Welcome to our Q3 AML Round-Up, covering the latest developments across regulatory compliance and tax impacting the private markets.
This edition includes:
- Further changes to the effective date for the Investment Adviser Rule in the US
- The latest UK sanctions against Russia
- Updated beneficial ownership guidance in Canada
- Important FATCA/CRS updates for UK financial institutions
If you have any questions about the updates in this Round-up or would like to learn more about how we can support you in meeting your regulatory compliance obligations, please reach out to Louis Dodd or Askender Ouazzani.
United States of America
Frequently Asked Questions to clarify Suspicious Activity Reporting requirements – FinCEN has released answers to four FAQs providing clarification on requirements related to Suspicious Activity Reports. The FAQs address regulatory expectations around structuring SARs, conducting continuing activity reviews, and determining when not to file a SAR. They aim to help firms meet compliance obligations more effectively while focusing resources on activities that deliver the greatest value to law enforcement.
Comments on proposed survey of the costs of AML/CFT compliance – In September, the US Department of the Treasury’s Financial Crimes Enforcement Network invited public and federal agency comments on a proposed Survey of the Costs of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Compliance. The survey aims to collect data on the direct costs incurred by non-bank financial institutions in meeting AML/CFT obligations, and—where these overlap with other activities such as fraud monitoring—to assess the proportion attributable specifically to AML/CFT compliance. Responses will help FinCEN evaluate the financial impact of existing regulations and inform future deregulatory proposals. Written comments are due by December 1, 2025.
Proposed Rule to postpone effective date of Investment Adviser Rule – In September, FinCEN issued a notice of proposed rulemaking extending the effective date of the final rule establishing Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers . The proposed extension would move the implementation date from January 1, 2026, to January 1, 2028, following the exemptive relief order issued on August 5.
Executive Order on democratising access to alternative assets – In August, President Trump issued an Executive Order aimed at broadening access to private market assets for defined contribution retirement plans such as 401(k)s. The order seeks to reduce regulatory burdens and litigation risks that have historically limited wider participation in private markets. Within 180 days, the Secretary of Labor is required to review the Department of Labor’s past and current guidance on fiduciary duties under the Employee Retirement Income Security Act of 1974 (ERISA) and clarify the Department’s position on the inclusion of alternative assets. This includes guidance on the fiduciary processes necessary when offering asset allocation funds that contain alternative investments under ERISA. This is a significant step in expanding access to the private markets.
Europe
Updated EU list of non-cooperative tax jurisdictions – In October, the Council of the European Union confirmed the EU list of non-cooperative jurisdictions for tax purposes, with no changes. The list remains the same 11 jurisdictions as previously noted. While there have been some positive developments, these jurisdictions are still not fully cooperative on tax matters.
Additional EU sanctions against Russia – In July, the EU adopted its 18th package of sanctions against Russia, expanding export bans, tightening controls on Russia’s “shadow fleet,” lowering the oil price cap, and adding further banking and energy restrictions. The total number of individual listings now exceeds 2,500.
AMLA signs MoU with the European Supervisory Authorities (EBA, EIOPA, and ESMA) – On 3 July, the Anti-Money Laundering Authority signed a multilateral Memorandum of Understanding with the European Supervisory Authorities. The agreement sets out how the parties will exchange information and collaborate to combat money laundering and terrorist financing.
AMLA and ECB sign cooperation agreement – The Memorandum of Understanding sets out how the Anti-Money Laundering Authority and the European Central Bank will work together to strengthen cooperation between prudential and AML supervision, maximise effectiveness, and avoid duplication of effort.
Luxembourg
Update to CSSF Website – From 19 September 2025, the CSSF has established a single-entry point on its website for information on investment vehicles and investment fund managers. This change aims to increase transparency, simplify searches, and improve accessibility to key information.
Update on eDesk procedure: AML/CFT Market Entry Form (Funds and IFMs) – The CSSF has shared updates regarding the AML/CFT Market Entry Form, which collects standardised information on key money laundering and terrorist financing risks. The MEF must be submitted by funds seeking authorisation (including ELTIFs, regardless of AIF type) and by investment fund managers seeking authorisation or registration under CSSF AML/CFT supervision. While the form can be completed via eDesk by another employee or a third party, ultimate responsibility for its accurate completion remains with the “RC” and “RR.” The CSSF reminds firms to submit the MEF only in the event of a triggering occurrence. Since 23 September 2025, certain sections of the MEF are no longer required for authorized and registered IFMs and have been removed from the form.
Switzerland
Swiss and UK Supervisory Authorities Strengthen Cooperation in Financial Services – In September, the Swiss Financial Market Supervisory Authority and the UK Financial Conduct Authority and Prudential Regulation Authority signed a memorandum of understanding. The MoU outlines cooperation under the Berne Financial Services Agreement, including notifications and annual returns, registration in the relevant registers, dialogue between authorities, and supervisory intervention rights in the counterparty’s jurisdiction. This enhanced cooperation will strengthen the stability and integrity of financial markets in Switzerland and the UK and improve protection for clients and investors. The agreement will take effect from the start of 2026.
