As we approach 2025, the financial industry is gearing up for a series of major regulatory changes. These legislative updates are designed to enhance operational resilience, improve cybersecurity, and ensure greater transparency and compliance across the sector. Here’s a detailed look at the key regulations coming into force in 2025 and their implications for financial institutions.
Digital Operational Resilience Act (DORA)
Effective from January 17, 2025, DORA aims to harmonise operational resilience and cybersecurity standards across the EU. Financial institutions will need to enhance their ICT risk management frameworks, incident response plans, and third-party risk management processes to comply with the new standards.
Anti-Money Laundering Authority (AMLA) Regulation
Starting July 1, 2025, the AMLA Regulation will establish a European Anti-Money Laundering Authority. This new body will oversee high-risk financial entities, moving towards harmonising AML standards across the EU and improving cooperation and information-sharing between member states.
Payment Services Directive 3 (PSD3)
Expected to be introduced in 2025, PSD3 will replace PSD2, focusing on enhanced consumer protection and improved security. This directive will likely introduce stricter authentication processes and fraud prevention measures, extending to areas such as cryptocurrencies and decentralised finance.
Sustainable Finance Disclosure Regulation (SFDR) and EU Taxonomy
In 2025, the SFDR and EU Taxonomy will continue to evolve, requiring financial institutions to navigate complex sustainability reporting frameworks. These regulations aim to enhance transparency and combat greenwashing, ensuring that financial products meet stringent sustainability criteria.
How can ARQ Group help?
Financial institutions must start preparing now to ensure compliance with these upcoming legislative developments. This involves investing in technology, updating risk management frameworks, and training staff to handle new compliance requirements. By staying ahead of these changes, institutions can protect their reputation, maintain customer trust, and avoid potential penalties.
ARQ Group can assist your organisation in navigating these regulatory changes with tailored solutions and expert guidance. Contact us at info@arqgroup.com to learn more about how we can help.
