Stablecoin Compliance for Banks

Thailand is tightening checks on large cash deposits and major USDT transfers. 💰 5M baht+ deposits may require proof of funds 🔍 Stablecoin transfers face deeper AML review 🚫 No USDT ban — just stricter oversight 📅 Expected from Q4 2026 #Thailand #USDT #CryptoRegulation #AML https://lnkd.in/d_k5JHEg

Thailand is tightening oversight of large USDT transfers and cash deposits. 🇹🇭 Starting in Q4 2026, deposits of 5M baht ($150K+) will require proof of fund sources, while high-value stablecoin transfers face stricter AML scrutiny. The move targets hidden capital flows, not a USDT ban. 💵🔍 https://lnkd.in/dktGff9V

OCC has proposed treating permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act. Comment period closes July 24. If that proposal moves forward, stablecoin operations are no longer a payments infrastructure conversation. They are an examination readiness conversation. For treasury teams holding payment stablecoins, this means: AML program documentation tied to on-chain transactions, transaction provenance traceable by counterparty, and sanctions screening logs that can survive regulatory review. Not general policy documentation. Transaction-level records. Most institutional stablecoin users built their treasury operations around the payment use case. The controls and books-and-records requirements of a BSA-regulated entity are a different layer, and most are not ready for it. The July 24 comment window is the time to understand what this actually requires operationally.

Key insights: The Office of the Comptroller of the Currency denied Wise’s application to charter a de novo national trust bank, citing deficiencies in the company’s Bank Secrecy Act, Anti-Money Laundering and Countering the Financing of Terrorism programs. What’s at stake: The decision marks the OCC’s first public denial of a fintech’s charter application following the approval of more than two dozen charter applications this year. Forward look: Wise said it intends to submit a new application for a national trust bank charter under a GENIUS Act framework.

Thailand Central Bank Starts Auditing USDT as Gray-Market Crackdown Grows Thailand’s central bank is intensifying oversight of stablecoin activity, aiming to reduce the use of digital assets in money laundering, illicit finance, and cash-linked “gray money.” The Bank of Thailand said it is working alongside the country’s Securities and Exchange Commission to audit high-volume stablecoin transfers, with a particular focus on USDT (USDT), cash movements, and currency exchange flows. The effort is part of a broader anti-financial-crime push that targets suspicious funds that may originate from scams and other criminal operations. Bank of Thailand Governor Vitai Ratanakorn told local media outlet The Nation that the changes are not meant to be

UK banks have rejected roughly £1 billion in crypto-related transactions. A parliamentary inquiry now wants them to explain why. The uncomfortable part: a fully licensed, FCA-registered exchange and an unregistered one selling on Telegram get the same "no thank you" from account underwriting, because neither was ever really assessed as an individual business. The category got excluded, not the risk. Wrote about the economics behind why banks do this, and why it might not survive scrutiny: https://lnkd.in/dJW3Apt7

📣 The regulation numbers in your UCITS policies no longer mean what they used to. The Central Bank reissued its UCITS rulebook on 7 July 2026. S.I. No. 316 of 2026 replaces the 2019 Regulations in full. Most of the rules survived intact. The numbering did not. Performance fees, for example, were Regulation 40. They are now Regulation 43, and Regulation 40 is methods of valuation. Better Regulation mapped all 146 provisions: 92 carried over, 43 amended, 7 removed, 6 new. Start with the liquidity management tools regime and the money market fund rules. 👀 See the map: https://lnkd.in/ee5hiNvc #UCITS #IrishFunds #FundGovernance #Compliance #RegTech

Stop treating stablecoins as an 'alternative asset.' In 2026, they are the primary settlement infrastructure for global banking. Most banks are asking the wrong question. They focus on custody—keeping assets safe in a vault. But custody is a commodity business with shrinking margins. The real strategic advantage lies in Infrastructure Integration: building the rails that allow for confidential, programmable settlement that satisfies both the corporate treasurer and the regulator. Look at the recent probes by Thailand’s Central Bank into USDT. They are targeting 'concealed ownership' and efforts to bypass domestic remittance channels. The winners will be the ones who implement 'Compliance-by-Design'—where KYC and privacy aren't at odds, but are linked through technologies like selective disclosure. Is your institution ready to move from holding assets to owning the rails?

The Central Bank's second Payments and E-Money Newsletter includes a call for action by electronic money institutions and payment institutions. The Central Bank wants firms to complete a detailed assessment of the impact of the narrower interpretation of 'electronic money' on their business models without delay and flags that it will step up its engagement with firms on this in the coming months. The Newsletter also highlights Central Bank expectations regarding material changes of business model and includes updates on the Consumer Protection Code 2025, the incoming EU AML/CFT package, authorisation trends for multi-authorisation applicants and key H2 2026 reporting dates. Our Financial Regulation team sets out what it means for payment institutions and electronic money institutions. https://lnkd.in/dhYyf_jh Contact: • Shane Kelleher - shane.kelleher@williamfry.com • Louise McNabola - louise.mcnabola@williamfry.com • Jamie Mac Uiginn - jamie.macuiginn@williamfry.com #WilliamFry #FinancialRegulation #FinTech #EMoney #CBI #CentralBank #Payments #AML #AMLA #MiCAR

Most compliance databases label a wallet only after an analyst confirms the exposure, often days after the activity happened. In that window, the wallet keeps transacting, and every counterparty it touches inherits exposure no static list will show yet. Crown enforces a zero-tolerance sanctions policy across its BRLV stablecoin. Zebec screens every payroll and card payment before it settles. Real-time exposure tracing is what makes both possible. See how real-time exposure tracing works → https://buff.ly/qpWrbi5