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A reinsurance contract is a specialized insurance contract where the reinsured (cedent) transfers part or all of the risk of the primary insurance policy to the reinsurer in exchange for a reinsurance premium. This mechanism allows insurance risks to be redistributed among market participants and forms a sustainable structure for the insurance portfolio of an international company. In COREDO practice, we often encounter entrepreneurs who confuse reinsurance with co-insurance or double insurance: it is important to understand that reinsurance is not duplication but rather the transfer of part of the liability to the reinsurer, which becomes the second level of protection for the business’s property interests.

Reinsurance Contract, Key Provisions

The key elements of any reinsurance contract are:

• the object of reinsurance (specific insurance risks or a portfolio of risks)
• insurance amount
• liability limit of the reinsurer
• conditions for the occurrence of an insured event
• procedure for insurance payment

It is important to competently determine the subject of the contract, as this will depend on which risks and to what extent will be transferred and which will remain with the reinsured. In COREDO practice, we recommend detailing the types of insurance risks, methods of their assessment, and the procedure for managing insurance losses to minimize disputes and ensure transparency in reinsurance transactions.

Rights and Obligations in the Reinsurance Contract

• The reinsured is obliged to disclose all relevant information about the insurance risks, comply with the terms of underwriting, and promptly pay the reinsurance premium.
• The reinsurer provides reinsurance protection, participates in insurance loss adjustment, pays compensation within the liability limit, and may require Due Diligence to be conducted on the reinsurance object.

Solutions developed at COREDO provide for a clear distribution of rights and obligations, which is especially important when working with international reinsurance markets and syndicates.

Types of Reinsurance, What It Is and How It Is Applied

The modern market offers a wide range of reinsurance programs that differ in the principle of risk distribution and the degree of involvement of the parties. For international companies, hybrid models that combine elements of facultative and obligatory reinsurance are particularly relevant.

Proportional and Non-Proportional Reinsurance, Distinction

In COREDO practice, we often recommend non-proportional schemes to protect against catastrophic risks and optimize capital during international expansion.

Reinsurance and Retrocession – What Is It?

This mechanism allows the formation of reinsurance pools and increasing reinsurance capacity, especially important for large transnational transactions. In one of COREDO’s projects in the EU: during the structuring of a reinsurance program for a holding with assets in several countries, retrocession allowed for a reduction in the total reinsurance premium and ensured resistance to cash losses even in the event of several insured events occurring simultaneously.

Reinsurance Contract: How to Conclude?

Concluding a reinsurance contract requires not only legal expertise but also an in-depth analysis of insurance risks, assessing the financial stability of the reinsurer, and compliance with international compliance standards.

Assessment of Reinsurance Risks

At COREDO, we apply comprehensive underwriting of reinsurance risks, including modeling scenarios of catastrophic losses and stress-testing the financial stability of a company. Effective management of reinsurance risks is built on the principles of risk management, transparency, and constant monitoring of reinsurance programs.

Mandatory and Additional Conditions of the Contract

COREDO’s practice confirms: clear detailing of contract conditions is the key to reducing regulatory and operational risks.

Reinsurance Premium and Commission – Calculation

The reinsurance commission is the remuneration for the reinsured for organizing and accompanying the transaction. In international practice, both fixed and floating rates are used, depending on the structure of the reinsurance program and the level of reinsurance protection. COREDO’s solutions allow optimizing settlements and automating payments using digital reinsurance platforms.

Reinsurance: Practice in the EU, Asia, and CIS

International companies face different approaches to reinsurance regulation, compliance requirements, and features of reinsurance markets. COREDO’s experience includes supporting clients in the EU, Asia, and the CIS, where their own standards and regulatory restrictions apply.

Reinsurance Regulation in the EU, Asia, and CIS

COREDO’s practice shows that competent preparation of documents and due diligence of the reinsurer is the key to successful registration and support of international transactions.

Reinsurance: AML, FATF, KYC

Modern compliance strategies require the integration of reinsurance into AML, FATF, and KYC procedures. Reinsurance becomes not only an insurance risk management tool but also an important part of the system for preventing financial crimes and sanction risks. COREDO’s team has implemented projects for the automation of compliance processes, which allowed clients to increase the transparency of reinsurance transactions and comply with international reporting standards.

Reinsurance in International Transactions

Reinsurance when registering a company in the EU or entering Asian markets becomes an integral part of the risk management strategy. In one of COREDO’s cases for a fintech startup in Singapore, reinsurance allowed for a reduction in capital cost and provided access to international investments, as well as successfully passed the licensing procedure with the local regulator.

Reinsurance for Risk Management

For modern international companies, reinsurance is not only protection against insurance losses but also a strategic tool for optimizing corporate finance, increasing investment attractiveness, and integrating into ESG strategies.

Impact of Reinsurance on Stability and Income

Reinsurance allows optimizing the structure of the insurance portfolio, reducing capital cost, and increasing ROI through risk redistribution and reduction of unforeseen losses. Solutions developed at COREDO have helped clients in the EU and Asia increase financial stability through the implementation of flexible reinsurance programs and automation of reinsurance reserve calculations.

In today’s sustainable development requirements, integrating reinsurance into corporate governance and implementing ESG strategies is becoming increasingly important.

Reinsurance in Corporate Governance and ESG

In COREDO practice, we observe increasing interest in reinsurance as part of corporate responsibility and long-term sustainable development strategy.

Reinsurance and Digital Solutions for Business

Such solutions provide transaction transparency, accelerate settlements, and allow reinsurance integration into the company’s overall IT architecture. COREDO’s team has implemented several projects for the implementation of digital solutions, enabling clients to minimize operational costs and increase the efficiency of managing reinsurance programs.

In the rapidly developing market, practical recommendations for increasing competitiveness are becoming relevant.

Practical Tips for Entrepreneurs

Practical tips for entrepreneurs will help understand the specifics of reinsurance in different markets worldwide. Differences between the EU, Asia, and CIS affect working conditions and company requirements, so it’s important to understand their key distinctions to choose the optimal business development strategy.

Reinsurance in the EU, Asia, and CIS: Comparison

How to Conclude an International Reinsurance Contract

• Conduct due diligence on the reinsurer (rating, reputation, licenses)
• Check compliance of the contract with international standards and jurisdiction requirements
• Assess risks and liability limits
• Set up compliance procedures (AML/KYC)
• Prepare a package of documents for contract conclusion
• Integrate reinsurance into the corporate risk management strategy

Practical Tips

• Integrate reinsurance into the corporate risk management system: use it to optimize capital and protect against cross-border risks.
• Choose a reinsurer based on rating, industry experience, and willingness to ensure transparent deals.
• Automate reinsurance processes using digital platforms: this will increase speed and reduce costs.
• Pay special attention to compliance: reinsurance should comply with AML, FATF, and KYC requirements, especially when operating in the EU and Asia.
• Regularly assess the effectiveness of reinsurance: analyze ROI, impact on capital cost, and financial stability.

Frequently Asked Questions and Key Takeaways

The reinsurance contract is not just a legal tool but a strategic resource for international business, allowing the management of insurance risks, optimization of corporate finances, and compliance with the strictest compliance requirements.
COREDO’s experience shows that competent integration of reinsurance into corporate governance and financial modeling structure ensures resistance to shocks, accelerates international expansion, and increases a company’s investment attractiveness.

If you want to get individual advice on choosing a reinsurance program or integrating reinsurance into the structure of your international company – the COREDO team is ready to share practical experience and offer the best solutions for your business.

In this article, I, Nikita Veremeev, founder of COREDO, will share practical recommendations, strategic ideas, and cases from our team’s experience so you can not only understand the key functions of a freight forwarder but also gain maximum benefit for your business. If you want to understand how modern forwarders help scale exports, implement digital tools and manage the complexities of international logistics: read to the end.

What is a freight forwarder in simple terms

What is a freight forwarder in simple terms? It’s not just a carrier but a specialist who organizes the entire cargo delivery process – from document preparation to choosing the optimal route and transport. Let’s delve further into what exactly a freight forwarder does and what their work involves.

Freight forwarder: what it is and what it does

The key responsibilities of a freight forwarder include:

• strategic planning of the supply chain;
• cargo consolidation and delivery route optimization;
• documentation preparation and verification;
• incident and claim management;
• ensuring compliance with international standards (compliance);
• quality control of logistics services.

The role of a forwarder in international logistics

Our experience at COREDO has shown: a proper choice of freight forwarder not only accelerates processes but also significantly reduces risks associated with delays, documentation errors, and unforeseen costs. In the context of increasing demands for transparency and risk management in logistics, a forwarder becomes the link between the manufacturer, carrier, and final client, ensuring a high level of customer experience in B2B logistics.

A detailed analysis of the functions of a forwarder will help understand why their participation is critical for effective logistics.

Functions of a freight forwarder in logistics

Logistics coordination and supply management

One of the main functions of a freight forwarder: coordination of the logistics chain, including the organization of multimodal transport (sea, rail, road, air), cargo consolidation, and delivery route optimization.

The forwarder also oversees supply management, which includes deadline monitoring, warehouse inventory management, and route adaptation for seasonal peaks or force majeure situations.

Customs documentation preparation for transportation

A freight forwarder takes on the preparation of customs documents, including export declarations, certificates of origin, transport documentation (CMR, Bill of Lading), and electronic data interchange (EDI).

The forwarder also ensures the accompaniment of international transportation, interacting with regulatory authorities and monitoring compliance in international transportation.

Logistics risks and cargo insurance

Risk management in logistics is one of the key competencies of a modern freight forwarder. This includes cargo insurance, incident and claim management, as well as the development of SLA (Service Level Agreement), defining parameters of responsibility and service quality.

Digitization tools in freight forwarding

Digitization tools in freight forwarding allow companies to automate key transportation stages, enhance process transparency, and respond quickly to changes. Modern digital solutions, such as TMS systems, cargo monitoring, and electronic document interchange: are becoming an integral part of effective logistics and help better control all supply chains.

Cargo tracking: digital tools

Modern freight forwarders actively implement digital tools: track & trace systems, IT system integration, electronic data interchange (EDI), IoT solutions for cargo condition monitoring.

Digital freight forwarding is becoming the standard for international logistics, providing not only cargo tracking automation but also enhancing the quality of customer experience in the B2B segment.

Logistics outsourcing and planning

Outsourcing logistics processes through a freight forwarder allows companies to focus on key business tasks, entrusting expertise in supply chain strategic planning to professionals.

The introduction of KPIs in logistics and regular process audits help maintain a high level of service and transparency.

As a result of such comprehensive work, your logistics processes become not only more efficient but also more transparent and manageable: which is directly related to the standards and compliance requirements in key markets of the EU, Asia, and Africa.

Freight forwarder: standards and compliance in the EU, Asia, Africa

In modern conditions, the activity of a freight forwarder requires strict adherence to standards and compliance both in the EU and in Asia and Africa. The necessity of international certification becomes a key factor for market expansion, increasing client trust, and long-term development of forwarding companies.

International standards certification

A freight forwarder is obliged to ensure compliance with international standards (compliance), including certification and licensing of forwarders, managing contracts with carriers, and controlling the quality of logistics services.
In the EU, certification according to FIATA and ISO standards is mandatory, as well as the presence of licenses for certain types of transportation. In Asia and Africa, requirements may vary, requiring a deep understanding of local regulatory features.
COREDO accompanies clients at all stages: from selecting transport service providers to checking compliance in international transportation.

Regional features of the EU, Asia, and Africa

In the EU, there is a high level of digitization and strict compliance standards, in Asia: emphasis on multimodal transport and flexibility, in Africa – the high role of the human factor and limited digitization.
The COREDO team analyzes local requirements and helps clients choose experienced forwarders, minimizing risks, and providing support for international transportation.

How to choose a freight forwarder

Choosing a freight forwarder is a key step in ensuring sustainable and efficient international transportation. The right decision not only depends on timely delivery of goods but also on the overall safety and economic feasibility of the entire logistics. Let’s understand how to choose a reliable freight forwarder and what to pay special attention to.

How to choose a reliable freight forwarder

When choosing a freight forwarder for international delivery, I recommend paying attention to the following parameters:

• experience in target regions (EU, Asia, Africa);
• availability of modern digital tools and track & trace systems;
• transparency of SLA (Service Level Agreement) and clear KPIs in logistics;
• confirmed compliance with international standards and possession of licenses;
• level of customer experience in B2B logistics.

An effective choice of a freight forwarder becomes especially significant when considering its role in various stages of the logistics chain.

Freight forwarder in the logistics chain

Effective integration of a freight forwarder into an existing logistics chain requires:

• integration of IT systems (ERP, EDI, track & trace);
• automation of interaction with transport service providers;
• change management and staff training for new processes.

