Compliance Digest—May 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
Australia 🇦🇺
Australia is modernizing its AML regime; 2nd round of consultation until June 13
What happened? In May, the Australian Government published a consultation paper on Reforming Australia’s anti-money laundering and counter-terrorism financing regime. In summary, the proposed reforms aim to expand the current AML/CTF legislation to high-risk services, such as those provided by lawyers, accountants, trust and company service providers, real estate agents, and dealers in precious metals and stones. The reforms also seek to simplify and update the regime in accordance with international standards.
Who’s affected: Market stakeholders
Deadline: Submission is allowed until June 13
Read more: Reforming Australia’s anti-money laundering and counter-terrorism financing regime
New Zealand 🇳🇿
Updated AML/CFT regulations in New Zealand
What happened? The Department of Internal Affairs, the Financial Markets Authority, and the Reserve Bank of New Zealand, collectively referred to as the Supervisors, are announcing their support for the upcoming changes to AML/CFT requirements as outlined in the Amendment Regulations scheduled to take effect on June 1 2024. These adjustments are aimed at aligning New Zealand with international AML/CFT standards. The Amendment Regulations will bring in new directives regarding the transportation of cash across borders, definitions, exemptions, compliance requirements, and prescribed transaction reporting.
Who’s affected? AML-obliged entities in New Zealand
Deadline: In force on June 1
Read more: New AML/CFT regulations – joint statement by AML/CFT Supervisors on supervisory approach
Suggested read: Anti-Money Laundering (AML) Policy: Step-by-Step Guide (with Template)
Gambling
Brazil 🇧🇷
Brazil issues the next Ordinance for gambling operators
What happened? The Secretary of Prizes and Bets of the Ministry of Finance issued Ordinance 722 of May 2 (the Ordinance) establishing the technical and security requirements of betting systems, as well as sports betting and online gaming platforms, to be used by fixed-odd betting lottery operating agents. In particular, the Ordinance includes provisions on player account registration, access to betting systems, and data maintenance.
Who’s affected: Gambling service providers operating in Brazil
Deadline: In force
Read more: Finance defines technical and security requirements: operators must use the “bet.br” domain
Sweden 🇸🇪
The Swedish Gambling Authority approved a proposal for a ban on gambling credit
What happened? On May 21, the Spelinspektionen (Swedish Gambling Authority) published a memorandum on prohibition of license holders and gambling agents from allowing or participating in payment of games using credits. The Swedish Gaming Authority further proposed that the the ban should cover all licensed forms of gambling; however, the Swedish Gaming Authority must be able to grant exceptions.
Who’s affected? Gambling service providers operating in Sweden
Deadline: –
Read more: Promemoria Ett nytt förbud mot spel på kredit (dnrFi2024/00442)
Crypto
South Africa 🇿🇦
South Africa consults on Travel Rule implementation
What happened? At the end of April, the Financial Intelligence Unit of South Africa published a consultation paper concerning the implementation of the Travel Rule relating to crypto asset transfers in accordance with Financial Action Task Force Recommendations. The proposed Directive 9 directive pertains to institutions that facilitate crypto asset transfers either domestically or across borders.
Suggested read: What is the FATF Travel Rule? The Ultimate Guide to Compliance (2024)
Who’s affected? Stakeholders of crypto asset transfers
Deadline: Comments must reach the FIC by no later than close of business on Friday, May 31, 2024
Read more: Draft Directive 9 on the travel rule relating to crypto asset transfers
USA 🇺🇸
House passes bill outlining a new framework for crypto regulation in the USA
What happened? On May 22, the Financial Innovation and Technology for the 21st Century Act (FIT21) passed the House by a bipartisan vote of 279-136 and is now one step closer to becoming law. Among others, FIT21 establishes clear lines between the SEC and CFTC, updates registration regimes, and includes the provisions regarding accountability and transparency with consumers.
Who’s affected? Crypto service providers operating in the USA
Deadline: –
EU 🇪🇺
The European Banking Authority publishes final draft technical standards under the Markets in Crypto-Assets Regulation
What happened? The European Banking Authority (EBA) released three sets of final draft regulatory technical standards (RTS) and one set of final draft implementing technical standards (ITS) regarding the approval process for asset-referenced token (ART) issuers, the evaluation of obtaining qualifying holdings in ART issuers, and the endorsement procedure for ART white papers issued by credit institutions under the Markets in Crypto-assets Regulation (MiCAR).
Who’s affected? Crypto Asset Service Providers
Deadline: In effect
Read more: The EBA publishes final draft technical standards under the Markets in Crypto-Assets Regulation
Other
Switzerland 🇨🇭
FINMA published a consultation on a new circular on “Rules of conduct under FinSA/FinSO”
What happened? FINMA is establishing its supervisory approach on important interpretation components in the circular, aiming to enhance transparency, legal certainty, and a consistent level of investor protection across all supervised institutions. The circular outlines guidelines for the provision of information to clients to enable them to make knowledgeable investment choices. This includes informing clients about the nature of financial services, associated risks with financial instruments or services, and any compensation received from third parties.
Who’s affected? Supervised financial institutions
Deadline: The public consultation on the draft circular will end on July 15, 2024
Read more: Rules of conduct under FinSA: FINMA launches consultation on new circular
