on 23 october 2025, the bvi international tax authority (ita) published a notice to advise that the organisation for economic co-operation and development (oecd) introduced significant updates to the common reporting standards (crs), now referred to as crs 2.0, alongside the development of the crypto-asset reporting framework (carf). these initiatives aim to improve global tax transparency and address emerging challenges in financial markets. the bvi will implement crs 2.0 starting 1 january 2026, with reporting deadlines set for may 2027. virgin islands financial institutions will need to collect the new information during 2026 to be reported to the ita by may 2027. carf implementation is scheduled for 2028. key updates in crs 2.0: inclusion of digital products: financial accounts now encompass electronic money products and central bank digital currencies (cbdcs). expanded definition of financial assets: relevant crypto-assets, derivatives and indirect crypto-asset investments are now included. due diligence: strengthened procedures mandate validation of self-certifications for account holders and controlling persons. clarified reporting entities: e-money providers and accounts holding cbdcs are now explicitly covered. improved reporting quality: updates include expanded reporting requirements, reliance on aml/kyc procedures and exceptional due diligence for cases lacking valid self-certifications. oecd’s guide highlights: the crs, introduced in 2014, was designed to promote tax transparency for financial accounts held abroad. over 100 jurisdictions have implemented the crs, but evolving financial markets, including the rise of crypto-assets, necessitated a comprehensive review. this review, conducted by the oecd in collaboration with g20 countries, resulted in two major outcomes: crypto-asset reporting framework (carf): a global tax transparency framework for the automatic exchange of tax information on crypto-asset transactions. carf addresses the unique challenges posed by crypto-assets, which often operate outside traditional financial systems, reducing tax administrations' visibility on tax relevant activities. carf includes: rules for domestic implementation, covering the scope of crypto-assets, reporting entities, transactions and due diligence procedures. a multilateral competent authority agreement for information exchange. an xml schema for standardised reporting and exchange of information between tax administrations. amendments to the crs: updates to include new financial assets, products and intermediaries, while avoiding duplicative reporting with carf. enhancements include: detailed reporting requirements. strengthened due diligence procedures. new categories for non-reporting financial institutions (e.g., genuine non-profit organisations) and excluded accounts (e.g., capital contribution accounts). additional guidance to improve consistency in crs application. next steps for financial institutions: financial institutions in the bvi must familiarise themselves with these changes to ensure compliance with the revised reporting standards. for further details, the bvi ita’s notice can be found here

on 15 october 2025, the uk intensified its sanctions against russia, targeting key sectors of its economy in response to the ongoing conflict in ukraine. these measures aim to undermine russia's ability to fund its military operations while signalling the uk's commitment to global security and peace. a breakdown of the latest developments is as follows: key highlights of the new sanctions targeting russian oil giants: the uk has sanctioned rosneft and lukoil, russia's two largest oil companies, which collectively export 3.1 million barrels of oil daily. this follows earlier sanctions on gazprom neft and surgutneftegas. these measures aim to cut off significant revenue streams for russia, which heavily relies on oil exports for funding. crackdown on the "shadow fleet": 44 tankers involved in transporting russian oil, along with four oil terminals in china and an indian refinery (nayara energy ltd), have been sanctioned. seven specialised lng tankers and the chinese beihai lng terminal, linked to arctic lng2, a disrupted russian project, are also targeted. broader economic measures: this package is aimed at tightening enforcement of existing restrictions and at neutralising circumvention channels in global oil flows — which is why the uk has targeted the “shadow fleet”, relevant terminals and lng infrastructure. sanctions on businesses supplying critical electronics for russian drones and missiles, spanning countries including thailand, singapore, turkey, and china. financial impact: since february 2022, uk sanctions have frozen £28.7 billion of russian assets (as of may 2025) under the uk’s russia sanctions regime, showcasing the uk's role in enforcing financial restrictions. legal services general licence (gl) expansion: ofsi in the uk clarified the scope of the new gl, effective 29 october 2025 which requires reporting payments to ofsi within 14 days and runs (as published) until 28 april 2026. the gl now applies to most uk autonomous sanctions regimes, expanding beyond its previous focus on russia and belarus. the gl can be found here and ofsi’s publication notice here. law firms, legal advisors, counsel, and providers of expenses can receive payments from designated persons under these regimes, provided all conditions of the licence are met. payments are permitted from abroad into uk bank accounts or certain non-uk accounts, but the gl does not allow payments to or for the benefit of individuals designated under united nations sanctions. jurisdictional extent: uk sanctions measures apply in the uk overseas territories (ukots) (through orders in council) and implemented in the crown dependencies (cds) through their own domestic legislation, which aligns with uk sanctions policy. the changes referred to above automatically apply in the ukots and in practice in the cds with the exception of the gl which applies only in the uk. the uk's latest sanctions against russia represent a significant escalation in the economic and political pressure on the kremlin. while these measures are expected to have an impact on russia's economy, they also reinforce the uk's commitment to supporting ukraine and upholding international law. please see futher: uk press release dated 15 october 2025 available: here policy paper on “list of russia sanctions targets” dated 15 october 2025” - here general licence int/2025/7323088 (legal services) – here