Freight forwarding market trends 2025

Innovative technologies for sustainable development

Digital freight forwarding, implementation of IoT and artificial intelligence, and the development of sustainable logistics are becoming key market trends.

The implementation of digital tools for freight forwarders allows not only enhancing transparency but also meeting new market and regulator requirements.

How to choose a freight forwarder for business

A freight forwarder becomes a catalyst for scaling export operations, accelerating entry into new markets by optimizing logistics costs, managing warehouse inventories, and adapting to seasonal peaks.

Competent strategic planning and ROI calculation when outsourcing logistics through a freight forwarder become the key to successful expansion.

Conclusions and recommendations for business

• A freight forwarder: is not just a forwarder, but a strategic partner ensuring coordination of the logistics chain, risk management, compliance, and the implementation of digital solutions.
• To minimize risks and increase efficiency, choose a forwarder with confirmed expertise, modern IT solutions, and transparent SLA.
• The integration of a freight forwarder in supply chain management allows optimizing logistics costs, improving service levels, and accelerating entry into new markets.
• Use a checklist when choosing a partner: experience, licenses, digital tools, process transparency, flexibility, and readiness to work in target regions.

Checklist for choosing a freight forwarder:

• Verified experience in your industry and region
• The availability of digital platforms for track & trace and electronic document interchange
• Certification and licenses, compliance with international standards
• Transparent SLA and clear KPIs
• Flexibility in organizing multimodal transportation
• Reputation and recommendations on the market
• Willingness to integrate with your IT systems
• Comprehensive approach to risk management and cargo insurance

Why do even experienced entrepreneurs and financial directors make mistakes at this stage? Often, due to underestimating the complexity of compliance, the specifics of regional registries, AML (Anti-Money Laundering) and KYC procedures, as well as the lack of a transparent risk management system. How to avoid these pitfalls? How to ensure legal business support and minimize reputational and financial risks while entering foreign markets?

Foreign Counterparty Check

Collecting Information about the Company for Analysis

The first step is gathering and verifying basic information through international company registries (Company Registry), electronic catalogs (Europages, Open Ownership), and chambers of commerce. At this stage, it is important to obtain:

• Certificate of Incorporation, Extract from Company Registry;
• Articles of Association;
• Information about directors, shareholders, registration address, and actual location.

The solution developed at COREDO involves the use of both official state registries and open public sources of information for preliminary data verification. It is important to request a notarized translation if the documents are in an irrelevant language.

Beneficiaries and Company Structure Check

The next step is analyzing the corporate structure of a foreign company and identifying the ultimate beneficial owners (Ultimate Beneficial Owners, UBO). This is critical for compliance with international AML standards and preventing risks associated with hidden owners or offshore structures.

The COREDO team has implemented projects where Orbis, Dun & Bradstreet, Open Ownership databases, and local court databases are used to verify the company’s beneficiaries. Special attention is given to:

• Transparency of the corporate structure;
• Verifying for nominee directors and shareholders;
• Verification of company representatives’ authority.

For complex cases, for example, when working with Asian or offshore jurisdictions – we recommend using international databases and specialized services to identify hidden beneficiaries and track ownership structure changes.

How to Assess a Company’s Financial Stability

Practical tools:

• Request audited financial statements for the last 2-3 years;
• Check credit rating through Dun & Bradstreet, Orbis;
• Analyze transactional activity and payment discipline;
• Assess business reputation through reviews and ratings in international databases.

Particular attention is paid to transactional monitoring and financial compliance analysis: this helps to identify anomalies related to money laundering or corporate fraud.

For a comprehensive picture of reliability, it is also important to check court disputes and current debt obligations.

Checking Court Disputes and Debts

Legal checks of foreign companies and analysis of litigation history are mandatory steps for assessing reputational risk and the legal cleanliness of a transaction. COREDO’s solutions include:

• Monitoring court databases by the place of company registration;
• Checking for debts and fines;
• Analysis of anti-corruption audits and media mentions;
• Assessing business reputation through international databases and public sources.

Checking for Sanctions and Restrictions

Checking a foreign company for sanctions and restrictions: a key element of AML support and financial compliance. International sanctions lists (OFAC, EU Sanctions, UN Sanctions) and local databases are used.

COREDO’s practice confirms: to minimize risks, it is important not only to check the company but also all its beneficiaries and affiliated persons for inclusion in sanctions lists. Moreover, it is necessary to ensure that all licenses and permits are in place, especially when it comes to financial, crypto, or payment services.

Foreign Company Verification: Europe, Asia, Africa

Regional specifics require adapting approaches to counterpart verification. The solution developed by COREDO considers the peculiarities of the legal environment, registry availability, and transparency level in Europe, Asia, and Africa.

Company Verification in Europe

Europe has a developed Company Registry system and unified KYC and AML standards, enshrined in EU directives. For verifying a counterparty in Europe, the following are used:

• Official registries (e.g., Czech Commercial Register, UK Companies House, Estonian e-Business Register);
• European databases (Orbis, Open Ownership, Europages);
• License and permit verification services.

Company Verification in Asia

Verifying a partner in Asia requires accounting for regional features of corporate law and specifics of local registries. In Asian countries (Singapore, Hong Kong, UAE), closed corporate structures are often used, and access to beneficiary information may be restricted.

COREDO’s team has implemented projects where comprehensive verification of a foreign counterparty in Asian countries applied:

• Local Company Registry and specialized databases;
• Verification of licenses and permits through official regulators (e.g., Monetary Authority of Singapore);
• Analysis of corporate structure and identification of hidden beneficiaries using international services.

Special attention is paid to checking the legal cleanliness of transactions and analyzing risks associated with regional compliance features.

Company Check in Africa

Checking a company in Africa is associated with limited accessibility of public registries and a high proportion of offshore jurisdictions. The COREDO solution includes:

• Using African registries and local chambers of commerce;
• Checking business activity and tax discipline through open sources and international databases;
• Risk analysis of offshore structures and compliance features.

Foreign Counterparty Verification Tools

Effective verification of a foreign partner is impossible without the use of modern tools and services, ensuring access to up-to-date information and international compliance standards.

What are International Databases?

• Check registration and status of the company;
• Assess the transparency of the corporate structure;
• Get information about beneficiaries and business activities.

In COREDO’s practice, Open Ownership and Orbis services are especially in demand for verifying corporate connections and history of ownership structure changes.

Website Check Services: Paid and Free

For checking court disputes, financial stability, and credit history, both paid and free services are used:

COREDO’s solution involves integrating multiple sources to obtain an objective picture and minimize verification errors.

Documents for Verification

• Certificate of Incorporation, Extract from Registry;
• Articles of Association;
• List of directors and shareholders;
• Documents confirming representatives’ authority;
• Financial statements for the last years;
• Licenses and permits;
• Certificates of no debts and legal disputes.

If necessary, notarized translation of documents and legalization for use in another jurisdiction.

AML and Legal Support in International Business Registration

AML Requirements: How to Comply?

To comply with international AML standards it is necessary to:

• Implement an internal control system and regular transaction monitoring;
• Conduct beneficiary identification and verification (KYC);
• Check the company and affiliated individuals against international sanctions lists (OFAC, EU Sanctions);
• Conduct regular anti-corruption audits and analyze funding sources.

COREDO’s solution includes the development of individual AML policies and client support at all verification stages.

Risk Verification in Business Processes

Integrating foreign counterpart verification into the company’s risk management strategy allows:

• Increase partnership’s information security;
• Minimize reputational and financial losses;
• Ensure long-term business sustainability.

Mistakes in Foreign Partner Verification

Common mistakes in checking a foreign partner:

• Focusing only on official documents without analyzing court disputes and reputation;
• Ignoring the verification of beneficiaries and corporate structure;
• Insufficient attention to AML requirements and sanctions restrictions;
• Lack of regular monitoring and information updates.

How to Check a Foreign Partner for Business

Foreign Partner Verification – Checklist

Choosing Services and Documents

• Use a combination of international and local registries for maximum information completeness.
• Request originals and notarized copies of documents.
• Implement regular monitoring of corporate structure and sanctions list changes.
• Ensure verification integration into business processes through automation and staff training.

Foreign Partner Verification, FAQ

How to verify the authority of representatives of a foreign company?
Request Articles of Association and powers of attorney, and check information in Company Registry and Open Ownership.

What documents to request from a foreign company for reliability verification?
Registry extract, Articles of Association, list of directors and shareholders, financial statements, licenses, certificates of no debts and legal disputes.

How to verify the registration address and actual location?
Cross-check data from official registries with the actual office information, use electronic company catalogs and public sources.

What services to use for checking beneficiaries of a foreign company?
Orbis, Open Ownership, Dun & Bradstreet, local Company Registry.

How to check if a foreign company is under sanctions?
Use international sanctions lists (OFAC, EU Sanctions), and also local databases.

Comprehensive Verification for International Business Registration

Islamic finance and banking services represent a unique system based on Sharia principles, excluding riba (usury), which forms a distinct approach to financial operations and investments. The formation and development of Islamic finance have been formed over centuries, closely related to the history of Muslim societies and modern economic realities.

History of Islamic Finance

Decisions on the permissibility of financial products are made based on ijma (consensus of scholars) and fatwas (religious rulings), supervised by Islamic financial regulators and Sharia councils.

Islamic Finance: Development and Scale

The COREDO team has implemented projects for launching Islamic investment funds in the EU and supporting sukuk (Islamic bonds) transactions for corporate clients from the Czech Republic and the UK.

Islamic Finance for Business: Why Necessary?

Islamic finance is not only a religious feature but also a tool for enhancing social and ethical sustainability, integrating ESG principles, and accessing fast-growing markets in the Middle East and Southeast Asia. Halal investments enable companies to raise capital from new categories of investors, minimize reputational risks, and meet responsible business standards. COREDO’s experience shows that competent integration of Islamic financial instruments into a business model increases partner trust and opens access to new financing sources.

Principles of Islamic Finance

The principles of Islamic finance reflect Sharia requirements for fairness, transparency, and ethics in economic relations. These rules form a unique system where permissible and prohibited financial practices, such as riba and participation in risks, are strictly regulated.

Prohibition of Riba: Influence on Finance

Riba is a fundamental prohibition in Islamic finance. It is not only the refusal to charge and pay interest but also a fundamental change in the logic of financial relationships: income can only be earned through participation in real business, rather than passive capital provision. All Islamic financial instruments, from mudaraba (equity financing) to sukuk, are structured to eliminate riba and ensure a fair distribution of profits and losses.

Solutions developed at COREDO for European companies provide for a legal review of contracts and the structuring of Sharia-compliant transactions, allowing clients not only to meet Islamic law requirements but also to minimize tax and compliance risks.

Gharar and Maysir in Islamic Finance

For business, this means that derivatives, options, futures, and any deals with inherently uncertain outcomes are prohibited. In practice, COREDO has carried out a Sharia compliance audit for an investment fund in Estonia, with particular attention paid to eliminating gharar in documentation and excluding maysir from the investment policy.

Social Responsibility and Partnership

Fairness and partnership are integral elements of Islamic finance. Companies are obliged to uphold social responsibility, maintain transparency, and avoid investments in prohibited sectors (alcohol, gambling, weapons). Islamic corporate governance and ESG integration are becoming standards for international companies working with Islamic banks and funds. COREDO’s practice confirms that the implementation of Islamic corporate governance principles contributes to long-term sustainability and reduces regulatory risks.

Islamic Financial Products for Business

Mudaraba and Musharaka: Differences and Essence

Mudaraba is equity financing where one party provides capital, and the other manages the project, with profits shared in a pre-agreed proportion. Musharaka is a partnership where all participants contribute and jointly manage the business. These instruments are particularly sought after for financing startups and investment projects in the EU and Asia. COREDO has demonstrated that mudaraba minimizes risks for the investor, while musharaka provides flexibility in business scaling.

Leasing or Trade Financing: Ijarah, Murabaha

Both instruments are actively used for financing equipment, real estate, and working capital. COREDO’s solutions for clients in Singapore and Dubai include comprehensive legal expertise and transaction support for ijarah and murabaha, allowing our clients to effectively manage assets and liquidity.

Sukuk and Islamic Investment Funds

Sukuk are Islamic bonds backed by real assets, where income is earned not from interest but from a share in the profit from using the asset. Islamic investment funds offer Sharia-compliant collective investment tools. The COREDO team has supported the issuance of sukuk for a technology company in the UK, ensuring not only compliance with AAOIFI standards but also transparency for investors.

Thus, Islamic financial instruments encompass not only investments but also Sharia-compliant insurance.

