Regulatory World Digest — 2026-06-28

US Stablecoins under new AML and Sanctions regimes

The US regulatory landscape for digital assets is shifting toward a formal banking-style framework. The Office of the Comptroller of the Currency (OCC) and FinCEN are moving to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This legislation effectively treats permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act.

For business operators, this is a significant transition from a loosely regulated space to a strict compliance environment. Issuers are now required to maintain a formal Customer Identification Program (CIP) and implement rigorous Anti-Money Laundering (AML) and sanctions compliance risk management. Failure to establish these frameworks could lead to severe enforcement actions, as the US government seeks to eliminate the "grey areas" previously exploited in the stablecoin market.

AI Governance: Principles over New Rules

In the UK, the Financial Conduct Authority (FCA) is signaling a distinct approach to artificial intelligence. Rather than introducing a separate "AI Rulebook," the regulator is relying on existing frameworks, specifically the Consumer Duty and the Senior Managers and Certification Regime (SM&CR).

This approach means that while there are no new laws to memorize, the burden of proof is on the firm. Managers must be able to explain AI-driven decisions and demonstrate how they monitor outcomes to ensure fair treatment for vulnerable customers. Because the SM&CR is involved, the accountability for AI failure will lie directly with designated senior executives. This shift means AI adoption is no longer just a technical challenge but a governance priority that must be documented and defensible to the regulator.

Banking Infrastructure and Market Transparency

Significant upgrades to financial plumbing are emerging across the EU and UK. The UK has launched its bond consolidated tape, operated by ETS Connect UK, providing investors with a real-time, single source of prices and trading activity for the first time. This is a major win for market efficiency, as it reduces the reliance on scattered data and improves pricing accuracy for fixed-income participants.

In the EU, the European Central Bank is expanding its TIPS (TARGET Instant Payment Settlement) system to include Iceland, facilitating faster, seamless instant payments. Simultaneously, ESMA has published its register of authorized external reviewers for European Green Bonds. This is a critical move to combat "greenwashing," as only these registered reviewers can now certify that bond proceeds align with EU Taxonomy requirements. For firms issuing green debt, using a non-registered reviewer now carries significant regulatory and reputational risk.

Consumer Credit and Mortgage Flexibility

The UK is currently rebalancing its approach to consumer lending. On one hand, the FCA is tightening the rules for "Buy Now Pay Later" (BNPL) services. To prevent consumers from entering debt spirals, BNPL firms will now be required to perform proportionate affordability checks and provide clearer information before credit is extended. This will likely increase the operational cost of customer onboarding for fintech lenders.

Conversely, the FCA is proposing to widen access to mortgages. New guidelines would allow lenders more flexibility to consider the actual circumstances of the self-employed, those paid in foreign currencies, and older borrowers. By moving away from "standard templates" for affordability, the regulator is encouraging lenders to unlock more housing wealth, which could open new market segments for mortgage providers.

AML Enforcement and Global Sanctions

Enforcement is becoming faster and more aggressive. In the US, FinCEN has moved to expand the definition of the Huione Group—already a primary money laundering concern—to include H-Pay Service PLC and other successor entities. This serves as a warning that the US will aggressively pursue "successor entities" that attempt to rebrand to avoid sanctions.

In the UK, the FCA's recent action against CACEIS UK, which resulted in a £31.7 million voluntary payment to WealthTek clients, highlights the danger of "passive" compliance failure. CACEIS was censured not for active fraud, but for failing to act on red flags that a client was not authorized to hold certain assets. This underscores that for sub-custodians and asset servicers, merely "checking the register" is insufficient; the regulator expects proactive intervention when discrepancies are found.

Routine Global Updates

In Switzerland, the SNB has focused on monetary policy data, including adjustments to the remuneration of sight deposits and new SNB Bill auctions. Hong Kong has issued several scam alerts regarding fraudulent banking websites and published results for government bond tenders. In the EU, various technical amendments to the EEA Agreement concerning financial services, procurement, and environmental standards have been adopted.

This overview is informational, not legal or compliance advice. Consult your lawyer or compliance specialist on specific decisions.

Sources

This overview is based on official regulator publications for the period: