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 March 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

Dubai Financial Services Authority (DFSA)

• DFSA Publishes Consultation Paper No.165

  • The DFSA released Consultation Paper No. 165, proposing amendments to its approach to licensed functions and authorised individuals. The consultation is part of the DFSA’s ongoing efforts to enhance regulatory efficiency and better align roles and responsibilities in DIFC-based financial institutions.

Source: Paper No. 165

• Capital Requirement for Operational Risk

  • DFSA issued Consultation Paper No. 164, proposing updates to how operational risk capital requirements are calculated. The changes align with the Basel III Standardised Approach and include the introduction of a new calculation formula, the exclusion of the Internal Loss Multiplier (ILM), and updated definitions of operational risk. Applicable to prudential Categories 1, 2, and 5, with implementation proposed for 1 July 2026.

Source: Paper No. 164

• Consultation Paper No.160

  • This feedback statement provides the DFSA’s responses to industry comments on a previous consultation related to supervisory procedures and regulatory obligations.

Source: Paper No. 164

• Amendments to Legislation

  • DFSA issued Consultation Paper No. 164, proposing updates to how operational risk capital requirements are calculated. The changes align with the Basel III Standardised Approach and include the introduction of a new calculation formula, the exclusion of the Internal Loss Multiplier (ILM), and updated definitions of operational risk. Applicable to prudential Categories 1, 2, and 5, with implementation proposed for 1 July 2026.

Source: Notice

Europe

European Banking Authority (EBA)

• Public Consultation on AML/CFT Regulatory Technical Standards

  • The EBA launched a public consultation on four key draft Regulatory Technical Standards central to the EU’s AML/CFT framework. The proposals define criteria for direct AMLA supervision, ML/TF risk assessments, and customer due diligence.

Source: The EBA consults on new rules related to the anti- money laundering and countering the financing of terrorism package

European Securities and Market Authority (ESMA)

• Prioritisation of 2025 Deliverables

  • ESMA has reprioritised its 2025 regulatory agenda due to resource constraints and legislative overlap. Delivery of RTS on loan-originating AIFs under AIFMD 2.0 has been postponed by six months.

Source: ESMA22-50751485-1598 Prioritisation of 2025 ESMA deliverables

Financial Conduct Authority United Kingdom (FCA)

• Quarterly Consultation Paper No. 47

  • The FCA proposed amendments across several parts of its Handbook, including prudential standards and consumer protection rules. Stakeholders are invited to comment by April 14, 2025.

Source: Paper No. 47

• FCA Strategy 2025–2030

  • The FCA published its five-year strategy, focusing on building trust, reducing risk, supporting innovation, and ensuring better outcomes for consumers and markets.

Source: Strategy 2025-2030

Bank of England

• Launch of 2025 Bank Capital Stress Test

  • The Bank of England launched its biennial Bank Capital Stress Test, assessing the resilience of seven systemically important UK banks to severe economic shocks. Results will be published in Q4 2025 and will help calibrate capital buffers.

Source: 2025 Bank Capital Stress Test

• Operational Resilience Rules – Final Compliance Deadline

  • Firms regulated by the FCA and PRA must now demonstrate full compliance with operational resilience frameworks, including defined impact tolerances and recovery time objectives.

Source: Operational resilience: insights and observations for firms | FCA

Asia Pacific Region

Australia

• Australia Proposes New Crypto Regulation Structure

  • Australia has unveiled a national digital asset strategy, including crypto exchange licensing, CBDC pilots, and tokenised asset trials. The initiative aims to modernise financial infrastructure and improve access to alternative assets.

Source: Statement on Developing an Innovative Australian Digital Asset Industry

United States

Financial Crimes Enforcement Network (FinCEN)

• Interim Final Rule on Beneficial Ownership Reporting

  • FinCEN adopted interim rules narrowing beneficial ownership reporting obligations under the Corporate Transparency Act. It introduces relaxed requirements for domestic firms and new timelines for foreign entities.

Source: FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons, Sets New Deadlines for Foreign Companies

Securities and Exchange Commission (SEC)

• Initiation of Crypto Rulemaking Process

  • The SEC commenced its formal process for creating a tailored regulatory framework for cryptocurrency markets, building on its prior enforcement-led approach.

Source: SEC Crypto 2.0: Acting Chairman Uyeda Announces Formation of New Crypto Task Force

Key takeaways include:

• DFSA strengthens prudential and supervisory frameworks with two new consultation papers (CP164 and CP165) and updates to legislative structures, enhancing regulatory clarity in the DIFC.

• EBA and ESMA reprioritise major deliverables due to legislative overlap and resource limitations, impacting timelines on key AML and fund regulation standards.

• The FCA sets long-term regulatory direction with its 2025–2030 strategy focused on innovation, smarter supervision, and consumer outcomes.

• Bank of England launches its 2025 stress test, assessing systemic bank resilience under severe economic scenarios.

• Australia unveils a national digital asset strategy, introducing licensing for crypto exchanges, pilots for tokenised money, and wholesale CBDC frameworks.

• FinCEN eases beneficial ownership reporting rules under the Corporate Transparency Act, with new deadlines and relaxed obligations.

• The SEC advances crypto regulatory development with a formal rulemaking process and formation of a dedicated task force.

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

Email: info@jawanpartners.com