What is Sharia Insurance?

For international companies, takaful becomes an effective tool for asset protection and risk management. COREDO’s practice includes Sharia compliance audits of insurance products and the implementation of takaful for corporate clients in the EU and Asia.

Sharia Compliance in Islamic Finance

Sharia compliance in Islamic finance is a control and assessment system ensuring that all financial products and operations comply with Islamic law requirements. This approach requires not only understanding the peculiarities of the Islamic economy but also detailed structuring of each transaction following Sharia principles, highlighting the significance of the following aspects of the process.

Sharia Structuring of Deals

Structuring deals according to Sharia requires comprehensive auditing, Islamic Due Diligence, and obtaining a fatwa from an accredited Sharia council. For this, COREDO develops individual verification algorithms, including analysis of funding sources, legal review of contracts, and interaction with Islamic financial regulators.

Islamic Compliance and Auditing for Business

Compliance in Islamic finance is not only about meeting formal requirements but also about constant Sharia compliance auditing, appointing an Islamic compliance officer, and integrating AAOIFI standards into corporate governance. COREDO’s solutions allow companies to build transparent processes, reduce regulatory risks, and ensure partner and investor trust.

AAOIFI and IFSB Standards in Islamic Finance

Adherence to these standards is a mandatory condition for entering international markets and attracting investments. COREDO’s experience shows that integrating AAOIFI standards into a company’s corporate policy accelerates deal approval and enhances transparency.

Islamic Finance: Opportunities and Risks for Business

Islamic finance opens new opportunities for business, offering instruments based on principles of fairness and financial sustainability, while also posing specific risk management requirements. For companies considering Islamic banking, it is important to understand not only growth potential but also the specifics of risks arising from unique religious and legal constraints.

Islamic Banking for Business in the EU and Asia

Islamic banking for corporate clients in the EU and Asia combines traditional banking services with Sharia requirements: current accounts, financing, investment products, and asset management. The implementation of Islamic financial technologies (fintech) allows for compliance automation, accelerated Sharia compliance auditing, and operational transparency. In practice, COREDO has implemented projects integrating Islamic financial products for companies in the Czech Republic and Singapore, enabling clients to enter new markets and attract halal investments.

Successful Cases of Islamic Finance Worldwide

In Africa, COREDO’s practice involved structuring mudaraba transactions for agribusiness startups, ensuring sustainable development and business social responsibility.

Nevertheless, even with the successful implementation of Sharia standards and socially responsible strategies, companies face a number of unique challenges and risks, which will be discussed further.

Challenges and Risks for Companies

The implementation of Islamic finance comes with a range of challenges: compliance complexity, the need for constant auditing, a limited choice of Islamic banks in certain jurisdictions, as well as transparency and reporting requirements. Risk management in Islamic finance requires not only legal expertise but also a deep understanding of Sharia specifics. COREDO’s solutions include developing individual risk management strategies, tax planning, and supporting transactions at all stages.

Integration of Islamic Finance into Business

The integration of Islamic finance into business opens new opportunities for companies seeking honest and transparent financing based on principles of partnership and ethics. To effectively utilize these tools, it is important to understand how to choose an Islamic bank and suitable financial products.

How to Choose an Islamic Bank and Products

• Define strategic goals: market expansion, attracting halal investments, ESG transformation.
• Conduct Islamic due diligence of selected banks and financial products.
• Request a fatwa and Sharia compliance audit from accredited councils.
• Appoint an Islamic compliance officer and implement regular audit procedures.
• Integrate Islamic financial products (sukuk, mudaraba, ijarah) into the corporate structure.

How to Ensure Sharia Compliance?

• Develop internal compliance policies in Islamic finance.
• Implement regular Sharia compliance audits and AAOIFI-standard reporting.
• Ensure transaction transparency and exclude prohibited elements (riba, gharar, maysir).
• Leverage COREDO’s experience for deal structuring and regulator interaction.

ESG and Islamic Finance: Integration

• Include ESG criteria in investment policy and corporate governance.
• Develop a system for assessing the social and ethical sustainability of projects.
• Integrate Islamic ethics into investment decisions and asset management.
• Adopt COREDO’s best practices for integrating ESG principles into Islamic financial strategies.

Conclusions and Business Advice

Islamic finance is not only an alternative to traditional banking but also a strategic tool for international business. The principles of Islamic finance ensure transparency, fairness, and sustainability, while Islamic banks and financial products offer new opportunities for investment attraction and risk management. Practical steps, developed based on COREDO’s experience, enable companies to minimize legal and compliance risks, integrate ESG, and enter new markets. For successful transformation, it is crucial to ensure constant Sharia compliance audits, use international standards, and engage professional consultants.

Questions About Islamic Finance For Business

You need to conduct a Sharia compliance audit, obtain a fatwa, and integrate AAOIFI standards into corporate procedures.

Key risks include compliance complexity, a limited choice of banks, the need for constant auditing and transparency.

ROI is calculated based on the share of profit earned through partnership or investments, considering the absence of interest and prohibited income.

The integration of fairness, transparency, social responsibility, and regular Sharia compliance audits is required.

Use tools such as mudaraba, musharaka, sukuk, and integrate Islamic banking into the corporate structure, considering local and international standards.

The key standards are AAOIFI, IFSB. Regulators include central banks of Islamic countries, Sharia councils, and international organizations.

Include ESG criteria in investment decisions, corporate governance, and reporting, leveraging Islamic ethics and AAOIFI standards.

If you plan to implement Islamic finance into your business model or enter new markets, the COREDO team is ready to offer comprehensive support – from strategic planning to transaction facilitation and Sharia compliance auditing.

In 2023, according to the European Commission, more than 32% of international companies encountered legal difficulties at the very first stage of entering new markets, and direct losses from legal errors and unaccounted regulatory risks exceeded 21 billion euros. Even more telling: according to the World Bank Doing Business analysis, companies that ignore compliance and substance requirements are 2.7 times more likely to face account blocks or sanction restrictions.

In practice, the COREDO team has encountered dozens of cases where subtle nuances of corporate structuring, compliance, and tax planning became critical to the success or failure of an international project. In this article, I will thoroughly discuss how strategically and tactically to build legal protection for a business when entering new markets: from jurisdiction selection to supporting M&A deals and integrating ESG compliance. Read till the end: you will get answers to the most pressing questions and practical tools that will minimize legal risks and ensure the long-term sustainability of your business.

Legal Protection of Business in a New Market

Legal protection of business in a new market requires a careful approach to new rules and regulatory nuances faced by companies during international expansion. Understanding potential legal risks and a competent legal strategy are key to a successful entry and sustainable business development abroad.

Legal Risks in International Expansion

International expansion is always accompanied by legal turbulence: differences in regulations, sanction compliance, requirements for corporate transparency, and risks of being blacklisted by the EU and FATF. Common errors include:

• Ignoring local substance requirements (real presence), leading to tax claims and account blocks.
• Underestimating sanction restrictions, especially for companies from the CIS working with European and Asian markets.
• Lack of systematic legal risk management, for example, an opaque ownership structure or neglected KYC requirements.

Structuring and Asset Protection Abroad

Corporate structuring is the key to asset protection abroad and minimizing legal risks. The use of corporate holdings, SPV structures, and captive trading companies are not only tax optimization tools but also effective mechanisms for protecting trade secrets and managing conflicts of interest.

Where to Register a Business Abroad?

The question “Where to register a business abroad?” is relevant for entrepreneurs aiming for growth and global scaling of their business. Choosing a country for registration directly influences the tax burden, access to foreign markets, and the ability to integrate with international payment systems. Next, we will consider the main features of opening a company in the EU, Asia, and Africa.

Where to Open a Company in the EU, Asia, or Africa

The selection of jurisdiction for business determines not just the tax burden but also the level of compliance requirements, access to banking services, and risks of being included in sanction lists. Key criteria include:

• Tax rate and availability of Double Tax Treaties
• Substance requirements and corporate transparency
• Business rating (Doing Business) and jurisdiction reputation
• Banking compliance specifics and AML procedures

Below is a comparative table of popular jurisdictions:

Substance and Business Transparency Requirements

Since 2020, EU and Asian regulators have tightened substance requirements: the presence of an office, employees, management infrastructure. Non-compliance leads to loss of tax benefits and the risk of being deemed a shell company.

AML and Compliance: How to Avoid Account Blocking

Today, AML and compliance are key tools for protecting businesses from account blocking and sanctions. Proper implementation of AML procedures and adherence to KYC help international companies minimize risks associated with suspicious transactions and regulatory requirements.

AML and KYC for International Companies

Modern international AML/KYC standards require not only client and partner verification but also ongoing transaction monitoring, implementation of automated compliance procedures, and conducting due diligence on suppliers. KYC specifics in the EU, Asia, and Africa vary in depth of checks, but everywhere the key importance lies in:

• Documentary confirmation of source of funds
• Checks against sanction lists and PEP
• Compliance with automatic tax information exchange (CRS) requirements

In one of COREDO’s projects on supporting the registration of a payment company in Estonia, implementing a comprehensive KYC platform allowed not only passing the licensing review but also reducing the risk of account blocking in European banks.

How Not to Get Blacklisted by the EU and FATF

Getting blacklisted by the EU or FATF can paralyze international payments and lead to asset blocking. To minimize these risks, it is important to:

• Conduct regular background checks on all key counterparties
• Implement sanction compliance at the corporate policy level
• Use specialized IT solutions for transaction monitoring

International Tax Planning

International tax planning allows companies and investors to efficiently manage tax liabilities when entering foreign markets. A competent approach to ATP helps reduce the tax burden legally and take into account all potential risks.

Tax Risks When Entering Foreign Markets

Effective international tax planning is based on using Double Tax Treaties, correctly determining tax residence and considering CFC (Controlled Foreign Companies) rules. It is important to:

• Structure the holding in accordance with treaties between countries
• Ensure compliance with substance requirements
• Conduct regular legal audits of international operations

How to Prepare for CRS Reporting

CRS (Common Reporting Standard) obliges financial institutions to automatically transmit tax information about non-resident accounts. To prepare a company for CRS, it is necessary to:

• Ensure correct determination of all beneficiaries’ tax residence
• Implement corporate transparency procedures
• Collect and update the document package for banks and regulators

Opening Accounts and Integrating with Payment Systems

Opening accounts and integrating with payment systems are key stages for launching and scaling a business working with international transactions. This process includes both selecting a suitable bank or fintech platform and implementing modern payment services for customer convenience and company efficiency.

Opening Accounts in Foreign Banks and Fintech

Opening an account in a foreign bank is one of the most challenging procedures for international business. The requirements in the EU, Asia, and Africa differ in document volume, depth of KYC, and application review periods.

Currency Regulation and Operations

Currency legislation in the EU and Asia requires considering the specifics of cross-border payments, controlling the source of funds, and complying with operation limits. Key advice for managing currency risks:

• Use multi-currency accounts and payment platforms
• Implement automated systems for exchange rate and limit control
• Conduct regular legal audits of currency operations

Brand and Intellectual Property Protection

Brand and intellectual property protection: this is a strategic task for any business aiming to retain its competitive edge and market exclusivity. Trademark and patent registration legally secures rights to unique developments, preventing unauthorized use by third parties.

Trademark and Patent Registration Worldwide

Intellectual property protection when entering a market starts with registering trademarks and patents in target jurisdictions. Features include:

• In the EU – a unified registration system through EUIPO
• In Asia – national procedures, often with mandatory localization
• In Africa – regional organizations (ARIPO, OAPI)

Protection of Trade Secrets and Reputation

Tools for protecting trade secrets include NDA, internal information access policies, background checks for hiring and partner selection. In one of COREDO’s cases, implementing a system of reputational checks revealed hidden connections between top management of a partner company and offshore entities, preventing commercial information leaks and reputational losses.

M&A and Cross-Border Deal Support

M&A and cross-border deal support requires a deep understanding of legal, financial, and organizational aspects, especially for projects involving foreign jurisdictions. Quality legal support minimizes risks and ensures successful execution of even the most complex and large-scale deals.

Legal Support for M&A Abroad

M&A deals abroad require thorough due diligence, contract law analysis, sanction, and tax risk assessment. In COREDO’s practice, supporting M&A in the EU included:

• Checking ownership and beneficiary structures
• Analyzing corporate agreements
• Assessing compliance procedures in both jurisdictions

This prevented legal consequences of business scaling and ensured asset integration without blocks.

