Regulatory Roundup Newsletter | March 2025
Welcome to the TCAE’s Regulatory Roundup Newsletter!
This monthly newsletter is designed to be your go-to source for the most important regulatory news and insights worldwide.
Enjoy reading and staying informed!
AML Regulatory Developments
Canada Strengthens Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regulations
On March 7, 2025, the Canadian Department of Finance announced new regulatory amendments under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), effective April 1, 2025. These changes target factoring companies, cheque cashing businesses, and financing/leasing firms, requiring them to implement AML compliance programs to close loopholes exploited by criminals.
Corporate Transparency Act Enforcement Suspended in the US
On March 2, 2025, the U.S. Treasury announced it would not enforce penalties or fines under the Corporate Transparency Act’s beneficial ownership information reporting rule for the existing deadlines. This action aims to provide clarity and relief to businesses adapting to the new requirements, with further guidance expected later in 2025.
Fines and Seizures
AML Bitcoin Founder Convicted of Wire Fraud and Money Laundering
On March 12, 2025, a federal jury in San Francisco convicted Rowland Marcus Andrade, 47, of wire fraud and money laundering related to the fraudulent marketing and sale of the cryptocurrency AML Bitcoin. Andrade misled investors by falsely claiming that the Panama Canal Authority was considering adopting AML Bitcoin for transactions, among other misrepresentations. He diverted over $2 million from investors for personal expenses, including purchasing properties and luxury vehicles. Sentencing is scheduled for July 22, 2025.
25 Canadians Charged in $21M U.S. Grandparent Scam
On March 4, 2025, U.S. authorities charged 25 Canadians in a transnational scam that defrauded elderly Americans of over $21 million. Based in Quebec call centers, the group posed as relatives and attorneys to trick seniors into handing over bail money, which was then funneled to Canada - sometimes via crypto. Most suspects were arrested in Canada, with five also facing money laundering charges.
Crypto Compliance Updates
The US Strategic Bitcoin Reserve
On March 6, 2025, President Donald J. Trump signed an executive order creating a Strategic Bitcoin Reserve, utilizing bitcoin seized in criminal and civil forfeiture proceedings. This initiative aims to position the United States as a leader in digital asset strategy by centralizing and securely managing these assets. The reserve will serve as a store of value, with no immediate plans to sell the accumulated bitcoin. Additionally, a U.S. Digital Asset Stockpile was established for other seized digital assets, with the Treasury Department authorized to determine their management strategies.
U.S. Treasury Lifts Sanctions on Tornado Cash
On March 21, 2025, the U.S. Department of the Treasury removed Tornado Cash, a cryptocurrency mixing service, from its sanctions list. This action follows a November 2024 federal appeals court ruling that the Treasury had exceeded its authority in sanctioning Tornado Cash. Despite the delisting, Treasury Secretary Scott Bessent emphasized ongoing concerns about state-sponsored hacking and money laundering, particularly involving North Korea.
AML Regulatory Developments
EBA Launches AML/CFT Consultation
On March 6, the European Banking Authority opened a public consultation on four draft Regulatory Technical Standards central to the EU’s new AML/CFT regime. These standards will shape how the forthcoming EU Anti-Money Laundering Authority (AMLA) supervises high-risk entities and how institutions comply with the new AML rules.
Europol Releases 2025 Organised Crime Threat Assessment
On 18 March 2025, Europol published its EU Serious and Organized Crime Threat Assessment 2025 (EU-SOCTA). The report outlines how organised crime evolves across Europe and identifies key threats shaping EU security policy. The report will guide law enforcement priorities and EU strategy, highlighting trends such as criminal use of technology, cross-border money laundering, and infiltration of legal sectors.
Fines and Seizures
ING Spain Fined €3.91M for Major AML Breach
Spain’s anti-money laundering authority, SEPBLAC, has fined ING’s Spanish branch €3.91 million and issued a public reprimand for failing to report suspicious transactions—classified as a “very serious” breach under Article 18 of Spain’s AML Law 10/2010. The penalty was approved in July 2023 and published recently. ING stated it cooperated fully with the investigation and has since implemented corrective measures.
UAE Imposes fines for AML failures
On March 25, 2025, the Central Bank of the UAE (CBUAE) imposed financial sanctions totaling AED 2,621,000 on five banks and two insurance companies operating in the UAE for non-compliance with reporting procedures under the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) guidelines. The sanctions were imposed due to failures in meeting compliance standards, particularly in due diligence and financial reporting accuracy, despite the CBUAE allowing sufficient time for rectification.
Abu Dhabi Regulator withdraws registration of DNFBP
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has withdrawn the registration of Emirates Advocates LLP as a Designated Non-Financial Business or Profession (DNFBP) due to significant non-compliance with anti-money laundering (AML) regulations. In 2021 and 2023, Emirates Advocates faced a financial penalty of USD10,000 and USD26,000, respectively, for AML failures and for failing to register for the goAML suspicious transaction reporting system. Consequently, Emirates Advocates LLP is no longer permitted to provide legal consultancy services within ADGM.
Crypto Compliance Updates
Global Enforcement Action: Authorities Seize Garantex Cryptocurrency Exchange Domain
In a coordinated international operation, global law enforcement agencies, including Europol, the U.S. Department of Justice, FBI, and several European police forces—have seized the domain of Garantex, a cryptocurrency exchange linked to sanctions evasion and illicit financial activity. This decisive action comes shortly after Garantex announced the suspension of its operations, following Tether’s move to freeze $28 million in USDT.
UK FCA Rejects Crypto Firm Registration
In a notable move on March 17, the UK Financial Conduct Authority refused to register Zeux Limited as a crypto-asset exchange provider due to inadequate AML controls. The FCA’s decision notice cited the firm’s failure to implement proper anti-money laundering measures and effective risk management, deeming its application a “significant risk of harm” to the public.
AML Regulatory Developments
Cambodia Revokes Huione Pay's Banking License Over Illicit Transactions
The National Bank of Cambodia revoked the banking license of Huione Pay, the financial arm of the Huione Group, after finding regulatory non-compliance. Authorities describe the Huione Group as the world’s largest illicit online marketplace, with its Telegram-based platform reportedly facilitating $24 billion in unlawful transactions, making it one of the biggest hubs for online crime. Huione denies any wrongdoing.
Fines and Seizures
India Arrests Crypto Exchange Administrator Following U.S. Request
Indian authorities arrested a cryptocurrency exchange administrator accused of participating in a money laundering conspiracy and violating international sanctions, acting on a request from the United States. The arrest follows a joint operation by the U.S., Germany, and Finland, which dismantled the online infrastructure of Garantex, a Russian-based crypto exchange tied to illicit financial activity.
Crypto Compliance Updates
Japan Proposes 20% Tax on Crypto Gains
Japan’s ruling Liberal Democratic Party is proposing to cut the capital gains tax on cryptocurrencies to 20% as part of broader reforms to recognize digital assets as a separate asset class. The plan also seeks equal tax treatment for crypto derivatives and spot trading and recommends deferring taxes on crypto-to-crypto swaps until they are converted into fiat currency.
Vietnam Plans Pilot for State-Regulated Cryptocurrency Exchange
Vietnam’s Ministry of Finance is preparing a proposal to pilot a state-regulated cryptocurrency exchange, aiming to create a secure platform for trading digital assets. Deputy Finance Minister Nguyen Duc Chi noted the global complexity of digital assets and confirmed the proposal will be submitted by March. The ministry also plans to draft regulations allowing Vietnamese businesses to issue their digital assets, supporting economic growth and aligning with international trends.
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