Country-Specific Compliance Standards

🔍 UBO Thresholds Across the World – How Much Ownership Triggers AML Scrutiny? 🌍 When it comes to identifying Ultimate Beneficial Owners (UBOs), different countries have different thresholds. While 25% is the global standard, some nations go stricter to prevent financial crime! Let’s break it down: 🔴 Strictest UBO Regulations (5-10%) – High Transparency Zones 📌 South Africa – 5% (Financial Intelligence Centre Act – FICA) 📌 Nigeria – 5% (Companies and Allied Matters Act – CAMA 2020) 📌 India – 10% (Prevention of Money Laundering Act – PMLA & SBO Rules) 📌 Argentina – 10% (Central Bank & Financial Information Unit – UIF) 🟠 Mid-Tier UBO Regulations (20%) – Stricter Compliance 📌 Malaysia – 20% (Companies Commission of Malaysia – CCM) 🟢 Standard Global UBO Threshold (25%) – Commonly Accepted Level The majority of countries follow a 25% threshold, aligning with FATF guidelines, EU AML directives, and US CTA laws. 📌 USA – 25% (Corporate Transparency Act – Reporting to FinCEN) 📌 European Union – 25% (4th & 5th AML Directives; 6th AMLD lowers to 15% for high-risk sectors) 📌 UK – 25% (Companies Act & People with Significant Control – PSC) 📌 UAE – 25% (AML Regulations for Compliance with AML/CFT) 📌 Singapore – 25% (ACRA Register – UBO details accessible to law enforcement) 📌 Hong Kong – 25% (Companies must maintain a register of significant controllers) 📌 Australia – 25% (AUSTRAC compliance for financial institutions) 📌 Netherlands – 25% (Dutch Act on UBO Registration – Reporting Required) 📌 France – 25% (AML laws define UBOs as those with 25% or more shares or voting rights) 📌 Germany – 25% (Transparency Register Act – TraFinG) 📌 Turkey – 25% (Corporate taxpayers must report UBOs to the Revenue Administration) 📌 Brazil – 25% (AML laws require financial institutions to identify UBOs) 📌 Canada – 25% (PCMLTFA – Proceeds of Crime & Terrorist Financing Act) 📌 Russia – 25% (UBO reporting required under AML laws) 📌 China – 25% (BOI filing required under PBOC & SAMR) 📌 Japan – 25% (Act on Prevention of Transfer of Criminal Proceeds) 📌 Switzerland – 25% (AML laws for financial compliance) 📌 Saudi Arabia – 25% (SAMA requires banks/financial institutions to report UBOs) 📌 New Zealand – 25% (AML/CFT Act mandates UBO disclosure) 📌 Indonesia – 25% (Financial Services Authority – OJK AML Laws) ⚖️ Why Not 50%? And Why Not 5% Globally? 🔹 50% would be too high – Making it easy for bad actors to structure entities below detection levels. 🔹 5-10% globally would be too low – Creating excessive compliance burdens and high costs for businesses without significantly improving risk mitigation. 🔹 25% is the practical sweet spot – Recognized by FATF, Basel Committee, Wolfsberg Group, and US Corporate Transparency Act (CTA).