Unblocking Foreign Assets and Disputes

Unblocking foreign assets requires a comprehensive approach: from negotiations with banks and regulators to participating in international litigation. COREDO’s solutions include:

• Legal audit of blockage reasons
• Developing a strategy for interaction with regulators
• Supporting court proceedings in the EU and Asia

ESG Compliance for Legal Entities

ESG compliance for legal entities becomes a key element of responsible and sustainable business, reflecting the requirements for environmental, social, and governance aspects of a company’s activities. Implementing ESG standards helps organizations not only comply with regulatory norms but also create competitive advantages in the modern business environment.

ESG Standards in Company Strategy

ESG compliance (Environment, Social, and Governance standards) becomes a mandatory element for companies focused on long-term sustainability and investment appeal. Implementing ESG policies allows:

• Improving business rating
• Reducing legal and reputational risks
• Ensuring compliance with international investor requirements

ROI of Legal Support for Expansion

Evaluating the effectiveness of legal support can be done through the following ROI metrics:

• Reduction in the number of legal incidents
• Tax and fine savings
• Speed of market entry and payment system integration
• Resilience of corporate structure to external risks

Practical Advice for Entrepreneurs

• Conduct comprehensive due diligence on the market and partners
• Select a jurisdiction considering tax, compliance, and substance requirements
• Register trademarks and patents before market entry
• Implement automated compliance and AML/KYC procedures
• Regularly update documents for banks and regulators
• Conduct legal audits of international operations at least once a year
• Assesses reputational risks and integrate ESG standards

Choosing a legal partner is critical: pay attention to their experience in supporting international business, expertise in selected jurisdictions, and ability to work with complex structures.

Frequently Asked Questions from Entrepreneurs

Main Conclusions and Recommendations

• Legal protection of a business entering new markets is not just about registering a company abroad but a comprehensive system for managing legal, tax, and reputational risks.
• Critically important are: jurisdiction selection, compliance with substance and corporate transparency requirements, implementation of modern compliance and AML procedures.
• Regular legal audits, integration of ESG standards, and strategic foresight of risks ensure long-term sustainability and investment attractiveness of the business.
• To minimize legal risks and ensure successful international expansion, use checklists, automated tools, and consult experts with confirmed international business support experience.

Compliance and AML for Dealers: Regulation

AML and KYC: Standards and Requirements

Dealer Control and Reporting to the Regulator

Automation of Compliance in Fintech and Regtech

In this article, I will detail how EU sanctions and international regulations transform account opening and business licensing in Europe, the strategic and tactical mistakes companies often make, and the practical tools that really work to minimize risks. Drawing on COREDO’s practice, I will show how to build a sustainable business model even under sanction pressure. If you not only want to survive but scale your business in Europe in 2025, read on.

EU Sanctions for Business: Consequences 2025

Types of Sanctions for Entrepreneurs

Consequences of Sanctions for Business in Europe

Opening a Bank Account in Europe under Sanctions

New Banking Rules in the EU 2025

Beneficiary Verification and PEP KYC Standards

Account Blocking and Asset Freeze

Diversification and Multi-Banking for Business

Business Licensing in Europe – New Requirements

Licensing in the EU: Country Comparison 2025

How to Prepare a Business for Compliance

Moving on to the question of the license, let’s review the necessary documents and the procedure for obtaining them in 2025.

License: Documents and Procedure for Obtaining in 2025

How to Reduce Business Risks Due to Sanctions

Mistakes When Opening Accounts and Licensing

Compliance for Business in the EU: How to Prepare

Alternative Payment Tools 2025

How to Reduce the Risk of Blockage and Sanctions

Practical Tips for Entrepreneurs

Key Insights 2025

• EU sanctions and international restrictions radically change the approach to opening bank accounts and licensing business in Europe.
• Success depends on the transparency of the corporate structure, thorough document preparation, and continuous compliance.
• Diversification of banking partners and the use of alternative payment tools are key to business resilience.

How to Open an Account and Obtain a License

How to Choose a Jurisdiction and Bank

• Assess not only regulatory requirements but also the sanction resilience of the chosen jurisdiction.
• Priority should be given to countries with a developed system of financial monitoring and transparent KYC/AML procedures.
• Use multi-banking and alternative payment tools to diversify risks.

If you want to receive individual consultation on opening a bank account, business licensing in Europe, or minimizing sanction risks, the COREDO team is ready to offer comprehensive support at every stage. Assess your risks and gain a strategic advantage today – contact COREDO experts.

In 2025, the volume of global transactions using cryptocurrency exceeded $4 trillion for the first time, and over 60% of international companies made at least one transaction using digital assets. However, behind these impressive figures lies another reality: less than 10% of businesses have integrated cryptocurrency payments into their processes in a way that is truly legal, secure, and efficient. Why? Because the legalization of cryptocurrency as a means of payment is not only a technological issue but also a complex legal, tax, and compliance challenge where the stakes for businesses are particularly high.

I am convinced: now it is essential not just to follow trends, but to deeply understand where and how cryptocurrency becomes a legal and effective tool for business. In this article, I—and the COREDO team—share a practical guide to help you not only understand the nuances of regulation but also build a strategy for the legal and safe use of cryptocurrency as a means of payment. If you are looking for answers and solutions that really work—read to the end: here you will find the latest data, best practices, and proven strategies for your business.

Where cryptocurrency payments are allowed

The legalization of cryptocurrency as a means of payment is one of the key challenges for international companies in 2025. The world is divided into several camps: some jurisdictions officially allow cryptocurrency payments, while others limit them to the status of digital assets, and a third group prohibits them entirely. For businesses, this means the need to understand precisely where and how cryptocurrency can be used for company settlements and where it can only be used for investments or storage.

Cryptocurrency regulation in Europe

In recent years, the European Union has demonstrated a systematic approach to cryptocurrency regulation. With the adoption of the MiCA Regulation (Markets in Crypto-Assets Regulation) coming into effect in 2025, the EU has established the status of cryptocurrency as a digital asset but allowed its use for company settlements and payment for services in several countries, subject to strict compliance with AML/KYC standards and obtaining the necessary licenses.

In Estonia, the Czech Republic, Slovakia, and Cyprus, cryptocurrency is also permitted for corporate settlements but with several restrictions: mandatory Licensing, financial monitoring of crypto operations, regular reporting on cryptocurrency transactions. Solutions developed by COREDO allow clients not only to legally accept cryptocurrency payments in Europe but also to optimize taxation by using corporate wallets and smart contracts for settlements.

Cryptocurrency regulation in Asia

Asian markets are characterized by a dynamic approach to cryptocurrency regulation. Singapore remains one of the most progressive jurisdictions: cryptocurrency is legalized for business, and a crypto license is issued by the Monetary Authority of Singapore (MAS). COREDO’s practice confirms that obtaining a license in Singapore is possible within 3-6 months, provided there is full compliance with AML and KYC requirements and a financial monitoring system for crypto operations.

In Hong Kong, Japan, and South Korea, cryptocurrency is allowed for company settlements, but only with a license and after undergoing regular Due Diligence procedures. Implementing cryptocurrency payments in these countries requires integration with local cryptocurrency payment gateways and adherence to national cryptocompliance standards.

Cryptocurrency in Africa – market prospects

The African continent is becoming one of the fastest-growing markets for cryptocurrency settlements. In South Africa, Nigeria, Kenya, and Ghana, cryptocurrency is allowed for international company settlements but requires passing KYC and AML procedures. In South Africa, for example, companies are required to report cryptocurrency operations and integrate corporate wallets with national payment systems.

Countries where cryptocurrency is legalized in 2025

Requirements for cryptocurrency settlements

Cryptocurrency regulation in 2025 is built on three pillars: compliance with anti-money laundering (AML) laws, client identification (KYC), and business licensing. For businesses, this means setting up processes so that each cryptocurrency payment is transparent and all operations align with international FATF standards and national regulators’ requirements.

AML and KYC for corporate crypto payments

AML and KYC have become obligatory components of any cryptocurrency infrastructure. In the EU and Singapore, companies are required to conduct client identification, analyze the source of funds, and monitor suspicious transactions. COREDO’s practice has shown that implementing automated solutions for financial monitoring of crypto operations not only reduces the risk of account closures but also increases trust from banks and investors.

License for cryptocurrency operations

Obtaining a license for cryptocurrency activities is a crucial step for companies planning to work with cryptocurrency legally. In the EU and Asia, the principle applies: no license means no right to conduct cryptocurrency settlements between companies. In Singapore, for example, licensing takes 3 to 6 months and requires a local office, a local director, and an internal AML/KYC control system.

COREDO’s solution for clients includes selecting the optimal legal form, preparing a complete document package, and supporting all licensing stages: from application to integration with regulatory sandboxes.

Taxes and cryptocurrency reporting

Important nuance: in most European and Asian countries, companies must provide detailed reporting on all cryptocurrency transactions, including cross-border transfers, which requires implementing specialized financial monitoring solutions.

Business risks in cryptocurrency settlements

The key risks for businesses in cryptocurrency settlements include sanction restrictions, transaction block risks, exchange rate volatility, and financial monitoring complexity. COREDO’s practice confirms that minimizing risks is achieved by implementing risk management systems, conducting regular audits of cryptocurrency operations, and using reliable payment gateways with AML/KYC support.

Cryptocurrency for Business: How to Implement?

Integrating cryptocurrency payments into business processes: is not only a technological but also a strategic challenge. Successful integration requires taking into account the specifics of corporate settlements, choosing appropriate tools, and ensuring full compliance with compliance requirements.

Let’s consider the steps necessary to organize the acceptance of digital assets in the company.

How to accept cryptocurrency payments

In practice, implementing cryptocurrency payments for legal entities starts with choosing a jurisdiction and obtaining a license. Next is the integration of corporate wallets and payment gateways, setting up due diligence procedures, and staff training. COREDO’s solutions enable the integration of cryptocurrency payments into companies’ ERP systems, ensuring automatic transaction processing, commission accounting, and payment transparency for investors and auditors.

Particular attention is paid to choosing a payment gateway: it must support necessary AML/KYC standards, be integrated with corporate accounts, and provide protection against sanction risks.

Tools for compliance and transparent settlements

Modern cryptocompliance tools allow for automated financial monitoring, tracking the origin of funds, and generating cryptocurrency transaction reports in accordance with international standards. COREDO’s practice has shown that integrating solutions for compliance and transparent settlements reduces the risk of account closures and increases trust from banks and regulators.

Stablecoin and DeFi in international settlements

Stablecoin and DeFi are becoming key tools for international settlements between companies. Stablecoin helps reduce volatility risks and enable fast cross-border transfers with minimal fees. In several countries (Singapore, UAE, Estonia), stablecoin is officially recognized as a means of corporate settlement, and its regulation is based on transparency and compliance principles.

The COREDO team has implemented projects to integrate DeFi protocols and asset tokenization for corporate clients, optimizing settlements and enhancing the liquidity of digital assets on company balances.

How to choose a jurisdiction for business

Choosing a jurisdiction for registering a crypto company is a strategic decision that determines not only the legality but also the efficiency of using cryptocurrency in business. Here it is important to consider not only the legal status of cryptocurrency but also the requirements for licensing, taxation, AML/KYC, and reporting.

How to choose a jurisdiction for crypto business

COREDO’s practice shows that the best jurisdiction is where cryptocurrency is legalized as a means of payment, where there is transparent regulation, and where the licensing and reporting process is as transparent as possible. It is crucial to consider FATF client identification requirements, the presence of regulatory sandboxes, and the possibility of integration with international payment systems.

Key criteria:

• The status of cryptocurrency as a means of payment
• The availability and transparency of the licensing procedure
• AML/KYC and Due Diligence requirements
• Taxation and reporting features
• The possibility of integrating with corporate wallets and payment gateways

Conditions for business in the EU, Asia, and Africa

Practical recommendations for businesses

Practical steps for business:

1. Review current business processes and identify where and how cryptocurrency payments can be integrated.
2. Select a jurisdiction with transparent regulation and the ability to obtain a license for cryptocurrency activities.
3. Implement AML/KYC and financial monitoring systems for all cryptocurrency operations.
4. Integrate corporate wallets and payment gateways that meet international standards.
5. Optimize taxation using the possibilities of digital taxation and automated reporting.
6. Regularly conduct Due Diligence for partners and counterparties to minimize sanction and compliance risks.
7. Prepare for audits of cryptocurrency operations by integrating solutions for transaction transparency and traceability.

Types of Investment Licenses: Differences and Classification

Types of investment licenses differ in authority, requirements, and areas of application, defining their classification and specifics for obtaining. Understanding these differences is crucial for selecting the necessary permit for a specific type of investment activity: from asset management to investment advising. Next, we will discuss the features of specific types of licenses, starting with the CMS license for capital markets.

