Regulatory Digest - March 2025

Stay ahead of the curve with the latest regulatory updates.

From Payments and Merchant Acquirers to Cross-Border Transactions and Business Lending, we’ve got you covered across key regions.

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Global

Regulation Name: FATF Updates Standards to Promote Financial Inclusion

‍Effective Date: 25 February 2025

Summary:
The Financial Action Task Force (FATF) has made key updates to its Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Standards. These revisions focus on enhancing financial inclusion, with particular attention to Recommendation 1 and its related Interpretive Notes. The changes highlight the need for proportionality in risk-based approaches, ensuring that AML/CFT measures do not unnecessarily exclude individuals from accessing financial services. FATF has also launched a public consultation to fine-tune its updated guidance, aiming to provide practical insights, including case studies on managing risks in high-risk environments.

Impact of Changes:

• Financial Institutions & Businesses: The updates offer greater clarity on applying simplified AML/CFT measures in low-risk scenarios, easing unnecessary compliance burdens.
• Regulatory Environment: Supervisors are encouraged to adopt a proportional approach when assessing compliance, avoiding overregulation that could stifle financial accessibility.
• Consumers: The changes are set to make financial services more accessible, especially for individuals in conflict zones or those using digital platforms, who have historically been excluded.

Action Required:
Financial institutions and regulators must align their practices with the updated FATF Standards, ensuring that AML/CFT measures are applied proportionately, without hindering financial inclusion. Stakeholders are urged to contribute to the FATF consultation, which is open until 4 April 2025.

This update marks an important step towards a more inclusive financial system, balancing robust safeguards with a practical approach to reducing exclusion.

Source: FATF Press Release

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EMEA

European Union 🇪🇺

Regulation Name: First General Board Meeting of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA)

‍Effective Date: 11 March 2025

Summary:
The newly formed Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) held its inaugural General Board meeting in Frankfurt, under the leadership of Bruna Szego. During this key meeting, representatives from EU Member States came together to formalise their cooperation and adopt AMLA’s rules of procedure. This marks a significant milestone in setting up the agency’s governance framework.

Impact of Changes:

• Financial Institutions & Businesses: Expect tighter oversight and greater alignment of Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations across the EU.
• Regulatory Environment: The establishment of AMLA strengthens coordination between national authorities, leading to a more unified approach to AML compliance across the region.
• Law Enforcement: Enhanced collaboration between EU agencies will bolster efforts to combat financial crime, ensuring a more effective response.

Action Required:
Financial institutions and businesses operating within the EU should prepare for an increase in regulatory scrutiny. It is crucial to stay ahead of evolving AML/CFT standards and ensure robust compliance frameworks are in place.

Source: AMLA Press Release

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Regulation Name: EBA Consultation on New AML/CFT Rules Under the EU AML Package

Effective Date: Consultation open from 6 March 2025 – 6 June 2025

Summary:
The European Banking Authority (EBA) has launched a public consultation on four draft Regulatory Technical Standards (RTS), which will shape the implementation of the EU’s new Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework. These standards will outline the requirements for financial institutions and supervisors to comply with the forthcoming AML/CFT package. Key areas of focus include direct supervision by the new EU Anti-Money Laundering Authority (AMLA), risk assessment methodologies, customer due diligence procedures, and enforcement actions. The finalised standards will be submitted to the European Commission by 31 October 2025.

Impact of Changes:

• Financial Institutions & Businesses: Expect more stringent compliance obligations, including standardised AML risk assessments and due diligence requirements.
• Regulatory Environment: AMLA will play a pivotal role in the direct supervision of high-risk institutions, ensuring a consistent approach to AML/CFT across the EU.
• Law Enforcement & Supervisors: Enhanced powers to impose proportionate, effective sanctions for AML/CFT violations.

Action Required:
Financial institutions should begin preparing for increased scrutiny and the evolving compliance landscape. Stakeholders are strongly encouraged to engage with the consultation process before 6 June 2025. A virtual public hearing will be held on 10 April 2025 to allow further discussion of the proposed measures.

This is an important opportunity for all parties to shape the future of AML/CFT regulations in the EU.

