Feb 03, 2025

5 min read

Compliance Digest—January 2025

Learn about all the latest compliance updates from the past month.

Arina Rumyanceva

Legal Counsel at Sumsub

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 AML to AI.

If you want to get the latest news every month in one place, subscribe to our newsletter.

AML

Global 🌎

FATF and FATF-Style Regional Bodies (FSRBs) published their consolidated assessment ratings

What happened? In January, FATF and FSRBs updated their consolidated assessment ratings. FATF and FSRBs conduct ongoing peer reviews to evaluate how effectively their members’ AML/CFT measures work in practice and how well they have implemented the FATF Recommendations’ technical requirements.

Who’s affected? FATF- and FSRBs-members

Deadline: N/A

Read more: Consolidated assessment ratings

US 🇺🇸

FINRA published the 2025 Regulatory Oversight Report

What happened? FINRA published the 2025 Regulatory Oversight Report, providing insights and observations from its Member Supervision, Market Regulation, and Enforcement programs. The report covers various topics, including third-party risk, cybersecurity, artificial intelligence, investment fraud, and compliance with Regulation Best Interest. It aims to help member firms strengthen their compliance programs by identifying gaps and emerging risks in the financial industry.

Who’s affected?

Member firms: Brokerage firms must review and adapt their compliance programs based on the findings and recommendations outlined in the report.
Investors: Enhanced compliance measures aim to protect investors from fraud and ensure market integrity.
Regulators: FINRA’s observations may influence future regulatory actions and policies within the securities industry.

Deadline: The report will be referenced in various FINRA-related compliance and educational resources throughout the year, including at the 2025 FINRA Annual Conference scheduled for May 13-15 in Washington, DC, US

Turkiye 🇹🇷

Turkiye published the amendments to the AML Act which includes Crypto Travel Rule

What happened? At the very end of December, Turkiye published the amendments to the AML Act. In particular, the regulations include the enforcement of the Crypto Travel Rule.

Who’s affected: AML-obliged entities

Deadline: February 25, 2025

Crypto

EU 🇪🇺

The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published a joint report analyzing recent developments in crypto-assets

What happened? The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published a joint report analyzing recent developments in crypto-assets, with a focus on decentralized finance (DeFi), crypto lending, borrowing, and staking. This report contributes to the European Commission’s assessment under Article 142 of the Markets in Crypto-Assets Regulation (MiCAR). The findings indicate that while DeFi is growing, it remains a niche market, with the total value locked in DeFi protocols accounting for only 4% of the global crypto-asset market value. The report highlights risks associated with DeFi, including money laundering and terrorist financing, as well as concerns about consumer engagement with crypto lending and borrowing services.

Who’s affected?

Consumers: Individuals engaging with crypto lending, borrowing, and staking services may face risks due to insufficient information on terms and conditions.
Crypto-Asset Service Providers (CASPs): Companies offering regulated and unregulated crypto services in the EU are directly impacted by the findings and potential regulatory changes.
Regulators: The EBA and ESMA will continue monitoring market developments, influencing future regulations.

Deadline: The EBA and ESMA should provide their contributions by February 9, 2024.

US 🇺🇸

The US president issued an executive order aimed at strengthening the country’s leadership in digital financial technology and digital assets

What happened? On January 23, 2025, the US president issued an executive order aimed at strengthening US leadership in digital financial technology and digital assets. The order emphasizes the importance of responsible growth in the digital asset sector while ensuring protections for economic liberty and privacy. It establishes a framework for the regulation of digital assets, prohibits the establishment of Central Bank Digital Currencies (CBDCs), and creates a President’s Working Group on Digital Asset Markets to propose regulatory frameworks and recommendations.

Who’s affected?

Individuals and private entities: Citizens and businesses that use digital assets and blockchain technology.
Financial institutions: Banks and financial service providers that may need to adapt to new regulations.
Government agencies: Departments such as the Treasury, Justice, and Commerce will be involved in implementing the new policies.
Investors and consumers: Those participating in the digital asset market will be impacted by regulatory changes and consumer protection measures.

Deadline:

Within 30 days, relevant agencies must identify existing regulations affecting the digital asset sector.
Within 60 days, they must submit recommendations regarding these regulations.
A report with regulatory proposals is to be submitted to the President within 180 days.

Gambling

EU 🇪🇺

Northern Ireland updated its gambling regulations

What happened? In January, Northern Ireland updated its gambling regulations to enhance player protection amid growing concerns about gambling-related harm. The new regulations include measures such as increased age verification, restrictions on advertising, and enhanced support for individuals experiencing gambling addiction. These changes aim to create a safer gambling environment and address the risks associated with online and offline gambling activities.

Who’s affected?

Gambling operators: Companies operating in the gambling sector must comply with the new regulations, which may require changes to their practices and policies.
Consumers: Gamblers in Northern Ireland will benefit from improved protections and support services aimed at reducing gambling-related harm.
Regulatory authorities: Organizations responsible for enforcing these regulations will have increased responsibilities to ensure compliance among operators.

Deadline: N/A

Suggested read: What is Responsible Gaming?

Germany’s online gambling sector is expected to face significant challenges in 2025

What happened? Germany’s online gambling sector is expected to face significant challenges in 2025, nearly four years after the Interstate Treaty on Gambling (Glücksspielstaatsvertrag) took effect on July 1, 2021. The treaty aimed to create a balanced regulatory framework but has faced implementation difficulties. Key issues include the rising number of player claims for chargebacks, which have led to increased litigation funded by third-party companies, as well as ongoing debates about the attractiveness of the regulated market compared to unregulated alternatives. The European Court of Justice (ECJ) is expected to make pivotal decisions on player claims, while regulatory evaluations of the treaty continue to spark discussions on advertising restrictions and market conditions.

Who’s affected?

Players: Individuals seeking refunds through player claims may face uncertainty pending ECJ decisions.
Gambling operators: Companies in the online gambling sector must navigate the evolving regulatory landscape and potential changes to the treaty.
Litigation funding companies: These entities are at risk due to the financial implications of pending player claims and regulatory uncertainties.
Regulators and politicians: They are involved in ongoing debates about the effectiveness and future direction of gambling regulations in Germany.

Deadline: The European Court of Justice is expected to issue decisions on player claims no earlier than late 2025, or possibly in 2026. Additionally, the evaluation of the Interstate Treaty is currently underway but has no specified completion date.

APAC 🌏

Thailand is developing the gambling industry in the country

What happened? On January 13, 2025, Thailand’s Cabinet approved a draft law to legalize casinos as part of the Integrated Entertainment Business Act, also known as the Entertainment Complex Bill. This legislation aims to allow casinos within large integrated resorts that will also feature attractions such as hotels and theme parks. The government intends for this initiative to boost tourism, combat illegal gambling, and generate additional state revenue.

Who’s affected?

Gambling operators: Companies looking to establish casinos will need to comply with new regulations and licensing requirements.
Tourists: The law aims to attract more foreign visitors, potentially enhancing their experience with new entertainment options.
Local communities: Residents may experience changes in local economies due to increased tourism and job creation but could also face challenges related to gambling addiction and crime.
Government: Regulatory bodies will need to oversee the implementation of the new law and ensure compliance among operators.

Deadline: The draft law must now be deliberated in Parliament and could pass by mid-2025, pending approval from both the Senate and House of Representatives.

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