CMS License for Capital Markets

Keywords: capital markets services license, license for brokerage firms, license for asset managers, license for investment advisors, securities market regulation, investment broker

Asset Management and Financial Services License

Keywords: financial services license, license for asset managers, license for investment funds, license for family office, fund management license, fiduciary management license

License for an Investment Company

Keywords: license for fintech companies, license for SPV, license for private equity, investment platform licensing, license for investment apps, investment insurance license

Licenses for Securities and Alt-Assets

Keywords: securities operations license, futures trading license, tokenized assets issuance license, investment ICO/IEO licensing, cryptocurrency asset licensing, crowdfunding license

Licenses for Investments: EU, Asia, Africa

Investment licenses in the EU, Asia, and Africa differ significantly in requirements and regulatory characteristics. Choosing the appropriate jurisdiction directly affects the conditions for investment activities and the set of required documents for obtaining a permit. Next, we’ll dissect the key aspects of obtaining an investment license within the European Union’s territory.

License in the EU: Requirements and Features

Keywords: licensing in the EU, investment license requirements, minimum statutory capital, beneficiary transparency, AML, KYC, investment audit

Licensing in Asia: Main Markets

Keywords: licensing in Asia, license for fintech companies, crowdfunding license, tokenized asset issuance license, investment due diligence

Business Licensing in Africa

Keywords: licensing in Africa, investment license for international business, financial sustainability, investment risks

Requirements for Investment Licenses in the EU, Asia, and Africa

Investment License: How to Obtain?

An investment license is an important permit that allows legal investment activity within the chosen jurisdiction. In this section, we will explore how to get an investment license, what stages and requirements to face, and what international companies should consider when choosing a country and license type.

Investment License for an International Company

Keywords: process of obtaining an investment license, stages of obtaining an investment license, due diligence investments, investment audit, compliance

1. Analysis and choice of jurisdiction, assessment of business goals, license requirements, tax residency, and investment risks.
2. Corporate structure preparation – forming a transparent ownership structure, appointing directors, determining the amount of statutory capital.
3. Collection and preparation of documents: constituent documents, business plan, source of funds confirmation, AML/KYC procedures.
4. Due diligence investments: verification of beneficiaries, source of capital, financial sustainability.
5. Application submission and interaction with the regulator: processing the application, responding to inquiries, providing additional information.
6. Investment audit and compliance – implementing financial monitoring procedures, preparing for external audit.
7. obtaining the license and starting activities, registration in the registry, obtaining work permits, setting up internal compliance procedures.

Documents for an Investment License

Keywords: what documents are needed for an investment license, beneficiary transparency, minimum statutory capital, corporate governance

1. Articles of association and founding documents of the company
2. Information on beneficiaries and ownership structure
3. Confirmation of minimum statutory capital
4. Business plan describing the investment strategy
5. AML/KYC policies and procedures
6. Proof of qualifications of management and staff
7. Contracts with independent auditors and compliance officers

AML, KYC, and Financial Monitoring – What Are They?

Keywords: AML, KYC, financial monitoring, compliance, regulation of investment activities

For companies dealing with crypto-assets or crowdfunding, the implementation of comprehensive financial monitoring systems complying with international FATF standards and local regulatory requirements is of particular importance.

Beneficiary Verification and Investment Audit

Keywords: how the audit is conducted when obtaining an investment license, beneficiary verification, investment audit

Investment Licenses: Pros and Risks for Business

Impact of License on Capital Access

Keywords: capital market license, investment license for international business, return on investment, investment risks

For international companies, a license becomes not only a compliance tool but also a strategic asset, allowing the attraction of funding, launching new products, and entering new markets.

Risks When Choosing a Jurisdiction

Keywords: risks when choosing jurisdiction for an investment license, tax residency, investment risks, license holder restrictions

Licensing Technologies for Investment Activity

Keywords: new licensing technologies, cryptocurrency assets licensing, investment apps, digital compliance tools

How to Get an Investment License

To begin legal investment activities, it is essential to understand how to get an investment license and what types of licenses exist. This process demands a grasp of financial legislation specifics and the right choice of license considering planned services and jurisdiction.

How to Choose an Investment License

Keywords: how to choose the type of investment license, license for fintech companies, license for family office, license for investment fund

For investment funds, key criteria include capital requirements, opportunities for international investment attraction, and double taxation avoidance agreements.

Due Diligence Practices and Transparency

Keywords: due diligence investments, ownership structure transparency, financial sustainability

These measures not only expedite the license acquisition process but also minimize rejection risks from the regulator.

Errors in Preparing for Licensing

Keywords: errors in preparing for licensing, investment consulting, corporate governance

The most common errors companies make when preparing for licensing include incomplete ownership structure transparency, insufficient corporate governance attention, and untimely AML/KYC procedure implementation. The COREDO team has often assisted clients in adjusting strategies after regulator rejections by implementing comprehensive corporate governance and compliance automation solutions.

Conclusions and Advice for Entrepreneurs

• The choice of investment license type should be based on business strategic objectives, capital requirements, and jurisdiction specifics.
• Transparency of ownership structure and the implementation of modern compliance procedures are key factors for successful licensing.
• Implementing digital tools for automating KYC, AML, and financial monitoring enhances business efficiency and lowers risks.
• Deep due diligence of the chosen jurisdiction allows avoiding unforeseen limitations and minimizing investment risks.
• Timely expert engagement and regular updates of corporate governance procedures ensure long-term stability and competitiveness in international markets.

In practice, the COREDO team has repeatedly encountered situations where formally identical mechanisms led to diametrically opposite results – everything depends on the nuances of implementation and support. This article is not just an overview but a practical guide where I share strategies, case studies, and best practices accumulated by COREDO in supporting international deals, company registrations, and obtaining financial licenses in Europe, Asia, and Africa. If you want to understand how to use ROFR and ROFO to protect shareholder interests, minimize legal risks, and enhance the business’s investment appeal: I recommend reading to the end.

Right of First Refusal and Right of First Offer

For effective legal support to businesses, it is important to clearly distinguish between the Right of First Refusal (ROFR) and the Right of First Offer (ROFO). Both mechanisms are widely used in shareholder agreements, investment memorandums, and corporate exit procedures. However, their legal nature and consequences differ significantly.

Right of First Refusal: What It Is

ROFR is a contractual right granting certain shareholders or investors the advantage of purchasing a stake if another participant decides to sell it. A classic example: a shareholder intends to sell their stake to a third party but must offer it to existing shareholders first on the same terms. If they refuse, the sale to a third party is possible.

In COREDO’s practice, the following types of ROFR are often encountered:

• Standard ROFR: applies to all types of transactions with shares or stakes, including M&A and corporate restructuring.
• Limited ROFR: applies only when selling to strategic investors or exceeding a certain value threshold.
• Multi-tier ROFR: involves sequentially offering the stake to different categories of shareholders (e.g., majority shareholders first, then minority shareholders).

Right of First Offer (ROFO): What It Is

ROFO: this is the right whereby a shareholder wishing to sell their stake must first offer it to specific individuals (usually other shareholders) before approaching third parties. Unlike ROFR, deal terms are decided in negotiations between the seller and ROFO holders, not copied from a third-party offer.

ROFR and ROFO: What is the Difference?

A deep understanding of the differences between ROFR and ROFO allows not only optimal shareholder protection but also avoids common mistakes leading to corporate risks and legal disputes.

ROFR and ROFO: Examples in the EU, Asia, Africa

In Europe, ROFR is traditionally used to protect the interests of minority shareholders and prevent undesirable changes in the shareholder structure, especially in highly regulated industries (financial services, fintech, insurance). In Asia, based on COREDO’s experience, ROFO is more often applied in structures with several strategic investors, where flexibility and transaction speed are important. In Africa, where corporate law and foreign investment regulation can vary significantly across countries, the choice between ROFR and ROFO depends on deal objectives, capital structure, and local regulatory requirements.

ROFR and ROFO: Impact on Company Value

The presence of ROFR or ROFO directly affects business valuation in M&A, venture investments, and corporate restructuring. On one hand, these mechanisms increase transaction transparency and protect shareholder interests, positively impacting the investment memorandum and reducing risks for investors. On the other hand, excessively restrictive terms can deter potential buyers, reduce stake liquidity, and complicate corporate exit procedures.

Errors and Risks in ROFR/ROFO Arrangement

Key legal risks in arranging ROFR and ROFO include:

• unclear formulation of the exercise conditions (e.g., periods, notification procedures, deal terms);
• lack of enforcement mechanisms in different legal systems;
• conflicts between shareholders when exercising the right (especially in multi-tiered structures);
• non-compliance with AML/KYC compliance requirements during stake transfer.

ROFR and ROFO: How to Implement in Practice

Effective implementation of ROFR and ROFO requires not only legal literacy but also compliance procedure integration, automation, and consideration of industry best practices.

Structuring Deals: ROFR and ROFO

In practice, COREDO has developed the following algorithm for structuring deals with ROFR and ROFO:

1. Analyze goals and capital structure: define shareholder protection tasks, corporate control, and investment appeal.
2. Choose the mechanism (ROFR or ROFO): considering jurisdictional features, shareholder composition, industry, and local regulations.
3. Prepare a shareholder agreement: clear articulation of the right’s conditions, terms, notification procedures, and business evaluation for ROFR/ROFO.
4. Integrate compliance procedures: AML/KYC, corporate due diligence, coordination with international tax planning.
5. Test enforceability: verify the agreement’s enforceability within the relevant jurisdiction, considering judicial practices and local regulations.
6. Automate control: implement digital tools to monitor ROFR/ROFO adherence and deal transparency.

ROFR, ROFO, and Drag-along: How to Combine?

To minimize corporate risks and protect investor interests, it is crucial to coordinate ROFR/ROFO with drag-along rights (forced sale rights), tag-along rights (right to join sale), and pre-emptive rights (right of first purchase). In one of COREDO’s projects supporting M&A in Slovakia, integrating these mechanisms ensured a balance between corporate control and minority stakeholders’ exit flexibility.

Digital Tools for ROFR/ROFO Management

Modern legal tech solutions allow automating legal procedures for ROFR/ROFO: from electronic shareholder notifications to monitoring timelines and deal condition adherence. In COREDO’s practice, implementing such tools significantly reduced shareholder agreement breach risks and enhanced corporate governance transparency, especially in multinational structures.

ROFR and ROFO: How to Consider EU, Asia, Africa Requirements

International practice shows the effectiveness of ROFR and ROFO is largely determined by corporate law specifics and local regulations.

Taxes with ROFR and ROFO in Different Countries

In Europe, the tax consequences of stake transfers with ROFR/ROFO are regulated by both corporate and EU tax laws. In Asia and Africa, additional registration requirements may apply, including stamp duties and international tax planning specifics. COREDO’s experience shows that preliminary tax consequence analysis is a mandatory due diligence step when implementing ROFR/ROFO.

Judicial Practice on ROFR and ROFO Disputes

International judicial practice includes cases where vague ROFR/ROFO wording led to transaction invalidation or prolonged corporate disputes. In a recent COREDO case in Estonia, proper ROFR mechanism integration and corporate procedure transparency helped avoid a legal conflict between founders and minority investors.

Recommendations for Entrepreneurs and Executives

Recommendations for entrepreneurs and executives on using ROFR/ROFO will help avoid typical mistakes and maximize these tools’ effectiveness in protecting business interests. It is important to understand the key differences and implementation specifics of such agreements so every decision is balanced and aligns with your strategic goals.

How to Implement ROFR/ROFO Without Mistakes

1. Conduct a comprehensive due diligence of the capital structure and deal objectives.
2. Select the optimal mechanism (ROFR or ROFO) considering jurisdiction and shareholder composition.
3. Clearly state the conditions for exercising the right, timelines, notification procedures, and business evaluation.
4. Integrate AML/KYC compliance and tax planning.
5. Coordinate ROFR/ROFO with drag-along, tag-along, and pre-emptive rights.
6. Implement automated tools for deal control and transparency.
7. Verify shareholder agreement enforceability in the relevant jurisdiction.

How to Minimize Legal and Tax Risks

• Use international corporate governance standards and best practices for ROFR/ROFO implementation.
• Regularly update shareholder agreements with legal changes in the EU, Asia, and Africa.
• Engage professional consultants for deal support and compliance procedure integration.
• Implement digital tools to automate ROFR/ROFO compliance monitoring.

What is ROFR and ROFO, Answers to Questions

ROFR is exercised after receiving a third-party offer, ROFO: before approaching third parties. This affects deal flexibility and shareholder interest protection.

ROFR is preferable for protecting corporate control, ROFO for enhancing flexibility and minimizing deal blocking risks, especially in multinational companies.

