What’s in this update?
- Upcoming UK data protection changes
- Brewing GDPR conflict between the EU and US
- Massive EU cuts to ESG rules in the Omnibus package
- US stops FCPA enforcement
- Updated high risk jurisdictions for AML
What’s big in compliance this month?
A transatlantic data war is becoming increasingly likely. President Trump’s actions against GDPR have put the EU-US data transfer agreement at serious risk. If it collapses, tools like Zoom and Teams could be banned in the EU.
Meanwhile the UK is forging ahead with sweeping changes to GDPR. The Data (Use and Access) Bill is flying through parliament despite some turbulence over AI copyright rules.
The EU declared ESG compliance officially dead. The Commission published its vastly reduced Omnibus proposals gutting CSRD, CSDDD and various other sustainability rules affecting tens of thousands of businesses.
UK regulatory update
New requirements on HE/FEon sexual harassment have been published. The ‘E6’ condition requires all higher and further education institutions to protect students from harassment and sexual misconduct.
The UK’s Digital Markets, Competition and Consumers Act 2024 (DMCCA) is now in force. It gives additional powers to the Consumer Markets Authority (CMA) and changes compliance requirements for companies interacting with customers digitally.
The Financial Conduct Authority (FCA) is under pressure from the House of Lords and others to pull back on its plan to name and shame firms under investigation. Meanwhile the FCA head had indicated a possible overhaul of the Senior Manager’s Certification Regime (SMCR).
The UK is banning aqueous film forming foam (AFFF) fire extinguishers. From 4 July 2025, the use of AFFF extinguishers will be completely prohibited due to environmental and health concerns.
The Scottish Government has suspended the implementation of Private Purpose Trusts, which had raised significant concerns about their abuse as vehicles for money laundering and tax evasion.
EU regulatory update
With the EU’s Omnibus proposal gutting sustainability compliance rules, the full scale of the changes outlined by various parties including the Commission and EU Parliament suggests little of the ambitious Green New Deal will survive.
The EU has proposed a new Anti-Corruption Directive, which would harmonize bribery rules across the bloc. It would put more pressure on EU companies to have stronger procedures, such as Gifts and Hospitality reporting.
US regulatory update
President Trump suspended enforcement of the FCPA (Foreign Corrupt Practices Act), the US’s main anti-bribery law. Although the Justice Department will no longer be prioritising FCPA cases, the SEC and US Attorney’s can still do so. FCPA has a 5 year statute of limitations, meaning cases could be prosecuted by a new administration.
The US has declared several criminal cartels as terrorist organisations. Alongside increased sanctions on Iran, the risk of a due diligence failing resulting in serious regulatory consequences has exponentially increased.
The legal market
A solicitor was caught up in a significant fraud and fined £26,000 after failing to spot several red flags due to the fraudulent request coming through on a Friday afternoon.
A series of fines were levied against a London law firm and its compliance officer for false declarations about its firm-wide risk assessment, and failing to conduct Source of Funds checks.
The FATF—the global AML body—has updated its list of high risk jurisdictions. The UK AML regulations have automatically updated as a result. Our Guide to High Risk Jurisdictions for Money Laundering has been updated to reflect these February 2025 changes.
The Netherlands is considering amending its strict AML laws, to align more closely with the EU’s upcoming ‘single rulebook’ on AML compliance.
Did you know?
A shipment of wheat from occupied Ukraine intended for Syria made a quick change to Egypt after the fall of Syrian dictator Assad in December. The product was bought by the Egyptian military, creating a serious sanctions risk for supply chains connected to Egypt.
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