As part of our commitment to keeping our audience informed, j. awan & partners has compiled the most relevant regulatory developments across key financial hubs for April 2025. This newsletter highlights significant updates from the Gulf Cooperation Council, Europe, the Asia Pacific region, and the United States.

Gulf Cooperation Council Regulatory Developments

Abu Dhabi Global Market (ADGM) – FSRA and Registration Authority

• FSRA Proposes Amendments to Prudential Framework for Lower-Risk Firms

  • The FSRA issued Consultation Paper No. 2 of 2025, proposing updates to the prudential framework for Category 3B, 3C, and 4 firms. The proposed changes seek to streamline capital and reporting requirements and reflect ADGM’s proportional regulatory approach.

Source: Paper No. 2

• ADGM Registration Authority Fines AC Holding and Director USD 3.6 Million

  • The authority imposed a USD 3.6 million penalty on AC Holding and one of its directors for operating unauthorised crypto-related activities through special purpose vehicles (SPVs). The enforcement action underscores ADGM’s commitment to ensuring regulatory compliance in digital asset markets.

Source: ADGM

• ADGM FSRA Publishes 2025–2026 Business Plan

  • The FSRA released its strategic business plan, prioritising financial crime compliance, operational resilience, and sustainable finance. The plan sets supervisory expectations for ADGM-regulated firms over the next two years.

Source: FSRA Business Plan

• FSRA Supervision Outreach 2025

  • The FSRA hosted a supervisory outreach session summarising its 2024 activity and laying out 2025 supervisory priorities. Areas of focus include cybercrime prevention, governance, and financial crime. A Cyber Risk Management Rule will be introduced in GEN, including mandatory frameworks, reporting procedures, and incident notification within 24 hours. Supervisory work in 2025 will include scoped onsite visits, thematic reviews (including virtual asset firms and outsourcing), and updates to the collective investment funds framework and FSRA Connect.

• FSRA Proposed Enhancements to Cyber Risk Management

  • The FSRA proposed new cyber risk rules applicable to all ADGM-regulated entities. Requirements include identifying and managing cyber risks, integrating frameworks into risk governance, and reporting material incidents within 24 hours. A six-month transitional period is proposed post-implementation, and FSRA may introduce an annual return in future.

Source: Paper No. 3

Dubai Financial Services Authority (DFSA)

• DFSA Updates AML/CTF Module and TM AML Rulebook

  • The DFSA revised its AML/CTF Rulebook and Transaction Monitoring guidelines. Updates include enhanced due diligence requirements and transaction surveillance expectations for VASPs and other DIFC-regulated firms.

Source: DFSA Rulebook

• DFSA Hosts Regional Regulatory Insights Session with UASA

  • In collaboration with the Union of Arab Securities Authorities (UASA), the DFSA hosted a regional insights session to advance regulatory alignment in areas such as cybersecurity, innovation, and virtual asset regulation.

Source: DFSA

Europe

European Securities and Market Authority (ESMA)

• ESMA Consults on Proposed Amendments to CSDR Settlement Discipline Rules

  • ESMA launched a public consultation on proposed amendments to the Central Securities Depositories Regulation (CSDR). Key changes include mandatory partial settlement and digital allocation procedures. The consultation supports the EU’s move to T+1 settlement.

Source: ICMA

Financial Conduct Authority United Kingdom (FCA)

• FCA to Launch Live AI Testing Service

  • The FCA announced plans to launch a live testing environment for artificial intelligence (AI) systems used by financial firms. The initiative will allow firms to trial consumer-facing and market-risk models in a controlled setting. Feedback is open until 10 June 2025.

Source: AI Testing

Asia Pacific Region

Singapore – Monetary Authority of Singapore (MAS)

• MAS Monetary Policy Statement – April 2025

  • In its latest statement, MAS made a modest adjustment to the slope of the Singapore dollar NEER policy band in response to a slowdown in economic activity. Inflation forecasts were also lowered, with implications for market conditions and monetary outlook.

Source: MAS Statement

• MAS Proposes Enhancements to Technology Resilience Guidelines

  • MAS proposed updates to its Technology Risk Management Guidelines, introducing new expectations around third-party IT risk, quantum security, and anti-scam measures. Financial institutions are encouraged to bolster operational resilience.

Source: MAS Experts Proposal

United States

Securities and Exchange Commission (SEC)

• SEC Charges Three Texans in $91 Million Ponzi Scheme

  • The SEC filed enforcement actions against three individuals for orchestrating a Ponzi scheme that defrauded investors of more than $91 million. Charges include fraud and failure to register securities.

Source: SEC Charges

• SEC Charges PGI Global Founder with $198 Million Crypto Asset Fraud

  • The SEC brought charges against PGI Global’s founder for misappropriating crypto and forex investment funds. The case underscores the SEC’s focus on consumer protection in digital asset markets.

Source: SEC Charges

• SEC Awards $6 Million to Joint Whistleblowers

  • The SEC announced a $6 million whistleblower award to individuals whose information led to successful enforcement actions. The case reinforces the Commission’s emphasis on insider cooperation and confidentiality protections.

Source: SEC Awards

Key takeaways include:

• ADGM continues to enhance its regulatory ecosystem, with a new business plan prioritising financial crime compliance, sustainable finance, and operational resilience. The FSRA also launched Consultation Paper No. 3 of 2025 proposing robust cyber risk management rules and hosted a supervisory outreach session detailing 2025–2026 priorities, including financial soundness, ICT risk, and governance reforms.

• The ADGM Registration Authority imposed a significant USD 3.6 million enforcement action targeting unauthorised crypto activities, underscoring a firm stance on digital asset compliance.

• The DFSA advanced its AML/CTF framework with updated rulebook provisions for transaction monitoring and due diligence—particularly relevant to VASPs and cross-border firms. It also strengthened regional cooperation through a joint regulatory session with the Union of Arab Securities Authorities (UASA).

• In Singapore, MAS made a moderate adjustment to its monetary policy stance amid an economic slowdown, while also proposing enhanced technology resilience measures that include cybersecurity, quantum threats, and third-party risk oversight.

• ESMA launched a public consultation to amend CSDR settlement discipline rules, focusing on efficiency through digital allocation and auto-partial settlement, in line with the EU’s move to a T+1 framework.

• The UK FCA unveiled a forthcoming live AI testing environment to support safe and responsible deployment of AI models in financial services. This initiative reflects the regulator’s strategic shift toward innovation-led supervision.

• The U.S. SEC remained highly active on enforcement, charging multiple parties in high-value crypto and Ponzi schemes, and awarding $6 million to joint whistleblowers, reinforcing its dual focus on investor protection and market integrity in digital asset markets.

For further insights and tailored regulatory guidance, reach out to j. awan & partners.

Email: info@jawanpartners.com