Requires clear condition formulation in the shareholder agreement, compliance procedure integration, and regular checks for changes in the respective country’s corporate law.

Include beneficiary identification and verification procedures in corporate documents, use automated monitoring systems.

ROFR and ROFO: Differences and Risks

Today, torrent network regulation in the EU: it’s not just a matter of copyright, but a complex issue of compliance, data protection, corporate responsibility, and even cybersecurity. Blocking torrent sites, monitoring IP addresses, Abmahnung notifications, internet traffic filtering, and GDPR requirements all shape a new reality for entrepreneurs and executives working in Europe, Asia, and the CIS.

In this article, I will thoroughly examine what is legally permitted in relation to torrents in Europe, how approaches differ across countries, what risks businesses bear, and which strategies for minimizing legal and reputational losses actually work in practice. If you want not only to avoid fines, but also to establish a transparent, sustainable policy in the field of digital content, I recommend reading to the end – you will receive not only a deep analysis but also concrete tools for implementation.

Legality of Torrents in the EU by Country

Torrent sites in Europe are regulated by multiple levels of legislation: national, supranational (EU), and international agreements (WIPO, TRIPS). The legality of torrents in the EU depends on the nature of the content and the purposes of use. It’s important to distinguish legal torrents in Europe (e.g., distribution of open-source or licensed content) and the use of P2P networks for downloading copyrighted materials without the permission of the rights holder.

Torrent Sites Allowed in the EU

In most EU countries, the principle applies: access to torrent sites in itself is not prohibited. However, downloading or distributing unlicensed content is a violation of the law. For example, in Germany, France, Italy, and the UK, there is a strict policy of blocking torrent sites by IP and DNS, and internet providers are obliged by agreements with rights holders to restrict access to major pirate resources. Meanwhile, in Spain and the Czech Republic, legislation allows the personal use of torrents for downloading content if it’s not for commercial gain, yet court practices increasingly view even such use as copyright infringement.

In practice, the COREDO team has implemented projects for company registration in the Czech Republic and Estonia, where clients faced questions about the legality of P2P network use for internal needs. Our experience showed: even if there is no formal ban, providers may block access to certain torrent sites at the request of rights holders, and companies can be held accountable for the actions of their employees.

Is it Legal to Use Torrents for Personal Use?

Personal use of torrents in Spain and some Eastern European countries is permitted if the downloaded content is not used for commercial purposes or distributed to third parties. Still, even in these jurisdictions, the court practice on torrents is becoming stricter: courts acknowledge the act of downloading as a violation if the rights holder proves damage. In particular, in Spain, the number of copyright lawsuits has increased in recent years, and fines for torrents in Germany remain among the highest in the EU.

Even considering these trends, additional attention should be given to the decisions of the European Court of Justice, which define the boundaries of permissible restrictions and practice at the EU level.

Restrictions and ECJ Practice

The European Court of Justice (ECJ) has repeatedly emphasized: downloading or distributing copyrighted content via torrent networks without permission is a violation, regardless of the file transfer method. International agreements (WIPO, TRIPS) and EU directives set minimum standards for intellectual rights protection, and ECJ case law establishes a uniform approach to user and provider responsibility.

In one of COREDO’s cases, a client from the UK managed to minimize risks thanks to the timely implementation of Notice-and-Takedown procedures and cooperation with rights holders, which helped avoid lawsuits and penalties.

Responsibility for Torrents and Fines

The question of responsibility for downloading torrents in Europe is among the most pressing for businesses. Copyright infringement through P2P networks is classified as a civil, and in some cases, a criminal offense. Court practice on torrents in the EU shows: fines for torrents in Germany, France, and the UK can reach tens of thousands of euros, and in some cases, lead to the blocking of corporate resources.

Fines for Torrents in Germany and the EU

Germany operates a system of Abmahnung, pre-trial notices of copyright infringement sent to users or companies whose IP addresses were recorded downloading unlicensed content. The fine for torrents in Germany can range from 800 to 5000 euros for a single episode, and in cases of repeated violations, the amount increases significantly. In other EU countries (e.g., France, Italy), copyright lawsuits often lead to access blocks or significant financial penalties.

The COREDO team has supported clients who received Abmahnung for torrents in Germany. The solution developed at COREDO included an immediate legal response, negotiations with rights holders, and reducing fine amounts through a lawyer: in some cases, we achieved a significant reduction of sanctions and avoided litigation.

Legal Responsibility of Businesses and Employees

Legal risks for businesses using torrents by employees include not only fines but also reputational losses and possible criminal liability in case of systematic violations. The company owner is responsible for organizing corporate policy on the use of P2P networks, and the IT department for monitoring and preventing illegal torrent use on work devices. COREDO’s practice confirms: a lack of clear internal regulations and Due Diligence procedures often leads to increased risks and costs for dispute resolution.

Abmahnung Court Notification: What to Do?

COREDO’s recommendation: do not ignore the notification; immediately consult a professional lawyer to assess the validity of the claim and develop a strategy to minimize losses. In some cases, it’s possible to reduce the fine amount and prevent further lawsuits through the implementation of Notice-and-Takedown procedures and a revision of corporate policy.

Blocking Torrent Sites: How to Bypass Restrictions

Blocking torrent sites in Europe is implemented in various ways: from traffic filtering and IP/DNS blocking to agreements with internet providers restricting access to pirate sites. In some countries (e.g., UK, France), such measures are enshrined in legislation, and providers are required to transparently report on blockages.

Blocking Torrent Sites in Europe

In the UK and France, torrent site blocking is implemented through court decisions and agreements with providers, who are obliged to filter traffic and restrict access to a list of prohibited resources. In the Czech Republic and Estonia, blocking is often targeted and applied at the rights holder’s request. In Spain, blocking torrent sites is less common; however, court practice is gradually tightening.

The COREDO team analyzed cases of clients facing sudden unavailability of file-sharing resources—the solution was to transition to legal platforms and implement alternative channels for digital content distribution.

VPN: Legal Risks and Bypassing Blocks

Using VPN to bypass torrent site blocks is a common practice, but from a legal perspective, it poses additional risks for businesses. In many EU countries, attempting to bypass restrictions using VPN may be considered an aggravating factor in copyright violations, and digital trace monitoring and user identification are becoming more effective thanks to cybersecurity technology advancements.

GDPR and IP Address Monitoring: How to Handle Data

IP address monitoring of torrent users in the EU is conducted by providers and rights holders to identify violations. Data processing must comply with GDPR requirements: transparent procedures, employee notification, and minimization of personal data storage. Violations of these requirements can lead to additional sanctions from regulators.

COREDO’s practice shows: implementing compliance procedures when working with torrents and regular auditing of corporate internet traffic not only reduces legal risks but also increases trust from partners and clients.

Compliance and Corporate Policy, How to Reduce Risks

Comprehensive compliance policy is a key tool for minimizing the legal and reputational risks associated with torrent use in business. Internal regulations, employee training, appointing monitoring and due diligence officers allow building a transparent and sustainable digital risk management system.

Internal Compliance Policy for Business

Developing corporate policy for P2P network use starts with auditing current practices, assessing risks, and implementing clear regulations. It’s important to determine which types of content and platforms are allowed, what control and monitoring measures are applied, how employee training is conducted, and how incidents are responded to.

How to Assess and Reduce Risks

COREDO’s practice confirms: assessing ROI from implementing legal platforms and compliance procedures not only reduces costs for dispute resolution but also increases business competitiveness in the international market.

Regulation in Asia and Africa: Comparison

In Asian countries (e.g., Singapore, South Korea) and Africa, approaches to torrent network regulation may differ significantly from European ones. In Singapore, there is strict control over copyright violations, and blocking torrent sites is carried out at the request of rights holders and government bodies. In South Korea, internet traffic filtering technologies and copyright lawsuits are actively applied. In some African countries, regulation is less formalized, although international agreements (WIPO, TRIPS) are gradually incorporated into national legislation.

The COREDO team has supported clients in entering Asian markets, where particular attention is paid to due diligence and risk assessment of P2P network use, as well as adapting corporate policy to local requirements.

Legal Alternatives to Torrents for Business

Modern legal platforms for transmitting large files and digital content distribution allow completely abandoning torrents in a corporate environment. This not only reduces legal risks but also ensures process transparency, protection of intellectual rights, and compliance with international licensing standards.

Platforms for Transmitting Large Files

Effective legal alternatives to torrents for business include licensed cloud services (Google Drive, Dropbox Business, WeTransfer Pro), corporate digital distribution systems (Microsoft OneDrive, Box), as well as specialized platforms for transmitting large files with compliance and encryption support. Legal content distribution through such services complies with GDPR requirements, international agreements, and cybersecurity standards.

Economic Efficiency of Legal Platforms

ROI evaluation of implementing legal platforms instead of torrents includes analyzing direct and indirect costs: reducing fines, decreasing time spent resolving disputes, increasing partner and client trust, and improving business process transparency. COREDO’s practice confirms: investments in legal services pay off by preventing reputational and financial losses and optimizing internal processes.

Practical Recommendations for Business

Using torrents in Europe is a high-risk zone for business. Responsibility for downloading torrents, fines for torrents in Germany, court practice on torrents, and compliance requirements create a new reality for companies operating in the EU, Asia, and the CIS.

Typical Risks and Mitigation Methods

Checklist for Department Leader

• Conduct an audit of P2P/torrent use in the company
• Develop and implement an internal policy for torrent use
• Appoint someone responsible for compliance and monitoring
• Ensure employee training
• Implement legal file-sharing services
• Ensure GDPR compliance when monitoring traffic
• Prepare standard procedures for responding to Abmahnung notifications

Next: Answers to frequently asked questions.

Brief Answers to Popular Questions

A full ban is in effect in Germany, France, the UK; in Spain and the Czech Republic, limited personal use is allowed, but court practice is becoming stricter.

Risks include fines, lawsuits, reputation losses, and possible criminal liability.

Introduce clear regulations, appoint responsible persons, train employees, use only legal platforms, and conduct regular audits.

Use licensed cloud services and specialized platforms with compliance and encryption support.

Losses include fines, resource blocking, loss of partner and client trust, and restrictions on working in international jurisdictions.

COREDO practice confirms: timely implementation of a comprehensive compliance policy, transitioning to legal platforms, and regular audit processes are the best strategies for minimizing risks and increasing business resilience amid tightening regulation of torrent sites in Europe and beyond.

What challenges do company owners face in the EU, Asia, and Africa?

Trust Fund: Explained Simply

A trust fund (or fiduciary fund, trust) is a legal arrangement in which assets are transferred from the trust’s settlor to a trustee for management in the interest of one or more beneficiaries. Unlike traditional corporate structures, a trust is not a legal entity but operates under a trust deed that defines the rights, responsibilities, and asset distribution procedures.

Who are the settlor, beneficiary, and trustee?

How does a trust fund work?

The trust structure is built on the principle of separating legal title and economic benefit: assets legally belong to the trustee, but economic benefit belongs to the beneficiaries. This mechanism protects assets from the settlor’s creditors, corporate disputes, and external claims.

Trust Fund: Functions and Advantages

A trust fund performs several key functions that make it an indispensable tool for businesses and private clients:

• Asset protection through a trust: assets transferred into a trust are removed from the settlor’s ownership and become inaccessible to creditors, lawsuits, and corporate conflicts.
• Succession planning with a trust: a trust allows for the predetermined distribution of assets among heirs, minimizing dispute risks and tax losses.
• Tax optimization with a trust: a well-crafted trust structure can significantly reduce the tax burden by utilizing preferential regimes and international tax planning.
• Confidentiality and management flexibility: trust funds provide a high level of privacy for beneficiaries and allow quick responses to changes in legislation and market conditions.

Trust and inheritance: how to protect assets

Tax optimization and data protection

Corporate trusts: what are they and how do they work?

Types of Trust Funds in the EU, Asia, and Africa

Registering a trust fund is possible in most developed jurisdictions. However, the requirements for structure, taxation, and information disclosure significantly differ.

Family, corporate, or charitable trust – differences

• A family trust fund is used for managing family capital, estate planning, and protecting assets from creditors.
• A corporate trust is applied for optimizing business ownership structure, managing investments, and conducting M&A deals.
• A charitable trust is intended for funding social, educational, and cultural projects, as well as implementing corporate social responsibility (CSR).

How to choose a jurisdiction for a trust?

Trust Fund Registration – Support

Creating a trust fund is a multistage process requiring a deep understanding of local and international law, as well as modern AML and KYC requirements.