Source: European Banking Authority (EBA) Press Release

United Kingdom 🇬🇧

Regulation Name: The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 4) Regulations 2025

‍Effective Date: 18 March 2025 (Phase 1), 1 September 2025 (Phase 2)

Summary:
The UK government is taking significant steps to bolster corporate transparency and combat financial crime with the phased introduction of the Economic Crime and Corporate Transparency Act 2023. The regulation will be rolled out in two phases, starting on 18 March 2025, followed by further changes on 1 September 2025. These dates mark the continuation of efforts first set out in 2024 to strengthen the framework around corporate accountability.

Impact of Changes:

• Companies & Corporate Entities: Expect more stringent reporting and transparency requirements to help curb fraudulent activities and ensure greater corporate accountability.
• Financial Institutions & Businesses: Heightened compliance demands to actively detect and prevent economic crime, with a stronger focus on due diligence.
• Law Enforcement & Regulators: Enhanced powers for investigation and prosecution, making it easier to tackle financial misconduct effectively.

Action Required:
Organisations should begin reviewing and adapting their compliance processes to ensure they are fully aligned with these new regulations. The phased commencement means there’s time to prepare, but action now will ensure you’re ahead of the curve when these provisions come into force.

Source: UK Legislation

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America

United States 🇺🇸

Regulation Name: Corporate Transparency Act – Removal of Beneficial Ownership Reporting Requirements for US Companies

‍Effective Date: 21 March 2025

Summary:
Following an announcement from the U.S. Department of the Treasury on 2nd March 2025, the Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule to remove the requirement for U.S. companies and U.S. persons to report Beneficial Ownership Information (BOI) under the Corporate Transparency Act. This change is part of an adjustment to the definition of a “reporting company” in FinCEN’s implementing regulations.

Key Changes:

• U.S. Companies Exempt: Domestic companies, previously referred to as “domestic reporting companies,” are no longer required to submit their Beneficial Ownership Information (BOI) to FinCEN.
• Foreign Companies: Foreign entities registered to do business in the U.S. and meeting the new definition of a “reporting company” must still file their BOI with FinCEN by updated deadlines. These foreign companies will not be required to report U.S. persons as beneficial owners.

Deadlines for Foreign Entities:

• Before publication of the interim final rule: Foreign companies registered to operate in the U.S. must submit their BOI report within 30 days of the publication date of the rule.
• After publication of the interim final rule: Foreign companies registered to do business in the U.S. after the rule’s publication must submit their initial BOI report within 30 calendar days of receiving notification that their registration is effective.

Action Required:
Foreign companies must ensure they comply with the updated deadlines for filing their BOI reports with FinCEN. FinCEN is currently accepting public comments on the interim rule and intends to finalise the rule later this year.

Source: FinCEN

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Canada 🇨🇦

Regulation Name: Beneficial Ownership Reporting Requirements – New Deadlines for Foreign Entities

‍Issued By: Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

‍Effective Date: 21 March 2025

Summary:
Canada has updated its regulations surrounding the Beneficial Ownership Reporting Requirements, impacting both domestic and foreign entities. This change focuses on the reporting obligations concerning beneficial ownership information (BOI), marking a significant step in the country’s ongoing efforts to enhance financial transparency and fight money laundering.

Key Updates:

1. ‍Exemption for Domestic Entities:
   Canadian entities that were previously obligated to report BOI are now exempt from these requirements under the updated rules.‍
2. Foreign Entities:
   Only foreign entities doing business in Canada will now need to report their beneficial ownership information to FINTRAC. These companies will no longer be required to report the BOI of Canadian persons.

Deadlines for Foreign Entities:

• Foreign entities already registered to do business in Canada before the publication of this rule must submit their BOI reports within 30 days of the rule's publication.
• Foreign entities registered after the rule's publication must file their initial BOI report within 30 calendar days of receiving notice that their registration is effective.

Actions Required for Foreign Entities:
Foreign companies must ensure they comply with the new reporting deadlines. Importantly, they will not be required to report the BOI of Canadian persons, nor will Canadian persons need to report BOI for these foreign entities.

Consultation Process:
FINTRAC is currently accepting comments on the interim final rule, with plans to finalise the rule later this year.

This update reflects Canada's continuing commitment to ensuring greater transparency in financial transactions while simplifying compliance requirements for Canadian entities.