on 6 november 2025, the cayman islands financial reporting authority (fra) published a notice requiring all entities holding frozen assets linked to designated persons (dps) under uk sanctions law to submit an annual report. this measure is part of global efforts to combat financial crime, terrorism financing and human rights abuses. here is what you need to know: what you need to do who must report: entities holding funds or economic resources owned, held or controlled by dps listed under uk sanctions law. exemptions: no need to submit a report if no such assets are held. deadline: submit reports by 30 november 2025, detailing assets as of 30 september 2025. going forward, there is now an ongoing obligation to make such reports. reporting requirements: report all funds or economic resources, whether held in the cayman islands and overseas that are frozen under uk sanctions. include asset types, values (in usd if applicable) and account details. use the official frozen assets reporting template available on the fra website. ongoing compliance regularly check for accounts linked to dps. freeze and report newly identified assets immediately. avoid dealing with or making assets available to dps unless licensed. submission details email completed forms to financialsanctions@gov.ky. why this is happening global compliance: the cayman islands implements uk sanctions under the sanctions and anti-money laundering act 2018. these sanctions target individuals, entities and regimes involved in activities like terrorism, corruption and human rights violations. transparency and accountability: reporting ensures that funds and economic resources linked to dps are identified, frozen and not used to support illicit activities. failure to comply is an offence and may result in penalties. for more information, the official notice can be accessed here and the frozen assets reporting template here.

on 6 october 2025, the european supervisory authorities (esas) issued a warning about the risks of crypto-assets. while the eu's new markets in crypto-assets regulation (mica) provides some safeguards, the crypto market encompasses a wide range of assets that remain volatile, complex and prone to scams. key points for consumers: understand the risks: crypto-assets are not all the same. consumers must learn about the product, evaluate and thus anticipate risks such as extreme price swings, liquidity issues, and misleading promotions, especially on social media. check authorisations: verify that the crypto-asset service provider (casp) is authorised under mica via the esma register, accessible here. secure your assets: use secure devices and wallets to protect private keys, as losing them results in irreversible loss. mica, effective from december 2024, regulates certain crypto-assets like electronic money tokens (emts) and asset-referenced tokens (arts), but excludes others like crypto-assets that are unique and non-fungible such as domain names. therefore, consumers should be aware that investing or using crypto-assets not regulated by mica or other eu financial services legislation or that are offered through unauthorised crypto-asset service providers may lead to significant risks and limited or no consumer protection. esma’s press release can be found here the warning letter and the accompanied factsheet explaining what the new eu regulation on mica means for consumers, can be accessed here and here

on 10 october 2025, the eu council updated its list of non-cooperative jurisdictions for tax purposes, maintaining the same 11 countries: american samoa, anguilla, fiji, guam, palau, panama, russia, samoa, trinidad and tobago, the us virgin islands, and vanuatu. these jurisdictions have not fully met eu tax cooperation standards and are urged to improve their legal frameworks to meet these requirements. additionally, the eu council acknowledged progress in its "state of play" document. this document reflects ongoing eu cooperation with its international partners and the commitments of these countries to reform their legislation to adhere to agreed tax good governance standards. vietnam will be removed from the “state of play” document after meeting country-by-country reporting standards, while greenland, jordan, morocco, and montenegro committed to implementing reforms to their legislation. the next update of the list is scheduled for february 2026. the press release can be accessed here

