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CySEC Urges Regulated Firms To Help Shape New EU AML Rules

by THEFUTURE.TEAM

The Cyprus Securities and Exchange Commission (CySEC) is encouraging regulated entities to participate in two public consultations launched by the European Anti-Money Laundering Authority (AMLA), as the European Union moves to strengthen and harmonise its anti-money laundering framework.

Covering draft technical standards, the consultations will help shape how suspicious activity is reported and how non-financial businesses are assessed for money laundering and terrorist financing risks across the bloc. For regulated firms, the outcome will define future compliance obligations.

First Consultation Focuses On Suspicious Transaction Reporting

One consultation concerns the draft Implementing Technical Standards (ITS) under Article 69(3) of Regulation (EU) 2024/1624, which set out the format for reporting suspicious transactions and for submitting transaction records.

CySEC said the draft standards, supporting documents and consultation response form are available on AMLA’s website, with comments accepted until September 20, 2026.

AMLA will also host a public hearing on September 9 from 10:00 a.m. to 12:00 p.m. CEST.

Second Consultation Targets Non-Financial Sector Risk Assessment

Another consultation focuses on draft Regulatory Technical Standards (RTS) under Article 40(2) of Directive (EU) 2024/1640 (AMLD 6). The proposal introduces a common methodology for assessing the inherent and residual money laundering and terrorist financing risks of non-financial obliged entities.

Comments may be submitted until September 27, 2026, while a second public hearing is scheduled for September 10.

According to CySEC, the consultation is particularly relevant for non-financial entities under its supervision, including administrative service providers and crowdfunding service providers.

Toward A Harmonised EU Framework

According to AMLA, the proposed methodology would establish a consistent approach to assessing money laundering risks across all EU member states, allowing supervisors to evaluate comparable businesses using the same standards.

Feedback is also being sought on whether the reporting requirements are proportionate, practical and cost-effective, particularly for smaller organisations. Simplified reporting obligations are proposed for smaller entities, while supervisors would be able to rely on information already available to them instead of requesting duplicate data.

Implementation of the new framework is expected to begin in December 2028, with the first risk assessments under the harmonised system scheduled for 2029. Until then, national supervisors will continue applying their existing methodologies while preparing for the transition.

Businesses, supervisory authorities, financial intelligence units, industry bodies, academics and other stakeholders are encouraged by AMLA to submit feedback before the standards are finalised.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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