and high risk third countries.
Who’s affected: EU AML-obliged entities
Deadline: Unclear. “The texts will now be finalised and presented to member states’ representatives in the Committee of permanent representatives and the European Parliament for approval.”
Read more:
Anti-money laundering: Council and Parliament strike deal on stricter rules
Advanced Transaction Monitoring Masterclass by Sumsub
What happened?
Sumsub answers this question with an exclusive course led by industry experts, so you can equip yourself with the advanced tactics required to achieve AML and anti-fraud excellence. The course begins on Feb 20, 2024. RSVP your seat today.
Read more and register:
Begin your TM learning journey or do a refresher with experts
Crypto
EU 🇪🇺
EBA issues guidance to crypto-asset service providers
What happened?
On January 16, The European Banking Authority (EBA) extended its guidelines on money laundering (ML) and terrorist financing (TF) risk factors for crypto-asset service providers (CASPs).
The primary objective of the guidelines is to assist CASPs in recognizing the risks associated with ML/TF. These risk factors help determine the level of ML/TF risk that CASPs may face due to their customers, products, delivery channels, and geographical locations. By considering these risk factors, CASPs can gain insights into their customer base and identify the parts of their business or operations that are highly susceptible to ML/TF. Additionally, the guidelines provide instructions on how CASPs should adapt their risk-reduction measures, such as utilizing tools for blockchain analytics.
In addition, the EBA initiated two public consultations on the Travel Rule Guidelines and on two sets of guidelines pertaining to internal policies, procedures, and controls for CASPs and payment service providers.
Who’s affected: Crypto service providers (CASPs)
Deadline:
“The deadline for competent authorities to report whether they comply with the Guidelines will be two months after the publication of the translations into the official EU languages. The amending Guidelines will apply from 30 December 2024.”
The deadline for responding to the consultation on ‘The Travel Rule Guidelines’ is 26 February 2023,
The deadline for responding to the consultation on ‘Guidelines on internal policies, procedures and controls’ is 25 March 2024 .
Read more:
Guidelines on internal policies, procedures, and controls
USA 🇺🇸
FINRA publishes Crypto Asset Communications Sweep Update
What happened?
FINRA has identified potential violations of Rule 2210 (Communications with the Public) in 70% of crypto asset communications it reviewed, according to a report published on the results of a targeted exam. In particular, FINRA examined deceptive or misleading statements such as instances where communications falsely suggested that crypto assets were being offered through a broker-dealer. Additionally, FINRA investigated whether the communications misrepresented the extent to which federal securities laws applied, or if investment features were exaggerated or misrepresented.
Deadline: Not specified
Who’s affected: Crypto asset providers operating in the USA
Read more:
FINRA Provides Update on Targeted Exam: Crypto Asset Communications
United Arab Emirates (Abu Dhabi) 🇦🇪
Abu Dhabi financial services regulator updates AML rules for virtual asset providers
What happened?
On December 21, the Financial Services Regulatory Authority (“FSRA”) of the Abu Dhabi Global Market changed the provisions of the AML Rulebook relating to wire transfers and clarified how the FATF Travel Rule applies to virtual assets.
Who’s affected? Firms who are subject to the provisions in the FSRA AML Rulebook
Deadline: In force
Read more:
ADGM FSRA announces revisions to its Anti-Money Laundering and Sanctions Rules and Guidance
FSRA Rules (Anti-Money Laundering and Sanctions Rules and Guidance)