How to create a trust fund: step by step

1. Goal and task analysis: determining the trust’s objectives (asset protection, estate planning, investments).
2. Jurisdiction selection: assessment of tax, legal, and compliance risks.
3. Trust deed development: drafting a detailed agreement taking into account asset distribution features and beneficiaries’ rights.
4. Appointment of trustee and protector: selection of professional participants with impeccable reputations.
5. Registration of the trust: submitting documents to the registering authority, passing Due Diligence and KYC procedures.
6. Opening bank accounts and integration with other structures: ensuring the trust’s operational activities.

Compliance and KYC for trust structures

Costs and mistakes in creating a trust

Trust Fund Risks for Entrepreneurs

Despite the obvious advantages, trust funds carry certain risks and limitations that must be considered during their creation and management.

Transparency and Beneficiary Disclosure

Legal and Tax Risks Abroad

Trust Fund for Business: How to Use?

Effective use of a trust fund requires not only sound legal work but also a strategic approach to management and integration with other tools.

Criteria for Selecting a Manager

Integration of Trust Fund with Capital

Modern Technologies for Trust Management

Practical Steps for Entrepreneurs

Checklist for choosing a trust structure:

1. Clearly define the trust’s objectives (asset protection, estate planning, investments).
2. Analyze tax and legal risks in potential jurisdictions.
3. Prepare a detailed trust deed considering all asset distribution scenarios.
4. Conduct due diligence and select a professional trustee with an impeccable reputation.
5. Ensure compliance with AML, KYC, and beneficiary information disclosure requirements.
6. Integrate the trust structure with other capital management tools.
7. Use modern technologies for compliance automation and asset management.

In a world where the assets under management of a single company exceed the GDP of most countries, traditional notions of financial market influence require reevaluation. Today, BlackRock, the largest investment company in the world, manages assets amounting to nearly $10 trillion, which equates to almost 10% of all global financial assets.

In this article, I, Nikita Veremeev, founder of COREDO, offer not just an overview of the BlackRock phenomenon but a practical guide for executives and financial directors seeking reliable and strategically sound solutions for international business. Ahead: an in-depth analysis of the structure, strategies, risks, and opportunities of the world’s largest investment company, as well as practical recommendations based on COREDO’s experience with corporate clients in the EU, Asia, and the CIS. Read the article to the end for answers to key questions and tools for decision-making in the new financial reality.

BlackRock: Company Structure and Scale

BlackRock is the largest investment company in the world, managing vast volumes of assets and influencing global financial markets. Let’s take a closer look at BlackRock’s structure and business areas to understand how such a scale and efficiency are achieved.

BlackRock’s Structure and Activities

BlackRock’s structure: a complex ecosystem with over 70 offices in 30 countries, offering a wide range of investment solutions for corporate clients, institutional investors, and individuals. The core activities include asset management, launching and administering investment funds, alternative investments, and developing digital platforms for investors.

The key element of BlackRock’s structure is investment funds, both traditional (stocks, bonds, mixed portfolios) and exchange-traded funds (ETFs), which provide liquidity and transparency for investors worldwide. The development of alternative investments, from private equity to infrastructure projects and digital assets, allows BlackRock to support global portfolio diversification and offer innovative financial instruments demanded in European, Asian, and Middle Eastern markets.

COREDO’s practice confirms: for corporate clients considering international expansion or asset diversification, BlackRock’s structure becomes a benchmark for institutional investing with a focus on transparency, compliance, and sustainable development.

BlackRock’s Assets: Dynamics and Structure

Assets under management (AUM) at BlackRock are a key indicator of the company’s scale and influence. As of 2025, BlackRock’s AUM exceeds $9.8 trillion, making it the largest asset manager in the world. The dynamic AUM reflects a steady net inflow of investments, driven by institutional investors and the popularity of ETFs and alternative assets among corporate clients.

The distribution of assets under management demonstrates strategic diversification: about 55% are in the US markets, 30% in Europe and the UK, and the rest in Asia and other regions. This approach allows BlackRock to effectively manage market volatility and ensure long-term investment trends for clients.

BlackRock’s Capital and Resilience

BlackRock’s financial resilience is confirmed not only by the volume of AUM but also by equity and return on equity (ROE) metrics. By the end of 2024, BlackRock’s equity exceeded $40 billion, and ROE remains stable at around 15–18%. The company’s financial statements comply with international IFRS standards, ensuring transparency for corporate clients and regulators.

The use of leverage in BlackRock’s investment strategies is strictly controlled by internal and external auditors, minimizing systemic risks and supporting financial stability even during market shocks.

BlackRock’s Investment Strategies

BlackRock’s investment strategies cover a wide range of approaches, from diversified portfolios to specialized solutions for individual sectors and sustainable (ESG) investments. Thanks to its scale and technological leadership, BlackRock offers tools for investors with different goals and risk levels, using both traditional and innovative strategies.

BlackRock’s Investment Strategies

BlackRock offers a wide range of investment strategies tailored to the needs of corporate clients and institutional investors, including index and active funds, multi-asset solutions, and innovative ETFs that ensure flexibility and liquidity. For international businesses, products focused on global diversification and portfolio volatility reduction are of particular value.

Solutions developed at COREDO for clients in the EU and Asia often include combining traditional and alternative BlackRock instruments to optimize portfolio structure considering jurisdiction and industry specifics.

Alternative Investments and Digital Assets

Alternative investments, one of the fastest-growing segments in BlackRock’s structure, actively developing private equity, infrastructure projects, real estate, and, importantly for modern corporate clients, digital assets.

In COREDO’s practice, cases of entering new markets through BlackRock’s alternative investments have shown high portfolio resilience even during market turbulence.

BlackRock’s Role in ESG Investing

BlackRock’s involvement in ESG investing and sustainable development is not just a declaration but a strategic priority realized through the integration of ESG factors into investment decisions and corporate governance. The company leads in implementing sustainable investing standards, reflecting in its portfolio structure and partner ecosystems.

COREDO’s practice shows,

BlackRock: Risk Management and AML

BlackRock, a world leader in risk management and AML compliance (anti-money laundering), sets industry standards. This article discusses how BlackRock implements advanced approaches to investment risk management and uses digital solutions to enhance transparency and efficiency.

Risk Management in Investments and Digitalization

Effective risk management: the foundation of BlackRock’s investment activities. At the center of the management system is the proprietary platform Aladdin, combining analytics, automation, and artificial intelligence for real-time investment risk assessment and monitoring.

COREDO’s experience in supporting international transactions confirms:

Compliance and KYC Standards at BlackRock

BlackRock adheres to the strictest international compliance standards, including AML (Anti-Money Laundering) and KYC (Know Your Customer), crucial for corporate clients operating in multiple jurisdictions. Due diligence procedures, automation of counterparty checks, and the integration of compliance and AML in investment processes minimize regulatory risks and ensure transparency in investment activities.

The COREDO team has implemented projects to support account openings and investments through BlackRock for clients in the EU and Asia, with particular emphasis on regulatory compliance and the implementation of best practices in compliance integration.

Interaction with Regulators in the EU and Asia

BlackRock’s role in regulating European and Asian markets goes beyond the standard interaction of an asset manager with regulators. The company actively participates in shaping regulatory policy, implementing new reporting standards, and promoting sustainable investing.

COREDO’s practice shows that partnership with BlackRock facilitates the alignment of investment products with EU and Asian regulators, speeds up market entry, and reduces compliance costs.

Opportunities for Corporate Clients

Opportunities for corporate clients cover a wide range of solutions aimed at supporting and developing international business. Modern tools allow companies to efficiently manage investments, finances, and corporate structure in a global market environment.

Investment Solutions for International Business

BlackRock offers corporate and legal entities a wide range of investment products: from ETFs and alternative assets to specialized ESG funds and liquidity management solutions. BlackRock’s partner ecosystems include strategic alliances with international banks and funds, enabling companies to implement comprehensive investment strategies.

The COREDO team develops customized solutions for clients, considering jurisdiction, industry, and compliance requirements.

Assessing Investment Profitability with BlackRock

Scaling an investment portfolio with BlackRock is possible through expanding the product line and integrating innovative financial instruments and digital platforms. To assess investment profitability, metrics such as ROI, long-term returns, and portfolio efficiency are used, allowing for strategically sound decisions.

In COREDO’s practice, implementing BlackRock tools for portfolio efficiency assessment helped clients from the EU and Asia enhance reporting transparency and optimize investment structure considering long-term trends.

Business Partner Alliances

BlackRock actively forms strategic alliances with banks, funds, and technology companies, creating partner ecosystems to support corporate clients at all investment cycle stages. For businesses, this opens access to investment pipelines, new markets, and innovative asset management solutions.

Solutions implemented by COREDO in collaboration with BlackRock partners enabled clients to scale their business, reduce transaction support costs, and accelerate international market entry.

Comparative Table of BlackRock Investment Products for Legal Entities

Impact of BlackRock on Financial Markets

The impact of BlackRock on financial markets manifests not only in the scale of capital managed but also in its ability to set market trends and shape investor expectations. The company’s expertise spans entire regions, including the EU and Asia, making its solutions key for assessing asset values and market dynamics in these territories.

Asset Values and Market Trends in the EU and Asia

In COREDO cases accompanying European companies’ entry into Asian markets, partnership with BlackRock provided access to analytics and investment products that considered regional market specifics and minimized global investing risks.

Risks of BlackRock’s Market Dominance

COREDO’s experience indicates that for corporate clients, it’s crucial not only to leverage BlackRock’s scale advantages but also to diversify partnerships to minimize potential risks associated with one company’s dominance.

BlackRock and Competitors: Comparison

A comparative analysis of investment companies confirms BlackRock’s uniqueness in AUM volume, product line breadth, and digitalization level of investment management. However, for corporate clients, it is important to consider not only scale but also service quality, reporting transparency, solution innovation, and compliance with international compliance standards.

In COREDO’s practice, analyzing BlackRock’s competitive advantages allows recommending this company as a strategic partner for international business, especially in market expansion and ESG standard adherence.

Practical Recommendations for Business

• Evaluate BlackRock’s investment products considering business specifics, jurisdiction, and long-term goals.
• Carefully study compliance and AML requirements for corporate clients, integrating best practices into due diligence processes.
• Leverage portfolio scaling opportunities and BlackRock’s partner programs for market entry and asset diversification.
• Keep track of BlackRock’s innovations in digitalization and ESG to meet international sustainable development and corporate responsibility standards.
• Regularly monitor portfolio performance using key metrics ROI, long-term returns, and financial stability, employing BlackRock analytics and tools.

This approach ensures sustainable growth and competitiveness in global markets.

At the same time, the number of applications for FINMA licenses in Switzerland grew by almost one-third, and interest in registering cryptocurrency businesses in Europe reached a historical peak.

Today, the question is not simply about obtaining a cryptocurrency license in the EU or Switzerland but about a strategic choice of jurisdiction, which will determine scaling opportunities, access to investments, and business resilience in the ever-changing landscape of cryptocurrency regulation in Europe. How to ensure compliance, protect investors, optimize taxes, and not lose momentum in implementing innovative fintech solutions?

In this article, I will thoroughly analyze the key differences between the Swiss crypto license and MiCA, provide practical recommendations, and offer tools for strategic choice. If you want not just to comply with requirements but to use regulation as a growth driver – read to the end: here, you will find answers to the most pressing market questions.

Cryptocurrency Regulation: Switzerland and MiCA

Cryptocurrency regulation is becoming increasingly relevant against the backdrop of the rapid growth of the industry and new legislative initiatives. Switzerland and the European MiCA regulation offer different approaches: the first focuses on tax clarity and oversight by FINMA, and the second on comprehensive harmonization of rules for all participants in the crypto market. Next, we will consider how these mechanisms are embodied in the requirements for crypto businesses in Switzerland and EU countries.

Regulation of Crypto Business in Switzerland: FINMA and SRO

Switzerland is traditionally perceived as one of the most innovative and flexible jurisdictions for crypto businesses. Regulation here is built on the principle of “technological neutrality” and individual assessment of business models. Two institutions play a key role: FINMA (Swiss Financial Market Supervisory Authority) and SRO (Self-Regulatory Organization).

For most cryptocurrency companies, including exchanges, brokers, custodial services, STOs, and stablecoin projects, either direct Licensing by FINMA or membership in one of the SROs is required. For example, if a business is related to cryptocurrency exchange or storing digital assets for clients, a financial intermediary or bank license is needed, along with compliance with AML/KYC standards and internal controls.

It is important to note that the types of crypto licenses in Switzerland vary in the scope of allowed operations, capital requirements, and internal controls.

MiCA, Cryptocurrency Regulation in the EU

MiCA (Markets in Crypto-Assets Regulation): this is the world’s first comprehensive regulation that creates unified rules for cryptocurrency companies across all EU countries. Its implementation in 2024-2025 became a key event for cryptocurrency regulation in Europe.

