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Mandatory enhanced due diligence (EDD) is set to apply to any Russian connection under EU anti-money laundering/counter-terrorism financing (AML/CTF) law, signalling a structural shift in regulatory expectations.
, published on January 9, 2026 and entering into force on January 29, adds Russia to the EU list of high-risk third countries under AML law.
The designation follows a series of legislative actions and assessments conducted throughout 2025 and early 2026.
The process began with the adoption of , published on August 21, 2025, which introduced a review clause into the EU’s AML framework requiring the European Commission to conclude a review of any third countries whose membership in the Financial Action Task Force (FATF) has been suspended.
This category applied to Russia following its and, with the latest regulation, the country is now legally treated as a structural AML/CTF risk, regardless of its FATF greylist or blacklist status, UK classification or existing sanctions controls.
The immediate compliance consequence is clear: mandatory EDD applies to any Russian connection, leaving firms no discretion to apply lighter-touch measures based on customer type, transaction volume or legacy status.
The adoption of the euro will bring regulatory scrutiny, dual-currency obligations and new operational risks for banks and payments firms, requiring proactive monitoring, reporting and customer engagement.
On January 1, 2026, Bulgaria became the 21st country to join the eurozone, with the aim of strengthening its economy and boosting growth.
For those operating in the financial sector, this development is expected to support smoother cross-border payments within the eurozone. It will also benefit Bulgarian banks, which will gain access to European Central Bank (ECB) support in the event of a crisis.
During and prior to 2025, in preparation for joining the euro, Bulgaria implemented several measures to demonstrate its readiness, including meeting the and ensuring that its legislation is compatible with the requirements of the and the and of the ECB.
On July 8, 2025 the Council of the EU the following legal acts:
These acts confirmed the Council of the EU’s formal approval of Bulgaria’s accession to the euro area on January 1, 2026 and determined a Bulgarian lev conversion rate of 1.95583 per euro.
A court ruling and a lawsuit seeking its protection mean the US Consumer Financial Protection Bureau (CFPB) remains active, although the trend for state-level regulation is creating challenges for payments firms.
On December 30, 2025, the District of Columbia federal district court the Trump administration to continue funding the agency at least until a February appeals hearing, rejecting claims that the CFPB is legally barred from requesting transfers from the Federal Reserve.
The court characterised the administration’s funding stance as an attempt to circumvent an injunction preventing efforts to wind down the agency.
This followed a for declaratory and injunctive relief filed on December 22 by 21 states and the District of Columbia. Their attorneys general sought to halt what they described as unlawful defunding of the bureau, arguing that the CFPB’s statutory obligations, notably collection and sharing of consumer complaint data, cannot simply be suspended.
Under the second Trump administration, the role of the CFPB has diminished significantly. The agency has dismissed or wound down several legacy enforcement actions, from aggressive buy now, pay later (BNPL) oversight and multiple advisory opinions and interpretive rules issued under prior leadership.
These actions do not repeal existing law, but they materially reduce enforcement momentum.
There has been some continued activity at the bureau, with the open banking framework still under . However, to “larger participant” supervision thresholds could reduce CFPB oversight coverage across several non-bank markets.
The attempts by the administration to cut off the CFPB’s funding are shaping the pace and scope of all this activity. With the bureau signalling limits on its ability to draw new resources, capacity is being rationed across staffing, litigation and policymaking.
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