on 12 september 2025, the bermuda monetary authority (bma) published a press release highlighting that bermuda's commercial (re)insurers paid an astounding us$1.1 trillion in claims globally from 2016 to 2024, with us$700 billion directed to u.s. policyholders. these claims addressed catastrophic events, property and casualty losses and life insurance benefits. the data also revealed a consistent annual increase in claims incurred from 2016 to 2024 with total claims incurred in 2024 representing 20 per cent of the cumulative total for the entire nine-year period. in 2024 alone, claims reached us$211 billion, underscoring the resilience of bermuda's (re)insurance market amidst challenges like natural disasters, economic volatility, and geopolitical turmoil. over the nine-year period, us$831 billion was paid to policyholders in the u.s., europe, and the uk, cementing bermuda's pivotal role in global risk management. the bma emphasised the market's strength, supported by regulation and innovation, ensuring policyholders' trust even during significant loss events. bma’s press release can be found here

on 23 october 2025, the cyprus bar association (cba) issued circular 18/2025 regarding the 19th package of sanctions imposed by the european commission against russia, informing its members on the sanctions targeting actions undermining ukraine's territorial integrity, sovereignty and independence. key points include: members of the cba are urged to review and integrate 19th sanctions package (eu regulation 2025/2037, eu regulation 2025/2033, and eu regulation 2025/2041) into their due diligence processes, particularly in client acceptance policies and risk assessments. regular updates to the eu sanctions regime are expected. routine monitoring and implementation is required to ensure compliance. for further details, members are advised to consult the official eu publications. the cyprus bar association circular can be accessed here (in greek)

on 23 october 2025, the european union has adopted its 19th package of sanctions against russia, marking a significant escalation in its efforts to counter russia's ongoing aggression in ukraine. these measures target critical sectors of the russian economy, including energy, finance, and military industries, while also addressing circumvention tactics and third-party enablers. energy sector measures: a total ban on russian lng one of the most impactful measures is the ban on russian liquefied natural gas (lng) imports. this ban will take effect for long-term contracts starting january 2027 and within six months for short-term agreements. furthermore, the eu has eliminated exemptions for major russian energy companies, rosneft and gazprom neft, further tightening restrictions on oil and gas imports. the sanctions also target russia's "shadow fleet," with 117 additional vessels now banned from eu ports, bringing the total to 557. these ships, often used to bypass sanctions, will face restrictions on services and port access. additional sanctions are notably imposed across the shadow fleet value chain, including on litasco middle east dmcc, lukoil's prominent shadow fleet enabler based in the ua, as well as on maritime registries providing false flags to shadow fleet vessels. the port infrastructure ban enables the eu to list ports in third countries that are instrumental to the russian war effort. additional listings the 19th sanctions package contains 69 additional asset freeze listings. such listings include a russian energy company, a large russian company involved in gold production, a russian company managing the shadow fleet, and two chinese refineries and an oil trader facilitating trade with russia, among other legal and natural persons. financial measures: closing loopholes the eu has introduced sweeping financial restrictions, including: transaction bans on five russian banks prohibitions on russia's payment systems, such as mir and sbp. lists four financial institutions in belarus and kazakhstan that use the russian payments system. trade and military restrictions the sanctions expand export bans on dual-use items and advanced technologies, including metals and chemicals critical for weapon production. additional export bans cover products such as slats and ores, construction material and articles of rubber. individual listings targeting businesspersons and companies involved in russia’s military-industrial complex, as well as operators from the uae and china engaged in the production or supply of military and dual-use goods in russia. the eu has also listed 45 new entities involved in russia's military-industrial complex or in the circumvention of sanctions, including companies in china, india and thailand. measures targeting russia's special economic zones (sezs) these zones aim to attract foreign investment and serve as key drivers of economic growth and infrastructure development. to clearly signal that eu businesses should avoid involvement, the 19th sanctions package proposes a prohibition on entering into new contracts with any entity established in specific russian sezs. two of these sezs, alabuga and technopolis moscow, will be subject to a ban that applies also to existing contracts. humanitarian concerns: protecting ukrainian children in response to the forced deportation and assimilation of ukrainian children, the eu has listed 11 individuals involved in these activities. a new listing criterion has been introduced to streamline future sanctions against those responsible for such violations. diplomatic and service restrictions russian diplomats will now face stricter travel regulations within the eu, requiring prior notification and in some cases, authorisation. introduces service bans related to ai, high-performance computing, and tourism for russian entities. belarus the package reflects similar trade, financial and services‑related measures in the belarus sanctions regime consistent with past practice. five new listings related to the belarusian military‑industrial complex and the lukashenka regime have also been decided. as the eu continues to refine its sanctions framework, these measures underscore its commitment to supporting ukraine and upholding international law. by targeting key sectors and addressing circumvention tactics, the eu aims to encourage a resolution to the conflict while mitigating its broader impacts. the european commission’s press release can be accessed here and the european council’s here

