Compliance Radar Q3 2025

The Malta Financial Services Authority published findings from its four-year review covering inspections between 2020 and 2024, revealing compliance gaps among CFD brokers and investment services providers. The review targeted firms licensed under Malta’s Investment Services Act, focusing on EU Market Abuse Regulation compliance.

The MFSA identified deficiencies in suspicious trading activity monitoring, with several brokers lacking adequate detection systems and others failing to submit Suspicious Transaction and Order Reports despite active trading environments. Staff training emerged as a critical weakness, with many firms providing insufficient education that increased risks of overlooking market abuse signs. The authority conducted 474 investigations in 2023, with over 25% involving suspected unauthorized activity, resulting in €444,800 in administrative penalties.

Infographic Concept: Before/after comparison showing “2021: 600 promotions reviewed” versus “2024: 20,000 promotions reviewed” with visual elements representing AI technology, blocked websites (1,600+), removed apps (50+), and cancelled firm authorizations (1,500+).

The Financial Conduct Authority deployed advanced data analytics and artificial intelligence to scale enforcement capabilities, intervening in almost 20,000 financial promotions in 2024 compared to fewer than 600 in 2021. This 3,200% increase demonstrates how regulatory technology is transforming market supervision.

The regulator suspended or blocked over 1,600 unauthorized websites and removed more than 50 apps from major platforms including Google Play and the App Store. The FCA targeted unauthorized “finfluencers” on social media, interviewing 20 individuals under caution and issuing 38 alerts regarding illegal promotions across digital platforms.

Singapore’s financial authorities blocked suspected money mules from accessing banking services after victims lost $456 million in the first half of 2025. This action represents a shift from reactive investigations to proactive prevention strategies.

The Monetary Authority of Singapore coordinated with major banks to identify and restrict accounts linked to money laundering networks that facilitate online scams and cryptocurrency fraud. The initiative targets individuals who allow their bank accounts to be used for transferring illicit funds, effectively cutting off financial infrastructure that enables large-scale fraud operations.

The European Commission launched a Targeted Consultation on integrating EU capital markets, as part of its ambitious Savings and Investments Union strategy. This initiative aims to overcome persistent barriers like fragmented rules and supervisory divergence to build a seamless single market supporting cross-border investment. Enhanced coordination through ESMA and standardized post-trading systems are among the solutions under consideration.

 CySEC CFD Leverage Limits for Retail Investors (2025)

CySEC introduced a framework to enforce EU and UN sanctions across regulated firms, including CFD brokers, establishing the National Sanctions Implementation Unit under the Finance Ministry. This initiative operationalizes sanctions compliance extending beyond traditional banking into retail trading platforms.

The framework requires firms to enhance transaction monitoring controls, implement screening systems, and establish reporting procedures for suspicious activity that may violate international sanctions. CFD brokers must integrate sanctions screening into onboarding processes and ongoing client monitoring, adding compliance complexity while positioning Cyprus as aligned with EU-wide enforcement efforts.