Compliance Digest—August 2024
Compliance Digest—August 2024

Compliance Digest—August 2024

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 AI to crypto.

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AML?

USA ???? FinCEN Issues Final Rules for Real Estate and Investment Adviser Sectors?

What happened? US officials finalized rules Wednesday (Aug 28) that will extend AML obligations, including AML/CFT compliance programs and suspicious activity reporting, to investment advisers. The rules will also require details on all-cash US residential purchases by entities or trusts.

Who’s affected: Real estate and investment adviser sectors

Read more: FinCEN Issues Final Rules to Safeguard Residential Real Estate, Investment Adviser Sectors from Illicit Finance

Fintech

Hong Kong ???? The Securities and Futures Commission (SFC) and Hong Kong Monetary Authority’s (HKMA) launch Project Ensemble Sandbox?

What happened? The Securities and Futures Commission (SFC) and Hong Kong Monetary Authority’s (HKMA) launched the Project Ensemble Sandbox (the Sandbox) on August 28, co-leading tokenization initiatives for the asset management industry.? This is to build and scale the tokenization market in Hong Kong.

Who’s affected??All relevant industry participants

Read more: SFC welcomes launch of Project Ensemble Sandbox as key step in Hong Kong’s tokenisation development?

Digital Assets??

Ghana ???? Ghana issued Draft Guidelines On Digital Assets

What happened? While Ghana’s Central Bank notice prohibiting banks and payment service providers (PSPs) from facilitating crypto asset transactions remains effective, the Bank of Ghana issued draft guidelines on digital assets. These guidelines are intended to reveal the Bank’s proposed regulatory measures and solicit feedback from industry and the public.?

Who’s affected? Market stakeholders

Read more: Draft Guidelines On Digital Assets


Thailand ???? Thai SEC launches Digital Asset Regulatory Sandbox

What happened? The Thai Securities and Exchange Commission is launching a Digital Asset Regulatory Sandbox to enable experimentation and foster the development of innovations that enhance the efficient delivery of digital asset services in real-world scenarios.?

Who’s affected? Market stakeholders

Read more: Thai SEC Regulatory Sandbox


Global ??

1. The International Capital Market Association (ICMA) and the International Securities Lending Association (ISLA) jointly announced the release of the Digital Assets Annex

What happened? This new annex to the Global Master Repurchase Agreement (GMRA) introduces a standardized framework and set of terms designed to facilitate the documentation of repo transactions involving digital assets. These include transactions collateralised by, or involving payment in, digital cash, digital securities—such as tokenized traditional securities—and asset-backed digital assets.

Who’s affected? Market stakeholders

Read more: ICMA announcement of Digital Asset Annex

2. ADGM issued a Proposed Regulatory Framework for the issuance of Fiat-Referenced Tokens

What happened? The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) released Consultation Paper No. 7 of 2024, which outlines proposed enhancements to its regulatory framework to permit the issuance of Fiat-Referenced Tokens (FRTs) from ADGM. The FSRA is seeking public feedback and comments on these proposals.

FRTs are a type of stablecoin backed by high-quality, liquid assets denominated in the same currency as the FRT and can be quickly liquidated with minimal impact on price. FRTs are designed for use as a payment method and share certain characteristics with Stored Value.

Who’s affected? Crypto Asset Service Providers

Deadline: The consultation period will close on October 3, 2024

Read more: Proposed Regulatory Framework for the issuance of Fiat-Referenced Tokens

Gambling?

Brazil ???? finalizes gambling regulations?

What happened? On July 31 and August 1, 2024, the Brazilian Ministry of Finance’s Secretariat of Prizes and Betting (SPA) published five separate ordinances with supplementary rules for fixed-odds betting operators.?

Who’s affected? Fixed-odds betting operators in Brazil

Deadline: in force?

Read more: PORTARIA SPA/MF No 1.207, DE 29 DE JULHO DE 2024

Suggested read: Brazil Gambling Regulations: All You Need to Know in 2024

UK ???? Gambling Act Review implementation update

What happened? The UK government has outlined its intention to implement several key measures based on consultations regarding land-based gambling. These measures include:

  • Relaxation of casino rules, allowing for an increase in the number of gaming machines
  • Changes to the 80/20 rule for arcades and bingo halls
  • Allowing direct use of debit cards on gaming machines
  • Introduction of age limits on certain gaming machines
  • Increasing the maximum fees that licensing authorities can charge

Who’s affected? UK-based gambling service providers

Read more: Gambling Act Review implementation update

Suggested read: Guide to iGaming Laws and Regulations Around The World (2024)

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