the cayman islands monetary authority (cima) recently announced the withdrawal of the temporary allowance for operator letters in place of notarised affidavits for fund registration and licensing applications. this measure, introduced during the covid-19 pandemic, ceased on 15 october 2025. from this date, all applications under the mutual funds act (2025 revision) and private funds act (2025 revision) must include duly notarised affidavits, as per standard requirements. operator letters will no longer be accepted. industry participants are urged to ensure compliance with these requirements to avoid processing delays. cima’s notice can be accessed here

on 14 august 2025, the cyprus ministry of finance (mof) has formally determined the competent authorities which would be responsible to ensure compliance with regulation (eu) 2022/2554 on digital operational resilience for the financial sector (dora) on the basis of the regulatory administrative act 252/2025 (raa 252/2025). under the raa 252/2025, the relevant competent authorities are: a) the registrar of occupational retirement benefit funds responsible for the supervision of: occupational pension institutions b) the superintendent of insurance responsible for the supervision of: cypriot insurance and reinsurance undertakings insurance and reinsurance mediators who have cyprus as their member state cyprus mediators engaged in insurance mediation as a secondary activity c) the cyprus securities and exchange commission (cysec), responsible for the supervision of: cyprus investment firms (cifs) crypto-asset service providers (casps) licensed by cysec issuers of asset-referenced tokens (arts) licensed by cysec central securities depositories licensed by cysec central counterparties established in cyprus trading venues in cyprus cyprus alternative investment fund managers crowdfunding service providers licensed by cysec management companies licensed by cysec performance of the functions of the relevant competent authority as provided in article 19 of dora concerning central securities depositaries licensed or supervised by both cysec and the central bank of cyprus (cbc) d) the cbc responsible for the supervision of: credit institutions, including the ones providing crypto-asset services after notification to the cbc issuers of arts with reference to assets which are credit institutions trading venues of cyprus that are credit institutions payment institutions (pis), including exemptions as well as those authorised by cbc to provide crypto asset services or to issue arts. electronic money institutions (emis), including exemptions as well as emis providing crypto asset services following notification by cbc and arts that are emis. account information service providers central securities depositories licensed by cbc providing banking-type ancillary services performance of the functions of the relevant competent authority as provided in article 19 of the regulation, for entities jointly supervised with cysec these supervisory assignments ensure that every part of the financial sector in cyprus – from banks and insurers to pension funds, investment firms, and crypto providers – has a clear regulator overseeing its compliance with dora. the raa 252/2025 can be found (in greek) here

on 15 september 2025, the french (amf), austrian (fma), and italian (consob) financial authorities issued a joint letter and press release calling for critical adjustments to the mica regulation. these proposals aim to address certain gaps which the regulators state they have identified in the current framework. the press release highlights the lessons learned from the first months of mica’s implementation, with the authorities noting significant differences in how national authorities supervise crypto-asset service providers (casps) and crypto markets in general. key proposals: centralised supervision by esma for significant casps the authorities advocate for direct esma oversight of significant crypto-asset service providers (casps). this would prevent regulatory fragmentation, ensure uniform rule enforcement and reduce supervision costs, drawing inspiration from the supervisory models for significant stablecoin (emts / arts) issuers. mandatory execution of orders by eu casps on mica-compliant trading platforms or equivalent the authorities cite weaknesses of the “reverse solicitation” exemption in crypto-asset activities and the potential for non-eu platforms indirectly serving eu investors at a large scale. in addition, delegation of core functions to third-country entities should meet strict criteria, including equivalent legislation or direct esma supervision, to prevent regulatory arbitrage. mandatory cybersecurity audits under mica the authorities propose that an express requirement for casps to undergo mandatory, independent cybersecurity audits before authorisation and at regular intervals is introduced at the mica regulation level. this would address gaps in licensing and supervisory requirements by eu competent authorities, where divergent approaches have been adopted on this issue given that mica regulation does not currently include such an express requirement. centralised token offerings / listings process through esma those regulators claim that centralising token offering filings under esma would simplify processes, reduce administrative burdens, and ensure consistent application of rules across eu member states, avoiding market fragmentation. again, these regulators claim that these proposals align with international recommendations from the financial stability board (fsb) and the international organisation of securities commissions (iosco). the joint letter can be found here and the press release here