ESG Reporting in Türkiye: Navigating the New Compliance Landscape Türkiye has taken a decisive step toward aligning its corporate governance with global sustainability benchmarks through the Türkiye Sustainability Reporting Standards (TSRS), effective January 1, 2024. Administered by the Public Oversight, Accounting and Auditing Standards Authority (KGK), these standards integrate internationally recognised frameworks such as IFRS S1 and S2, while allowing supplementary use of SASB and GRI guidelines for sector-specific disclosures. The regulations now mandate ESG transparency for listed entities on Borsa Istanbul, banks (excluding those under the Savings Deposit Insurance Fund), and firms exceeding thresholds in two of three criteria: TRY 500M total assets, TRY 1B annual net revenue, or 250+ employees. Key Compliance Requirements   1. Sector-Specific Frameworks: Financial institutions, insurance companies, and capital markets entities must adhere to TSRS 1 (general sustainability disclosures) and TSRS 2 (climate-related risks/opportunities). Climate disclosures now require granular data on physical and transition risks, though Scope 3 GHG emissions are exempt for the first two reporting periods. 2. Assurance Audits: Starting in 2026, independent audits of sustainability reports will ensure credibility, mirroring the EU’s Corporate Sustainability Reporting Directive (CSRD) rigour. 3. Threshold Exceedance Rules: Companies entering or exiting the TSRS scope are evaluated biennially, with consolidated financials and affiliate impacts factored into assessments. Strategic Advantages for Businesses   Firms prioritising ESG data integration will unlock investor confidence and competitive leverage. Transparent reporting on governance structures, climate resilience, and supply chain ethics aligns with global investor demands for material risk insights. For instance, TSRS 2’s emphasis on transition risks—such as adapting to a low-carbon economy—enables firms to preempt regulatory shifts and capitalise on green financing opportunities. Challenges & Forward Outlook   While SMEs and non-listed entities remain exempt, Türkiye’s alignment with ISSB standards signals a broader regulatory shift. Companies must now navigate dual obligations: the CMB’s Sustainability Principles Compliance Framework (voluntary “comply-or-explain” disclosures) and KGK’s mandatory TSRS. Proactive firms are leveraging transitional provisions, such as delayed comparative reporting, to refine data collection processes. As global ESG frameworks evolve, Türkiye’s integration of sector-tailored metrics and assurance mechanisms positions it as a regional leader in sustainable finance. Businesses adopting these standards early will not only mitigate compliance risks but also attract ESG-focused capital in a competitive market. #ESG #SustainabilityReporting #CorporateGovernance #TSRS #InvestorConfidence #SustainableFinance #BorsaIstanbul #GHGEmissions #SustainZone

𝐄𝐮𝐫𝐨𝐩𝐞𝐚𝐧 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤𝐬 Governance and compliance shape every decision — system design to vendor management — in EU projects. These frameworks shape how we deliver secure, resilient, and sustainable results: 1. 𝐍𝐈𝐒2 𝐃𝐢𝐫𝐞𝐜𝐭𝐢𝐯𝐞 – 𝐂𝐲𝐛𝐞𝐫𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐚𝐧𝐝 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 Puts additional requirements on essential sectors like energy, health, and transport. Covers incident reporting, governance, and supply chain resilience. Cybersecurity and risk controls need to be designed into every project from the start. 2. 𝐃𝐎𝐑𝐀 – 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞 𝐀𝐜𝐭 Covers financial institutions and ICT providers. Ensures systems can resist and recover from disruptions through testing, incident response, and business continuity arrangements. 3. 𝐄𝐒𝐆 & 𝐂𝐒𝐑𝐃 – 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲 Extend sustainability reporting along environmental, social, and governance axes. Projects must establish processes for collecting and attesting ESG data to meet EU disclosure obligations. 4. 𝐆𝐃𝐏𝐑 – 𝐃𝐚𝐭𝐚 𝐏𝐫𝐨𝐭𝐞𝐜𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐏𝐫𝐢𝐯𝐚𝐜𝐲 Decides how personal data is handled in organizations. Privacy-by-design principles, transparency over data usage, and lifecycle transparency need to be ensured by project managers. 5. 𝐈𝐒𝐎 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬 – 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞, 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲, 𝐚𝐧𝐝 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 ISO 27001/27701 (information security), ISO 9001 (quality), and ISO 20000 (IT service) offer frameworks for consistency, performance, and compliance. They enable teams to show control and readiness in audits. 6. 𝐄𝐮𝐫𝐨𝐩𝐞𝐚𝐧 𝐈𝐧𝐭𝐞𝐫𝐨𝐩𝐞𝐫𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤 (𝐄𝐈𝐅) Provides a roadmap to creating interoperable digital services across Member States. It enables public systems to exchange information securely and efficiently, in a manner that facilitates EU-wide collaboration. 7. 𝐂𝐨𝐧𝐧𝐞𝐜𝐭𝐢𝐧𝐠 𝐄𝐮𝐫𝐨𝐩𝐞 𝐅𝐚𝐜𝐢𝐥𝐢𝐭𝐲 (𝐂𝐄𝐅) Funds projects that expand digital connectivity and trusted services such as eID, eSignature, and cross-border data exchange. For project managers, this means managing multi-country standards and compliance alignment. 8. 𝐄𝐔 𝐃𝐚𝐭𝐚 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 – 𝐃𝐚𝐭𝐚-𝐃𝐫𝐢𝐯𝐞𝐧 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 Enables a single European data space founded on fairness, privacy, and innovation. It informs how we design analytics, AI platforms, and data-sharing agreements with transparency and accountability. Compliance isn't limitation — it's building digital ecosystems people can trust.

