Governments and regulatory bodies worldwide continually adapt policies to address emerging challenges and foster economic resilience. From Nigeria’s recent measures to curb cryptocurrency speculation to Kenya’s initiatives aimed at restoring investor trust in corporate debt markets and the U.S. Treasury Department’s proposed anti-money laundering regulations, a spectrum of regulatory adjustments reflects the ongoing quest for balance between innovation and stability. Compliance Tracker provides an insightful exploration of diverse regulatory shifts and market reforms, shedding light on their motivations, implications, and ramifications in the ever-changing realm of global finance.
Nigeria restricts access to cryptocurrency websites, including Binance, OctaFX, and Coinbase, to curb currency speculation activities.
Nigeria has directed its telecommunications companies to restrict access to cryptocurrency firms’ websites, including Binance, OctaFX, and Coinbase, among others. The Central Bank of Nigeria issued this new restriction to slow down currency speculation activities in the country. Binance has stated that its platform is not for currency pricing and it is committed to a market-driven, fraud-free, and manipulation-free platform for its users. The Nigerian Communications Commission has asked telcos to block access to Binance and other crypto firms’ online platforms starting immediately. This move has caused an uproar among Nigerians, who are complaining about Binance’s website not going through.
Kenya’s Capital Markets Authority has Implemented Stricter Measures to Boost Investor Confidence in Corporate Debt Market.
Kenyan companies looking to raise capital from the corporate debt market must now undergo mandatory credit rating and provide financial guarantees from recognized institutions such as banks and insurers. These requirements are part of the latest legislative changes aimed at restoring investor confidence in the market, which has been hit by a series of defaults and corporate failures over the past decade. The Capital Markets Authority (CMA) has issued new rules to cushion bondholders from financial losses arising from companies that end up defaulting or collapsing with investors’ funds. The minimum size of the bond issue has been fixed at KES 400 million, and companies seeking to issue bonds are required to procure the services of trustees to represent bondholders and appoint independent receiving banks to hold investor funds in trust accounts until the securities are credited to investors.
Financial Crimes Enforcement Network Proposes Stricter Anti-Money Laundering Regulations for Select Investment Advisers.
The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has proposed a new rule to impose certain anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements on Securities and Exchange Commission (SEC)-registered investment advisers and exempt reporting advisers. The proposed rule would apply to two types of investment advisers and would require them to establish a written AML/CFT program that is risk-based and designed to prevent the Covered IA from being used for illicit finance activities. Covered IAs would also be required to comply with reporting obligations related to currency transactions or suspicious activity and apply special standards of diligence to correspondent and private banking accounts involving foreign persons, among other things. The deadline to submit comments on the proposed rule is April 15, 2024.
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Last modified: March 26, 2024