on 29 september 2025, the bermuda monetary authority (bma) published a letter to stakeholders responding to the public consultation paper entitled “proposed enhancements to public disclosure regime: public disclosure of assets and liabilities for commercial long-term insurers.” the bma has proposed updates to the public disclosure regime for bermuda-regulated commercial long-term insurers (excluding domestic insurers). key goals include improving transparency of asset disclosures and supporting informed decision-making for policyholders. key highlights: transparency vs. competitiveness: while stakeholders support transparency, concerns about revealing proprietary strategies were raised. the bma may allow modified disclosures in exceptional cases. granularity of data: detailed disclosures, including investment strategies, aim to enhance clarity. a summary sheet will simplify insights for general audiences. operational feasibility: proportionality will be considered, leveraging existing regulatory data to reduce burdens. duration metrics: effective duration will replace weighted average life for asset and liability disclosures. next steps include publishing draft rules and guidance to ensure compliance. the bma remains committed to stakeholder collaboration to finalise these enhancements. bma’s stakeholder letter can be found here

on 6 august 2025, bermuda hosted key digital finance leaders for two pivotal events: the launch of the bermuda stablecoin association (bsa) and a digital finance roundtable led by the ministry of finance. the digital finance roundtable, held at the cabinet office, brought together the bermuda monetary authority, global digital asset leaders, and local banking representatives. discussions focussed on advancing bermuda's digital finance ecosystem, addressing local banking challenges, and improving its global competitiveness. the bsa, launched by apex group and penrose partners, aims to establish industry standards for stablecoins through collaboration on compliance, technical standards, policy, and education. premier david burt emphasised bermuda's dedication to fostering a thriving digital economy, ensuring global competitiveness and empowering local businesses. these efforts solidify bermuda's commitment to regulated digital assets and stablecoin innovation. the bermuda government’s article can be found here.

on 11 july 2025, the european securities and markets authority (esma) issued a warning to investors about the risks associated with unregulated products offered by regulated crypto-asset service providers (casps). this "halo effect" can lead to confusion, as clients may mistakenly believe that all products and services offered by a regulated casp are protected under the markets in crypto-assets regulation (mica). guidance for casps: clearly communicate which entity is providing a product or service as well as the regulatory status of each product or service at every stage of the sales process and in all marketing materials and documentation. avoid using regulated status as a promotional tool for unregulated products. information on a casp’s website on unregulated activities should be clearly separated from the sections dealing with regulated activities. implement measures like pop-up disclaimers to ensure clients acknowledge the unregulated nature of certain products before proceeding. unregulated entities (whether in the same group as the casp or not) should not be able to offer services and/or products regulated or unauthorised under mica using the same interface. it is evident that the guidance also seeks to target casps belonging to global crypto-exchange groups, where it is often the case that a shared domain or interface is used for multiple entities to provide both services regulated under mica and unregulated services. esma urges investors to stay vigilant and be aware that protections under mica, such as conflict management, asset safeguarding and complaint handling, do not apply to unregulated products or services. esma’s new release can be found here and the statement here

on 4 september 2025, the court of justice of the european union (ecj) issued a pivotal judgment in case c-726/23 (sc arcomet towercranes srl v direcţia generală regională a finanţelor publice bucureşti, administraţia fiscală pentru contribuabili mijlocii bucureşti), addressing the vat implications of transfer pricing (tp) adjustments within multinational groups. this decision clarifies the vat treatment of intra-group transactions and the evidentiary requirements for vat deductions. key findings transfer pricing adjustments as vat-taxable services: the ecj ruled that remuneration calculated under the oecd’s transfer pricing guidelines, such as the transactional net margin method (tnmm), constitutes consideration for services subject to vat. the court emphasised that: services must be identifiable and economically real, even if the remuneration is structured as a tp adjustment. a direct link must exist between the services provided and the remuneration received, regardless of variability in the payment structure. right to deduct input vat: tax authorities may require additional documentation beyond invoices to verify the existence and use of services for taxable transactions. such requirements must be necessary and proportionate, ensuring compliance with articles 168 and 178 of the vat directive. implications for businesses: this decision resolves longstanding uncertainty regarding the vat treatment of tp adjustments. it underscores the importance of: properly documenting intra-group transactions to demonstrate their taxable nature. ensuring contracts clearly define the scope of services and remuneration mechanisms. businesses should review their transfer pricing and vat compliance frameworks to align with this ruling and mitigate potential risks. the ecj’s decision can be found here and here

