UBS fined $125mn over lax money laundering controls
The US Treasury imposed a record $125 million fine on UBS for failing to maintain adequate anti-money laundering controls, despite the bank having been sanctioned for similar shortcomings back in 2018. UBS Financial Services, the Swiss bank's US broker-dealer and wealth management arm, did not implement an effective anti-money laundering program and failed to properly review foreign currency transactions exceeding $10 billion, according to the US Treasury's Financial Crimes Enforcement Network (FinCEN).
FinCEN described the penalty as the largest ever levied against a broker-dealer for violations of the Bank Secrecy Act, and characterized UBS as a repeat offender given its earlier $14.5 million fine in 2018 for comparable conduct and its prior commitments to fix the failings. As part of its settlement with FinCEN, UBS acknowledged that it had willfully violated the Bank Secrecy Act, including by failing to properly monitor certain transactions and conduct adequate due diligence on high-risk customers. The overall penalty also incorporates fines from the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Financial Industry Regulatory Authority.
Landmark crypto bill stalls in US Senate despite $225mn spending push
A landmark digital assets bill has stalled in the Senate, even though the crypto industry has spent more than $225 million building its influence in Washington since the start of Donald Trump's second term in January 2025. Senators are set to leave Washington without voting on the Clarity Act, a first-of-its-kind regulatory framework for digital assets, following months of negotiations and repeated assurances from lawmakers.
The bill matters to the crypto sector because it would establish clear ground rules for firms operating in the space. Industry participants also hope the legislation will prevent the kind of regulatory crackdowns pursued by former Wall Street watchdog Gary Gensler under the Biden administration. The Trump administration has adopted a considerably more accommodating stance toward the industry, at a time when the president and his family maintain their own lucrative crypto ventures.
South African lawmakers propose draft rules on cross-border crypto transactions
South Africa's Treasury and central bank are advancing plans to regulate the use of cryptocurrency in cross-border transactions. The National Treasury and the South African Reserve Bank (SARB) released a draft rulebook requiring that crypto sent offshore be conducted through an authorized provider and reported to the central bank's Financial Surveillance Department (FinSurv).
The proposed framework would not grant crypto legal tender status, nor does it distinguish between different types of digital assets. The two bodies have invited public comment, with submissions due by September 30. These proposals build on earlier draft regulations issued by the National Treasury in April, which would require crypto holders to declare assets above a certain threshold and surrender private keys to enforcement officers upon request. South Africa's move reflects a broader global shift toward enforceable, cross-border crypto frameworks as authorities work to protect consumers and safeguard financial systems while still accommodating innovation.
