The first week of 2025 has ushered in significant regulatory updates across financial markets globally. From evolving prudential requirements to enhanced compliance frameworks and sustainability-focused initiatives, these changes reflect the financial sector’s commitment to strengthening governance, transparency, and risk management. This roundup captures the key regulatory developments that aim to safeguard financial stability, protect consumers, and support innovation, offering a global perspective on the evolving regulatory landscape.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | Austria | FMA | MiCAR Regime Enforces Comprehensive Crypto-Market Oversight in Austria | As of December 30, 2024, the European Union’s Markets in Crypto-Assets Regulation (MiCAR) has become fully applicable, enabling the Austrian Financial Market Authority (FMA) to assume comprehensive supervision of Austria’s crypto-market. This regulation aims to foster integrity, transparency, and consumer protection within the burgeoning crypto sector. MiCAR mandates strict compliance from crypto-asset service providers (CASPs), requiring robust risk management, adequate internal controls, and transparency in business operations. The framework also introduces specific rules for asset-referenced tokens (ARTs) and e-money tokens (EMTs), emphasizing stability and consumer safeguards. Additionally, the regulation strengthens measures against unauthorized providers and crypto-fraud while setting standards for comprehensible white papers for other crypto-assets. Together with the upcoming Digital Operational Resilience Act (DORA) in January 2025, MiCAR promises a secure, transparent, and resilient crypto market in Austria. |
France | AMF | AMF Updates Doctrine to Align with ESMA Guidelines on ESG Fund Naming | On December 16, 2024, the French Financial Markets Authority (AMF) announced updates to its Position-Recommendation 2020-03, aligning with the European Securities and Markets Authority (ESMA) guidelines on the naming of funds incorporating Environmental, Social, and Governance (ESG) or sustainability-related terms. These amendments, effective immediately, aim to prevent greenwashing and ensure transparency in the marketing of funds to both professional and non-professional clients. The revised framework replaces existing criteria with ESMA’s guidelines for all collective investments, including those targeting professional clients. Funds created after November 21, 2024, must comply with these guidelines, while existing funds have until May 21, 2025. Additionally, funds marketed in France must adhere to both the ESMA guidelines and AMF’s existing standards in Position-Recommendation 2020-03 for ESG-related naming and communication. Key changes include fossil fuel exclusions and enhance educational warnings in commercial documents for foreign funds. These updates strengthen investor confidence by ensuring clear and consistent communication on the consideration of extra-financial criteria. | |
France | AMF | AMF Aligns with EBA Guidelines on Information Requirements for Crypto-Asset Transfers | The AMF has adopted the European Banking Authority (EBA) guidelines on information requirements for fund and crypto-asset transfers under Regulation (EU) 2023/1113, effective December 30, 2024. This integration aims to enhance transparency and combat risks like money laundering and terrorist financing. The guidelines apply to payment service providers, crypto-asset service providers (CASPs), and supervisory authorities, emphasizing compliance with clear procedures for detecting and managing incomplete information in transactions. CASPs operating in France must implement measures to identify and mitigate risks, especially those associated with self-hosted wallets. These updates align with the AMF’s supervisory role, fostering a secure and transparent regulatory environment for crypto-asset transfers. For further details, the guidelines are accessible on the EBA website | |
Hong Kong | HKMA | Updated AML Guidelines Reinforce Compliance for Financial Institutions | The latest FAQs on Anti-Money Laundering (AML), released on December 30, 2024, provide comprehensive guidance on regulatory expectations for financial institutions to strengthen their AML compliance programs. The updated document addresses critical areas, including enhanced due diligence requirements, reporting obligations for suspicious transactions, and measures to mitigate risks associated with emerging technologies like virtual assets. Financial institutions are urged to adopt risk-based approaches tailored to their operations and ensure robust training for staff to identify and manage AML risks effectively. These updates aim to enhance global efforts to combat money laundering and terrorist financing, aligning with evolving international standards. | |
Philippines | AMLC | Enhanced Guidelines on Transaction Reporting and Compliance Submissions | The newly issued guidelines focus on improving transparency and accuracy in transaction reporting and compliance submissions across regulated financial institutions. These updates emphasize the importance of standardizing reporting formats, implementing robust internal controls, and leveraging technology to ensure timely and precise reporting. Furthermore, these guidelines provide detailed requirements for entities to enhance their compliance processes, particularly in addressing discrepancies and adhering to global regulatory standards. Financial institutions are expected to align their practices with these guidelines to mitigate risks and ensure compliance. | |