Canada
National Risk Assessment for 2025 – The Government of Canada has released its 2025 Assessment of Money Laundering and Terrorist Financing Risks, referred to as the National Risk Assessment. It provides a comprehensive analysis of the most significant ML and TF threats and vulnerabilities in Canada. As part of their compliance programs, FINTRAC expects businesses subject to the Proceeds of Crime and Terrorist Financing Act to use the NRA as a foundational input to identify and understand the inherent money laundering and terrorist financing risks relevant to their sector and operations.
Updated guidance on Beneficial Ownership Requirements – FINTRAC has issued updated guidance on beneficial ownership requirements under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Effective 1 October 2025, all reporting entities—except title insurers—must consult Corporations Canada’s database to verify the beneficial ownership of corporations they have assessed as posing a high risk of money laundering or terrorist financing. Any material discrepancies between beneficial ownership information and individuals with control in the database must be reported within 30 days.
The guidance details:
- Who qualifies as a beneficial owner
- When and how to obtain beneficial ownership information
- How to consult Corporations Canada’s database
- What constitutes a material discrepancy and how to report it
- Steps to take if beneficial ownership information cannot be obtained
- Record-keeping requirements and procedures when there are no beneficial owners
United Kingdom
UK introduces 90 new sanctions against Russia – On 15 October 2025, the Foreign, Commonwealth & Development Office published details of the latest sanctions against Russia under the UK’s Russia (Sanctions) (EU Exit) Regulations 2019. The new measures target additional entities, individuals, and vessels.
FCA supports tokenisation to boost efficiency and innovation in asset management – The FCA has outlined plans to support the adoption of tokenisation, providing guidance to firms on operating tokenised fund registers, streamlining the buying and selling of units in authorised funds—whether traditional or tokenised—and outlining a roadmap for advancing tokenisation. The guidance also highlights where tokenisation models could evolve and where regulations may need updating. It recognises tokenisation’s potential to broaden access to private markets investments and enable consumers to benefit from more cost-effective and personalised investment opportunities.
Global Irregular Migration and Trafficking in Persons Sanctions Regulations 2025 – This new legislation, which came into force on 23 July 2025, establishes a new sanctions regime to combat people smuggling and trafficking by imposing asset freezes and travel bans on those involved. It is designed to disrupt the finance flows of smugglers and deter them from profiting from trafficking. These regulations are independent of the UN and have been adopted by other jurisdictions, such as Guernsey and Jersey.
FATCA and Common Reporting Standard update for businesses with UK financial institutions – The UK has introduced tougher FATCA and CRS penalty rules, effective 16 July 2025, with new requirements for financial institutions and stricter consequences for compliance failures. Regulation 12 of the International Tax Compliance (Amendment) Regulations 2025 replaces the previous FATCA and CRS penalty rules with a more detailed framework (Regulations 22A–22N), clarifying the consequences of non-compliance.
Jersey
Updated Jersey Private Fund guide – On 6 August 2025, key enhancements to the Jersey Private Fund guide came into effect, reinforcing the jurisdiction’s commitment to a robust and responsive fund framework for international professional investors. Notably, the updated regime:
- Lifts the 50-offer/investor cap
- Expands the definition of professional investors
- Allows the listing of interests in JPFs with the JFSC’s consent
- Introduces a 24-hour authorisation process for JPF applications
Guernsey
2025 Financial Crime Risk Return reminder – The Guernsey Financial Services Commission has reminded all financial services businesses and prescribed businesses that the 2025 FCRR is due for submission by 31 October 2025. The FCRR can be submitted via the Commission’s online submissions portal. Late or inaccurate filings are subject to penalties.
Findings from MONEYVAL – The Guernsey Financial Services Commission has shared a presentation summarising the key findings from Guernsey’s MONEYVAL evaluation conducted last year. The presentation highlights Guernsey’s strengths in tackling money laundering and its high level of technical compliance with the FATF Recommendations. Key areas of effectiveness include the jurisdiction’s strong understanding of risk, robust international cooperation, effective supervision, strong internal controls within the private sector, and transparency around beneficial ownership. It also notes the deficiencies identified by MONEYVAL—particularly in relation to money laundering investigations and prosecutions—and outlines the steps the jurisdiction is taking to address these.
Thematic review of conflicts of interest – In September, the GFSC issued two thematic reports on conflicts of interest in the investment and fiduciary sectors. The reviews found that firms generally identify, manage, and record conflicts of interest appropriately, supported by a combination of policies, procedures, and training. It also noted examples of firms documenting the specific controls implemented to manage identified conflicts. Firms are encouraged to review the reports relevant to their activities when reviewing, updating, or revising their policies, procedures, and controls.
International
Consolidated Financial Action Task Force assessment ratings – In October, the FATF published an updated overview of the ratings that assessed countries have received for effectiveness and technical compliance. The FATF advises that these ratings should be read in conjunction with the detailed Mutual Evaluation Reports.
For more information on these updates contact Louis Dodd or Askender Ouazzani or explore our solutions to discover how we can support you in meeting your tax and regulatory compliance obligations.