cyprus has transposed the corporate sustainability reporting directive (csrd) into national law, marking a significant step towards enhanced corporate transparency and sustainability. the amendments to the companies law, among others, were published in the official gazette on 29 july 2025. the implementation of the csrd introduces staggered compliance dates for the different categories of companies to report information necessary to understand their sustainability impact, as well as their development, performance and position. the timeline for reporting is structured as follows: for the financial year commencing on 1 january 2025: reporting requirements will first apply to large-sized and public-interest entities already subject to the non-financial reporting directive (nfrd). for the financial year commencing on 1 january 2027: the scope expands to include all other large-sized companies and parent companies of large groups that were not previously covered. for the financial year commencing on 1 january 2028: the final date brings small and medium-sized enterprises (smes), small and non-complex institutions and designated insurance and reinsurance undertakings, listed on regulated markets into the reporting framework. the amendments to the companies law (only in greek) can be found here the non-financial reporting directive (directive 2014/95/eu) can be found here the "stop-the-clock" directive (directive eu 2025/794 can be found here

on 3 october 2025, the luxembourg government introduced draft bill no. 8628 to transpose aifmd ii (directive (eu) 2024/927) into national law. the key takeaway: luxembourg is adopting aifmd ii “as is”, without adding extra national burdens (“no gold-plating”). for aifms, this provides certainty and keeps luxembourg attractive as europe’s hub for alternative funds. extended services for aifms authorised aifms have always been able to: manage individual portfolios under mandate (discretionary portfolio management) in addition to managing aifs. under aifmd ii, the list of additional services expands further. luxembourg aifms may now also: administer benchmarks (but not those used by their own aifs). provide credit servicing under the eu credit servicers directive (2021/2167), continue ancillary services such as investment advice, safekeeping of fund units, and order transmission. this broadened scope allows aifms to capture new business opportunities, particularly in private credit and related services. delegation, substance and distribution delegation is one of the most closely watched areas of aifmd ii. the directive strengthens requirements around: documenting and justifying delegation structures and reporting; and ensuring that an aifm retains sufficient resources and cannot be reduced to a letter-box entity. for luxembourg aifms, this is not new. the cssf has long required that aifms demonstrate real substance in luxembourg, with sufficient staff, senior management, and oversight functions. the draft bill essentially codifies eu rules that luxembourg was already applying in practice, meaning there is no additional burden for local managers. luxembourg clarification reflects the aifmd: distribution by mifid ii firms or insurers under idd, acting on their own behalf, is not treated as delegation. this distinction provides certainty for aifms relying on third-party distribution channels. loan origination regime aifmd ii introduces an eu-wide regime for loan-originating aifs, and luxembourg has adopted it without additional burdens. core requirements: borrower limits: no loans to the aifm, its staff, depositary, delegates, or group companies (unless at arm’s length). consumer carve-out: no loans to natural persons (consumers) under luxembourg law. concentration: max 20 per cent of aif capital per borrower (except financial institutions that on-lend). retention: aifs must retain 5 per cent of loans originated and sold. leverage caps: 175 per cent of nav (open-ended aifs) and 300 per cent of nav (closed-ended aifs). policies: robust credit assessment, monitoring, and default management procedures are required. transitional period: existing loan funds: 5 years from entry into force to comply. new loan funds: must comply immediately. why it matters luxembourg is europe’s top centre for private credit funds. by transposing aifmd ii on a one-to-one basis, luxembourg avoids creating additional hurdles. on delegation and substance, luxembourg aifms are already operating under these standards, so no change in practice is required. the only specific national carve-out is the explicit ban on consumer lending, aligned with luxembourg commercial and consumer law. bill of law no. 8628 can be found here (only in french)