Banking | European Union | European Union | Implementation of Enhanced Basel III Disclosure Standards for EU Institutions | The European Commission has introduced Regulation (EU) 2024/3172, implementing enhanced disclosure standards to align with Basel III requirements under Regulation (EU) No 575/2013. This regulation mandates financial institutions to publicly disclose critical prudential metrics, including available capital, risk-weighted assets (RWA), leverage ratios, and liquidity metrics. The new templates standardize disclosures on own funds, countercyclical buffers, and risk-weighted exposure amounts, addressing transparency and consistency in reporting. Institutions are also required to adapt to updated frameworks for market risk, counterparty credit risk, and credit valuation adjustments, reflecting more granular risk-weight treatments for exposures. The regulation comes into effect on January 1, 2025, ensuring greater alignment with global regulatory practices |
European Union | European Union | EU Directive on Prudential Supervision of Credit Institutions | The updated consolidated text of Directive 2013/36/EU, as amended up to December 30, 2024, strengthens the regulatory framework for the prudential supervision of credit institutions and investment firms in the European Union. It introduces provisions aimed at enhancing governance, transparency, and risk management within these institutions. Key updates include stricter requirements for capital buffers, liquidity management, and fit-and-proper assessments for management bodies. Additionally, the directive reinforces the alignment of EU regulations with international standards such as Basel III, ensuring resilience in the face of financial shocks. The comprehensive consolidation aims to provide clarity, streamline compliance obligations, and promote financial stability across member states. Institutions are urged to review and adapt their compliance frameworks considering these amendments to ensure adherence to the latest regulatory expectations. | |
Luxembourg | CSSF | Luxembourg Maintains Countercyclical Capital Buffer at 0.5% for Q1 2025 | The Commission de Surveillance du Secteur Financier (CSSF) of Luxembourg has published Regulation No. 24-09, maintaining the countercyclical capital buffer (CCyB) rate at 0.5% for Q1 2025. The decision aligns with the recommendation of the Systemic Risk Committee, which considered the current economic environment characterized by credit contraction and uncertainties in the real estate market. This measure ensures financial institutions retain sufficient capital to absorb potential losses and support economic stability during crises. The CCyB aims to counteract procyclicality in credit markets by adjusting capital requirements based on systemic risk levels. The regulation became effective upon its publication in the Luxembourg Official Journal on December 30, 2024. Financial institutions are encouraged to integrate this requirement into their capital planning to bolster resilience against economic shocks. | |
Luxembourg | CSSF | Temporary Flexibility in Loan-to-Value Ratios for Residential Mortgages | The CSSF Regulation No. 24-10, issued on December 30, 2024, extends temporary adjustments to residential mortgage lending conditions in Luxembourg. Effective from January 1, 2025, until June 30, 2025, the regulation allows lenders to issue buy-to-let loans with loan-to-value (LTV) ratios of up to 95% for up to 10% of their annual lending in this category. This flexibility addresses economic uncertainties and aims to mitigate the slowdown in the real estate market by easing restrictive credit conditions. The CSSF emphasizes that these measures are temporary and do not compromise household indebtedness or financial stability. Institutions must maintain prudent lending practices in line with EU directives. | |
Philippines | SEC | The Philippine Securities and Exchange Commission (SEC) has introduced several draft guidelines aimed at enhancing the country’s capital market. These proposals include amendments to the rules governing qualified institutional and individual buyers, new guidelines for crypto-asset service providers (SEC CASP Rules), Philippine Green Equity, seasoned issuers, and Sukuk bonds. Notably, the CASP Rules focus on regulating the crypto-asset industry to protect consumers and manage systemic risks, while the Green Equity guidelines aim to support sustainable investments aligned with environmental goals. Additionally, the guidelines on seasoned issuers and shelf registration seek to streamline securities offerings, and the Sukuk bond framework promotes the growth of Islamic finance. Public comments on these drafts are open until January 2025, reflecting the SEC’s commitment to inclusive policymaking and the development of a robust financial ecosystem. | ||
Insurance | Bermuda | BMA | The Bermuda Monetary Authority (BMA) has released a consultation paper outlining a proposed regulatory framework for Class IILT insurers and enhancements to Class IIGB insurers. The Class IILT framework aims to accommodate innovative life insurance models, including those leveraging digital assets for premiums, claims, and capital support. It emphasizes rigorous risk management, solvency requirements, and transparency through detailed financial disclosures and governance policies. Proposed amendments to the Insurance Returns and Solvency Regulations 1980 aim to align with digital reporting systems and address gaps from past reviews. Stakeholders are invited to submit comments by February 28, 2025, as the BMA seeks to advance innovation while maintaining robust policyholder protections and financial stability. |
As regulatory frameworks grow increasingly complex, staying compliant can be a daunting task. FinregE’s cutting-edge AI solutions simplify compliance management by automating monitoring, reporting, and integration with the latest regulatory requirements. Our tools provide businesses with the accuracy, clarity, and insights they need to align with global standards seamlessly. Book a Demo today and let FinregE be your trusted partner in navigating the intricate world of financial regulation.
