Compliance Digest—October 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 crypto to fintech.
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AML
Global ??
The Financial Action Task Force (FATF) held its second Plenary on October 23-25, 2024
What happened? The Financial Action Task Force (FATF) held its second Plenary on October 23-24, 2024. Key outcomes of this meeting include the adoption of a report on countering ransomware financing and approval of a report on financial flows linked to human trafficking and migrant smuggling. The FATF also discussed the implementation of its Standards on Virtual Assets (VA) and Virtual Asset Service Providers (VASPs). Additionally, the FATF agreed on a public statement regarding the situation in Israel and Gaza. The meeting resulted in a revision of the FATF’s procedures for the fourth round of mutual evaluations. Lastly, updates were made to FATF’s public documents that identify jurisdictions under increased monitoring.
Who’s affected? AML-obliged financial institutions, DNFBPs and VASPs in FATF member countries
Deadline: The next FATF Plenary is scheduled for February 2025
Read more: Outcomes FATF Plenary, 23-25 October 2024
New Zealand ?????released an updated AML/CFT Programme Guideline on October 14, 2024
What happened? The Financial Markets Authority (FMA), Reserve Bank of New Zealand (RBNZ), and Department of Internal Affairs (DIA) released an updated AML/CFT Programme Guideline on October 14, 2024. The updated guidelines provide comprehensive details on AML obligations, including, in particular, Customer Due Diligence (CDD) procedures.
Who’s affected? All reporting entities under the AML/CFT regime
Deadline: The new guideline is effective immediately
Read more: AML/CFT Programme Guideline October 2024
Gambling?
Ireland ?????is on the way to implementing gambling regulations
What happened? The Gambling Regulation Bill was initially presented to Dáil éireann (the lower house of the Irish parliament) on December 2, 2022, with the objective of creating a gambling regulator and updating regulations. This includes implementing new measures to protect players and vulnerable groups, such as prohibiting credit card use for gambling and placing restrictions on bonuses and advertising. In October 2024, it was announced that the legislation will be enacted within the year.
Who’s affected? Gambling service providers in Ireland?
Deadline: –
Suggested read: Guide to iGaming Laws and Regulations Around The World (2024)
Crypto
EU ????
The European Securities and Markets Authority (ESMA) responded to the European Commission’s proposal to amend the Regulatory Technical Standards (RTS) under the Markets in Crypto-Assets Regulation (MiCA)
What happened? ESMA responded to the European Commission’s proposal to amend the Markets in Crypto-Assets Regulation (MiCA) Regulatory Technical Standards (RTS). The Commission had informed ESMA of its intention to adopt two of the proposed RTS with amendments and invited ESMA to submit a new draft RTS reflecting these changes.
In its response, ESMA:
The recommended amendments include, in particular, requiring applicant crypto-asset service providers and notifying entities to provide the results of an external cybersecurity audit. Additionally, the proposal expands the assessment of good repute for management body members of applicant crypto-asset service providers. These changes aim to ensure a thorough entry-point assessment for Crypto-Asset Service Providers (CASPs), other financial entities intending to provide crypto services in the EU, and investors in the crypto-asset space, which is expected to increase the resilience of the crypto-assets market and enhance investor protection.
Who’s affected? CASPs, other financial entities intending to provide crypto services in the EU and investors in the crypto-asset space.?
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Deadline: The European Commission may now adopt the two RTS with the amendments it considers relevant or reject them. Additionally, the European Parliament and the Council have a period of three months to object to an RTS adopted by the Commission.
The Isle of Man ???? implemented the Travel Rule among other AML updates
What happened? In October, the AML Act of the Isle of Man (IoM) was updated, particularly to include the implementation of the FATF Travel Rule.
Who’s affected? Virtual Asset Service Providers (VASPs)
Deadline: Amendments to the AML/CFT Act take effect from Friday, October 25, 2024, while the new Travel Rule (Transfer of Virtual Assets) Code 2024 comes into operation on Monday, October 28, 2024.
The Netherlands ???? The Dutch government invited public consultation on a proposed law aimed at tax data sharing for VASPs
What happened? The Netherlands was among the 47 nations that adopted the Crypto-Asset Reporting Framework (CARF) established by the Organisation for Economic Co-operation and Development (OECD) in November 2023. Currently, the Netherlands is seeking to require providers of crypto services to collect, verify, and share their users’ data with the Tax and Customs Administration as of January 1, 2026. The aim of the bill is to create more transparency around the possession of crypto assets, which can help prevent tax evasion and avoidance.
Who’s affected? VASPs
Deadline: January 1, 2026.
The Cyprus ?????Securities and Exchange Commission (CySEC) clarifies the transitional provisions for different types of Crypto-Asset Service Providers and issuers
What happened? CySEC announced that it will not accept new applications for Crypto-Asset Service Providers (CASPs). Previously, CySEC issued Circular C617 (‘Circular’), which provides guidance on the implementation of the Markets in Crypto-Assets Regulation (MiCA) and related transitional provisions. Pursuant to the Circular, CySEC will begin accepting applications for authorization under MiCA starting January 2, 2025.
Who’s affected? Foreign CASPs operating in Cyprus
Deadline: CySEC starts accepting MiCA authorization applications on January 2, 2025, while the end of transitional period for existing CASPs is January 1, 2026 Read more: CySEC will not accept new applications for CASPs
Vietnam ???? officially issued the National Blockchain Strategy
What happened? In October the Vietnamese government officially issued the National Strategy on Application and Development of Blockchain Technology to 2025, with a Vision to 2030. Key points of the strategy define blockchain as a leading technology trend of the Fourth Industrial Revolution. The strategy aims to make Vietnam a regional leader in blockchain technology by 2030, with goals to:
The government proposed specific actions for 2024-2030, which include perfecting the legal environment, developing infrastructure, and forming a blockchain industrial ecosystem. Additionally, the Vietnam Blockchain Association (VBA) was assigned specific tasks, such as developing “Blockchain Made in Vietnam” platforms and gathering Vietnamese digital technology enterprises to enhance competitiveness.
Who’s affected? The government ministries and agencies and Vietnamese digital technology enterprises
Deadline: No specific deadline
Taiwan’s ???? Financial Supervisory Commission (FSC) released new Anti-Money Laundering laws for VASPs
What happened? Taiwan’s Financial Supervisory Commission (FSC) announced new Anti-Money Laundering (AML) regulations for VASPs. In particular, VASPs must implement Customer Due Diligence measures, including verifying customer identities and conducting ongoing monitoring of transactions.
Who’s affected? Virtual Asset Service Providers (VASPs) operating in Taiwan
Deadline: March 2025
Read more: 新聞稿