Source: FINTRAC

APAC

Malaysia 🇲🇾

Initiative Name: SC and MCMC Enhance Regulatory Oversight to Combat Online Scams

‍Issued By: Securities Commission Malaysia (SC) and Malaysian Communications and Multimedia Commission (MCMC)

‍Effective Date: 1 March 2025

Summary:
The Securities Commission Malaysia (SC) and the Malaysian Communications and Multimedia Commission (MCMC) are ramping up their joint efforts to tackle the growing menace of online scams and unlicensed activities. This enhanced collaboration is aimed at bolstering investor protection in Malaysia, improving enforcement processes, and leveraging technology – particularly artificial intelligence – to better detect and prevent scams.

Key Changes:

• Increased Cooperation: SC and MCMC will strengthen their partnership to tackle the surge in online scams, driven largely by advances in technology.
• Scam Prevention & Enforcement: Both agencies are set to intensify their enforcement actions, with a focus on using artificial intelligence to speed up the identification of scams and the removal of fraudulent content.
• Content Removal Statistics: In 2024, over 66,500 scam-related online contents were successfully removed. In the first two months of 2025 alone (1st January to 26th February), an additional 19,200 pieces of fraudulent content were taken down.
• Public Awareness Campaigns: A new initiative, the Online Safety Campaign, has been launched to educate the public on the dangers of online scams and fraud. SC and MCMC will continue to collaborate on raising awareness.

Action Required:
Collaboration between online service providers, regulators, and other stakeholders is essential to ensuring quicker detection of scams and the removal of fraudulent content. SC and MCMC will keep exploring further avenues for regulatory collaboration to prevent online scams, fraudulent investment schemes, and cybercrime within the financial sector.

Key Dates:

• 2024: SC received 4,859 public complaints related to scams and unlicensed activities.
• 2025: The enhanced cooperation between MCMC and SC will drive forward efforts to accelerate scam prevention and content removal.

This initiative marks a significant step forward in ensuring that Malaysia's digital space is safer and more secure for all. By joining forces, SC and MCMC are setting the stage for a more proactive approach to tackling online fraud.

Source: Securities Commission Malaysia (SC) and Malaysian Communications and Multimedia Commission (MCMC)

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Australia

Regulation Name: AML/CTF Amendment Bill 2024 – Reforms to Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Regime

‍Effective Date: Various implementation dates from 7 January 2025 to 1 July 2026

Summary:
The Australian Government has introduced major reforms to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) through the AML/CTF Amendment Bill 2024. These reforms broaden the scope of AUSTRAC's regulatory powers, impose new compliance obligations on businesses, and align Australian AML/CTF laws with global standards set by the Financial Action Task Force (FATF).

Key Changes:

• Newly Regulated Sectors (Tranche 2 Businesses) – From 1 July 2026, the following sectors will be brought under AML/CTF obligations:
  
  • Real estate professionals
  • Dealers in precious metals and stones
  • Lawyers, accountants, conveyancers, and trust/company service providers

• Expanded Regulation of Virtual Assets – From 31 March 2026, AUSTRAC will regulate additional services provided by virtual asset service providers, extending beyond just digital currency exchanges.

• Changes for Current AUSTRAC-Regulated Entities – Effective from 31 March 2026:
  
  • New value transfer obligations for the financial sector
  • Updates to AML/CTF programme requirements and customer due diligence
  • Strengthened tipping off offence (effective from 31 March 2025)

• Repeal of the Financial Transaction Reports Act 1988 (FTR Act) – Effective 7 January 2025. Businesses currently regulated under the FTR Act will transition to new AML/CTF requirements.

Implementation Timeline:

• 7 January 2025 – Repeal of the FTR Act
• 31 March 2025 – Strengthened tipping off offence takes effect
• 31 March 2026 – New AML/CTF rules for existing AUSTRAC-regulated entities and virtual asset service providers
• 1 July 2026 – AML/CTF obligations commence for Tranche 2 businesses

Impact on Businesses:

• Businesses entering the newly regulated sectors will need to implement AML/CTF programmes, conduct customer due diligence, and meet reporting obligations.
• Existing AUSTRAC-regulated entities will face additional compliance requirements.
• AUSTRAC will provide ongoing guidance and consultation through 2025 to help affected industries navigate the changes.

Action Required:
Businesses in newly regulated sectors should begin assessing their AML/CTF risks and prepare for compliance by July 2026. Public consultation on the new AML/CTF Rules is underway, with draft guidance expected to be released in mid-2025.

This is a critical development for businesses in the affected sectors. Compliance is not optional – it is essential for meeting legal obligations and ensuring continued operational success.

Source: AUSTRAC