on 23 september 2025, the cyprus securities and exchange commission (cysec) issued circular c728, drawing attention to the recent amendments to article 5h of regulation (eu) 833/2014. these changes significantly expand the scope of restrictive measures against russia in response to its military aggression against ukraine. key highlights: transaction ban: a full prohibition on transactions with legal persons, entities or bodies listed in annex xiv (previously only a swift ban), including any russian entities owned by more than 50 per cent of these listed entities. the list is expansive and includes 45 russian banks. licensing grounds: certain transactions may be authorised, such as: divestment or wind-down of business activities in russia, subject to approval by competent authorities. specific transactions with bank zenit for the necessary execution of pre-2025 contracts or for the payment of essential goods. exemptions: certain transactions are exempt from the prohibition, such as: activities necessary for diplomatic and consular functions. transactions by eu nationals residing in russia before 24 february 2022. compliance reminder: cysec urges all regulated entities, including cifs, aifms, ucits managers and casps, to review and update their compliance measures, emphasising that the scope of the article 5h prohibition was changed from a prohibition to provide specialised financial messaging services (swift) to a complete transaction ban. entities are also encouraged by cysec to consult the eu’s consolidated faqs for detailed guidance on article 5h and related provisions. these measures reflect the eu’s commitment to enforcing stricter sanctions and ensuring alignment across member states. regulated entities must act promptly to harmonise their procedures with the updated requirements. cysec’s circular c728 can be accessed here and article 5h of council regulation (eu) 833/2014 here eu’s consolidated faqs can be found here

the eu advocate general's opinion in case c-483/23 sheds light on the application of the eu’s core sanctions regime under regulation 269/2014 as regards assets placed in trusts by sanctioned individuals. the case was referred to the cjeu by the regional administrative court of lazio, italy and examines whether such assets placed into a trust can still be considered "owned, held, or controlled" by the settlor and therefore subject to freezing measures. the opinion follows on from, and is largely compatible with the recent jurisprudence in this area in the english high court in eurochem v société générale which we previously issued a blog about here. key insights of the ag opinion: substance over form: the opinion emphasises that the legal structure of a trust does not necessarily sever the settlor's ties to the assets. ownership and control must be assessed based on the trust's terms and the settlor's retained powers, such as the ability to revoke the trust, appoint trustees, or influence beneficiaries. trusts and circumvention risks: the ag noted that trusts can be used “relatively easily” to avoid the freezing of economic resources and funds, which has been acknowledged by the european commission, in its russia sanctions guidance, as potentially entailing circumvention. more broadly, the opinion aligns with the eu's broader policy goal of preventing russia sanctions evasion. it underscores the need to take a systematic and purposive approach and to look beyond formal legal arrangements to the underlying factual circumstances of each trust, including the reality of control, ensuring that sanctions are not circumvented through what can be complex legal structures. offshore trusts: the trust in question, governed by bermuda law, was perceived as being flexible in nature, a feature often promoted to ensure products are appropriately tailored for family offices, but with the consequence being here that the settlor had not appropriately severed ties to the assets for the purposes of the ownership and control test in sanctions law. despite amendments to exclude the settlor as a beneficiary, the ag noted that the settlor retained significant powers, such as being able to appoint trustees and protectors, which could indicate continued control over the assets. in a nod towards offshore trusts however, the ag did state that trusts for these purposes should be reviewed and assessed through the lens of the governing or “proper” law, not the trusts law where the trust undertook business, in italy. practical challenges: while the approach is consistent with eu sanctions policy objectives, it raises challenges for firms and institutions engaging in due diligence with trusts. without clear regulatory guidance, parties are likely to adopt overly cautious stances, increasing the risk of over-compliance and litigation. for more details, read the full case analysis here.

on 10 july 2025, the european securities and markets authority (esma) published a peer review on the malta financial services authority's (mfsa) authorisation of crypto asset service providers (casps) under the markets in crypto-assets regulation (mica). the review also identifies areas for improvement, including risk assessment and resolution of material issues during authorisation. a central observation of the review was the timing of the casp authorisation issued by the mfsa, ahead of other member states and that the mfsa’s assessment process should have been more thorough. in particular, the review provides that no evidence was found on the authorisation files that certain key matters were adequately assessed by the mfsa, which esma recommends that eu national competent authorities (ncas) focus on. these include: the casp’s business plan and adequacy of resources, approaches and systems to support the business’ growth potential conflicts of interest governance and intragroup arrangements risks relating to ict infrastructure, custody, the booking model used risks relating to web 3.0 services and decentralised products, including promotion or reliance on unregulated products or services certain aml/cft matters ncas are urged to integrate these recommendations into their practices to strengthen oversight in this high-risk sector. esma’s news release can be found here and the executive summary of the peer review here.