ESG Regulations Map 🌍 The latest Global Regulations Radar – 3rd Edition developed by ERM provides a snapshot of the fast-evolving ESG and EHS regulatory landscape, offering insight into global developments with growing relevance for multinational companies. The European Union remains the global benchmark. Its Packaging and Packaging Waste Regulation and Urban Wastewater Treatment Directive are pushing mandatory circularity, reuse targets, and polluter-pays models. These regulations will reshape operations for sectors from manufacturing to food and pharmaceuticals. At the same time, the EU Omnibus proposal introduces delays and simplifications to several flagship regulations, including CSRD, CSDDD, the EU Taxonomy, and CBAM. While the proposal aims to reduce administrative burden, it has raised concerns about weakening the EU’s leadership in sustainability and slowing momentum at a critical time. The United States is experiencing a regulatory reversal at the federal level. Key climate and disclosure policies have been rolled back, including EPA emissions rules and the SEC climate disclosure rule. Yet, states like California are advancing their own mandates, with SB 253 and SB 261 requiring emissions and climate risk disclosures as early as 2026. Mexico has introduced new Sustainability Information Standards with the first reporting wave set for 2026 using 2025 data. These standards represent a step toward greater alignment with international disclosure frameworks and will impact companies with operations or supply chains in the country. Japan is taking a leading role in the Asia-Pacific region. The release of the SSBJ sustainability disclosure standards, aligned with ISSB’s global frameworks, marks a significant step in improving ESG reporting. Voluntary adoption is already encouraged, with phased mandatory application expected based on company size. Kenya and the UAE are emerging as regional leaders. Kenya’s carbon market regulations establish rules for both voluntary and compliance markets. The UAE’s new federal law mandates GHG tracking, climate risk disclosures, and introduces a national carbon credit registry, reinforcing its Net Zero 2050 ambition. The timeline is accelerating. With multiple obligations coming into force between 2025 and 2027, companies must navigate a growing patchwork of requirements. Early alignment with leading standards and proactive adaptation of internal systems will be critical for legal compliance, investor confidence, and competitive positioning. #sustainability #sustainable #business #esg

Regulations for AML (Anti-Money Laundering) and KYC (Know Your Customer)vary by country but generally follow international guidelines set by organizations like the Financial Action Task Force (FATF). Below are key regulations across major jurisdictions: 1. Global Standards - FATF Recommendations– Set international AML/CFT (Countering the Financing of Terrorism) standards. -Basel Committee on Banking Supervision– Provides guidelines for risk management in financial institutions. 2. United States - Bank Secrecy Act (BSA) (1970)– Requires financial institutions to report suspicious activities to FinCEN (Financial Crimes Enforcement Network). - USA PATRIOT Act (2001)– Strengthened AML regulations, including enhanced due diligence (EDD). - Anti-Money Laundering Act (AMLA) (2020) – Expanded reporting requirements and increased penalties for non-compliance. 3. European Union (EU) - EU Anti-Money Laundering Directives (AMLD 1-6) – Introduced risk-based approaches, beneficial ownership registers, and enhanced transaction monitoring. - General Data Protection Regulation (GDPR) – Ensures customer data protection in KYC processes. 4. United Kingdom - Proceeds of Crime Act (POCA) (2002)– Criminalizes money laundering and mandates suspicious activity reporting. - Money Laundering Regulations (MLR) (2017, updated in 2022) – Implements EU AML directives post-Brexit. 5. Asia-Pacific - Singapore– The Monetary Authority of Singapore (MAS) enforces AML/KYC rules under the Financial Advisers Act. - Hong Kong– The Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) mandates customer due diligence (CDD). - India – The Prevention of Money Laundering Act (PMLA) is the primary AML law. 6. Middle East & Africa - UAE – The Financial Action Task Force (FATF) standards are implemented through the Central Bank’s AML/CFT regulations. - South Africa – The Financial Intelligence Centre Act (FICA) mandates KYC compliance. Key AML/KYC Requirements - Customer Due Diligence (CDD)– Identify and verify customers before establishing a business relationship. - Enhanced Due Diligence (EDD) – For high-risk customers, such as politically exposed persons (PEPs). - Suspicious Activity Reporting (SAR)– Mandatory reporting of suspicious transactions. - Transaction Monitoring– Continuous monitoring of customer transactions for unusual patterns. #amlkyc #antimoneylaundring #regulatory #fatf #fica #pmla #amlo #mlr #poca #amld #gdpr #sar #edd #cdd #peps