Regulatory Blog

On 24 July 2025, a key bill of law was brought before the Luxembourg Parliament introducing a proposal designed to rejuvenate the carried interest tax framework for managers of Luxembourg alternative investment funds. With its sights set on fiscal year 2026, this initiative intends to modernise the tax regime, enhancing Luxembourg’s ability to attract talented professionals in the competitive AIF sector.

On 18 June 2025, MONEYVAL published its 4th Enhanced Follow-up Report, highlighting Cyprus' significant progress in combating money laundering and terrorist financing. The report acknowledges Cyprus' progress in addressing technical compliance deficiencies under the Financial Action Task Force standards.

On 18 June 2025, the European Council and European Parliament reached a provisional deal on the shortening of the securities settlement cycle from two days from the execution of an order to one day. This initiative was proposed by the European Commission on 12 February 2025 aiming to improve efficiency of transactions in transferable securities within the EU capital markets.

On 24 July 2025, the Bermuda Monetary Authority released a Consultation Paper outlining proposed amendments to its Bermuda Monetary Authority Act 1969.

The Cayman Islands Monetary Authority updated the Virtual Asset Service Providers application form (APP 101-84-05) on the REEFS portal, effective 14 July 2025. These changes aim to streamline the registration, licensing, and waiver processes by adding new questions and clarifying document requirements, ensuring compliance with the Virtual Asset Service Provider Act (2024 Revision) and related regulations.

The British Virgin Islands and Cayman Islands are leading jurisdictions for establishing regulated trustee businesses. Their regulatory oversight, tax-neutral environments and innovative trust structures continue to attract individuals and entities seeking to operate within a well-regulated trust framework.

On 21 July 2025, the Bermuda Monetary Authority released a consultation paper proposing a regulatory framework for Digital Identity Service Providers in Bermuda. This initiative aims to establish a robust, risk-based supervisory regime to enhance trust, innovation and resilience in the digital identity ecosystem, aligning with Bermuda's leadership in the digital economy.

On 23 July 2025, the European Banking Authority released its report on the direct provision of core banking services from third countries under the new Article 21c of the Capital Requirements Directive. The report evaluates whether third-country undertakings should be allowed to provide such services directly to EU financial sector entities without establishing a branch in the EU, considering financial stability and EU competitiveness.

On 3 July 2025, the UK Office of Financial Sanctions Implementation issued four new Frequently Asked Questions and withdrew two existing ones.

On 6 June 2025, the Cyprus Securities and Exchange Commission issued Circular 710, informing regulated entities about the release of the 2024 annual report published by the Unit for Combating Money Laundering.

On 12 June 2025, the European Council adopted a regulation imposing additional tariffs on agricultural products and specific nitrogen-based fertilisers from Russia and Belarus imports that were not previously subject to extra customs duties. This measure aims to reduce the EU's reliance on these imports, diversify supply chains and limit Russia's export revenues.

On 17 July 2025, the Office of Financial Sanctions Implementation introduced new online forms for licence applications, reporting suspected breaches, and other key submissions like frozen asset reporting. This initiative aims to modernise and streamline processes, ensuring faster, more efficient and accessible services.