MiCA sets clear standards for the licensing of cryptocurrency exchanges, custodial services, token issuers, and stablecoins, and introduces the concept of an EU passport (passporting), allowing services to be offered across the entire EU territory without the need to obtain separate licenses in each country. This opens up new possibilities for cross-border payments and business scaling.

The solution developed by COREDO for clients entering the EU market always includes a strategic assessment of MiCA compliance and an analysis of token, security token, and stablecoin regulation prospects.

Requirements for Obtaining a Crypto License in Switzerland

The requirements for obtaining a crypto license in Switzerland include a series of mandatory steps and formal conditions for companies planning to work with crypto assets. Even at the initial stage, it’s crucial to choose the correct legal form (AG or GmbH) and ensure compliance with the Swiss regulator FINMA’s requirements.

Registration of AG or GmbH and Application to FINMA

The process of registering a crypto business in Switzerland begins with creating a legal entity – most often this is an AG (joint-stock company) or GmbH (limited liability company). At this stage, it is important to properly structure corporate governance, determine the composition of shareholders, and appoint a compliance officer.

To apply to FINMA or SRO, a comprehensive package of documents is needed: a business plan for the crypto business detailing the business model, financial statements, proof of minimum capital, information about the beneficiaries, internal AML/KYC policies, due diligence procedures, and internal auditing.

AML/KYC Requirements in Switzerland

AML/KYC policy in Switzerland is built on a combination of national legislation and international FATF standards. Crypto companies are required to implement client identification procedures, transaction monitoring, internal controls, and regular audits.

COREDO’s experience shows that integrating automated KYC tools and building a multilayered internal control system allows not only to meet FINMA/SRO requirements but also significantly speeds up the licensing process.

Minimum Capital and License Cost

The minimum capital for a Crypto License in Switzerland depends on the type of license selected and the business model: for financial intermediaries – from 100,000 CHF, for banking and custodial services – from 300,000 to 10 million CHF. It is important to note that the funds must be placed in Swiss bank accounts and documented.

The cost of licensing is composed of state fees, SRO/FINMA services, and expenses for accompanying the process. In COREDO’s practice, there have been cases where optimizing the corporate structure AG/GmbH significantly reduced costs and expedited the procedure.

Thus, competent company structuring and correct document preparation can significantly simplify obtaining a license. Next, we will consider the main tax advantages for crypto businesses in Switzerland.

Tax Benefits for Crypto Businesses

Switzerland offers unique tax benefits for crypto businesses: low corporate tax rates, no capital gains tax for certain digital asset transactions, and flexible taxation regimes for innovative fintech solutions. Additionally, the developed infrastructure of banking and legal services and a favorable attitude toward the adoption of new blockchain technologies make this jurisdiction especially attractive for international projects.

MiCA Requirements for Cryptocurrency License in the EU

MiCA’s requirements for a cryptocurrency license in the EU have become the essential regulations for entering the European crypto asset market. For legal operation, providers and issuers of cryptocurrencies now need to comply with a complex set of standards ensuring transparency, stability, and customer protection.

MiCA Requirements and Licensing

Licensing of cryptocurrency exchanges and other crypto companies in the EU under MiCA begins with preparing a business plan, describing the business model, risk assessment, and developing internal policies for AML/KYC. Companies must confirm the availability of minimum capital (from 125,000 EUR for exchanges), appoint a compliance officer, and implement internal control and corporate governance procedures.

The solution prepared by the COREDO team for clients entering the EU market always includes a strategic assessment of MiCA compliance, analysis of prospects for token and digital asset regulation, and the preparation of documents for submission to national regulators or ESMA.

AML/KYC and Data Protection in Europe

MiCA requires strict adherence to FATF standards, implementation of comprehensive due diligence procedures, continuous transaction monitoring, and regular client checks.

The compliance officer becomes a key figure in the structure of a crypto company: responsible for implementing and controlling all AML/KYC procedures, interacting with regulators and auditors, as well as employee training.

Regulation of Stablecoins and Tokens under MiCA

MiCA introduces a clear classification of tokens: utility tokens, asset-referenced tokens, e-money tokens, and security tokens. Separate requirements are provided for the disclosure of information, investor protection, fund reservation, and internal controls for each type.

The COREDO team has delivered projects for STO and stablecoin licensing in the EU, enabling clients not only to meet new requirements but also to attract institutional investors through high transparency and asset protection levels.

Advantages of MiCA for Investors

One of MiCA’s key advantages is the opportunity for passporting, the provision of services in all EU countries based on a single license. This greatly simplifies crypto business scaling, reduces compliance costs, and opens access to new markets and investors.

Swiss Crypto License and MiCA: Differences

Registration of Crypto Business: Choice of Jurisdiction

Registration of a crypto business: choice of jurisdiction is one of the key stages for a successful start and further development in the digital asset industry. The choice of country affects licensing requirements, tax burden, and the company’s scaling opportunities. In the following sections, we will consider the registration features of crypto companies in popular jurisdictions like Switzerland and EU countries (MiCA).

Switzerland or EU (MiCA): How to Choose?

The choice between MiCA and the Swiss license depends on the business model, target markets, and investment goals of the company.

However, for scalable projects focused on the European market and cross-border payments, the advantages of MiCA and European passporting become crucial.

The COREDO team recommends conducting a strategic analysis of jurisdictions, considering the prospects of introducing new blockchain technologies, banking license requirements for crypto businesses, and long-term goals for attracting investments.

Risks and Prospects of Crypto Companies

The implementation of MiCA brings both new opportunities and risks for existing crypto companies.

For companies already licensed in Switzerland, transitioning to MiCA may require additional business model adaptation and internal policy adjustments.

COREDO’s experience shows that timely preparation for new requirements and the integration of international FATF standards can minimize reputational and operational risks, as well as increase ROI by optimizing expense structures and tax burdens.

Examples of Successful Licensing

Another case: preparing an STO platform for licensing under MiCA: a comprehensive due diligence program was implemented, an investor protection policy was developed, and compliance with new token and stablecoin regulation requirements was ensured. As a result, the client obtained a European financial services passport and entered new markets.

Practical Tips for Entrepreneurs

– tips for choosing a jurisdiction:

• Evaluate target markets, expense structure, and scaling requirements
• Analyze tax regimes and optimization opportunities
• Consider the prospects for introducing new technologies and innovation requirements
• Explore the possibility of passporting for accessing EU markets

– Mistakes and pitfalls:

• Underestimating AML/KYC and internal control requirements
• Errors in corporate governance structure and appointment of responsible personnel
• Untimely adaptation of the business model to new MiCA requirements
• Ignoring tax specifics and cross-border restrictions

– How to ensure compliance and investor protection:

• Implement automated KYC/AML solutions
• Build a multilayered internal control and regular audit system
• Ensure corporate structure transparency and information disclosure for investors
• Organize employee training and constant monitoring of legislative changes

– Recommendations for choosing a consulting partner:

• Evaluate the team’s licensing experience in the chosen jurisdiction
• Check for successful cases and expertise in compliance, taxes, and corporate governance
• Ensure transparency of processes and comprehensive support at all stages

Crypto License Switzerland or MiCA, What to Choose?

The choice between MiCA and Swiss regulation: is a strategic decision that determines not only compliance with requirements but also growth potential, investment attractiveness, and business stability. For companies focused on innovation, flexibility, and tax optimization, Switzerland remains one of the best options. For scalable projects targeting the European market, passporting, and institutional investors, MiCA’s advantages become evident.

COREDO’s practice shows that the optimal result is achieved only through a comprehensive analysis of the business model, goals, and risks, as well as through competent support at all stages of registration and licensing. In the conditions of constantly changing cryptocurrency regulation in Europe, strategic analysis of jurisdictions and timely adaptation to new standards become key success factors for international crypto businesses.

Every day over 90 million barrels of oil are sold worldwide, and just about 100 companies control more than 80% of that volume. While global oil trade shapes state budgets and determines the stability of world financial markets, entering the oil market remains nearly inaccessible for new players. Why is international oil trade one of the most closed and regulated industries? What barriers and risks await entrepreneurs who decide to enter this market, and how can they be overcome?

Oil Business: Why It Is Closed

The oil business is traditionally considered one of the most closed and difficult industries to enter. The reasons for this lie not only in high barriers and specific market rules but also in the unique structure of the oil market and the role of its main participants.

Structure of the Oil Market and Its Participants

International oil trade is a complex chain that includes oil extraction, transportation, trading, and export. At each stage, its own rules apply, and access to infrastructure and raw materials is controlled by a limited circle of participants. Major state-owned oil companies (NOCs) such as Saudi Aramco, ADNOC, CNPC, as well as global oil traders (Vitol, Glencore, Trafigura) form the core of the market. Their corporate structures for oil trading often include subsidiaries in key jurisdictions, specialized oil trading platforms, and a network of financial intermediaries.

Entry Barriers for New Companies

The COREDO team has completed projects registering oil companies in the EU and Asia, where the key obstacle was not only the financial threshold but also the need to confirm the transparency of fund sources and market experience. Competition among traders stimulates the formation of strategic alliances, without which access to infrastructure and large contracts is practically impossible.

Geopolitics and Economics: Key Factors

Geopolitical risks and international sanctions directly impact oil trade restrictions. Trade embargoes, oil export duties, and currency control in several countries make the market inaccessible to companies without stable international connections and compliance expertise.

Legal Barriers in Oil Trade

Legal barriers in oil trade are influenced by various national and international regulations that often complicate companies’ entry into global markets and determine rules of competition and access to infrastructure. The peculiarities of oil market regulation in the EU, Asia, and Africa directly affect trade mechanisms and the strategic planning of industry participants.

Regulation of the Oil Market in the EU, Asia, and Africa

Registering oil companies in the EU, Asia, and Africa requires accounting for national and international regulatory standards of the oil market. In the EU, key regulators include ESMA and national financial authorities, in Asia – MAS (Singapore), FSC (Hong Kong), and in Africa – specialized agencies and ministries of energy. Licensing requirements for oil trade include not only capital source confirmation but also implementing compliance procedures in accordance with EU AML directives and FATF recommendations.

Table: Comparison of Requirements for Oil Company Registration

AML and KYC for Oil Companies

In 2024, AML requirements for oil companies have tightened significantly: new standards for beneficiary identification have appeared, the lists of suspicious operations have expanded, and control over shell companies has intensified. Our experience at COREDO showed that implementing automated transaction monitoring systems and regular audits of oil deals are the best practices for minimizing compliance risks.

Beneficiary Transparency, How to Verify Sources of Funds

The solutions developed at COREDO include comprehensive verifications of corporate structure, analysis of beneficial ownership, and the implementation of transaction transparency tools.

Risks of Sanctions Evasion for Oil Traders

Next, we will consider how sanctions and embargoes affect oil export and the activities of oil traders.

Sanctions and Embargoes: Impact on Oil Export

Export sanctions on oil and trade embargoes are major factors making the market closed to new companies. International sanctions by the EU, USA, UK, and a number of Asian countries limit access to financing, logistics, and even to oil trading platforms. Violating the sanctions regime leads not only to financial but also criminal consequences, as well as long-term reputational risks.

Schemes for Oil Re-export and Sanctions Evasion

Table: Common Sanctions Evasion Schemes and Their Risks

Legal and Reputational Risks – What Are They?

Tax Risks in the Oil Business

Tax risks in the oil business are becoming more significant every year due to tighter tax regulations and the revision of industry benefits. In these conditions, optimizing company structure in oil trading becomes a key tool for minimizing tax losses and maintaining financial sustainability.

Optimizing Company Structure in Oil Trading

Scheme: Corporate Structure for International Oil Trading

• Holding company (EU/Asia)
• Operating company (offshore/Asia)
• Trading platform
• Bank accounts in EU/Asia/Africa

Tax Risks in Financial Reporting

Solutions implemented by COREDO allow minimizing the tax burden through the right choice of jurisdiction, implementation of international reporting standards, and regular audits.

Financing in Oil Deals

Financing oil deals requires using oil derivatives, engaging financial intermediaries, and adhering to currency control. Under sanctions and restrictions, classic tools (letters of credit, bank guarantees) are complemented by alternative settlement schemes. COREDO’s practice confirms: diversifying financing instruments and implementing compliance procedures ensure financial security and business model sustainability.

How to Enter the Oil Market with Minimal Risks

Entering the oil market is inevitably associated with high volatility and numerous specific risks, so minimizing losses requires a systematic and conscious approach to each activity stage. One of the key tools for risk reduction: thorough counterparty verification and conducting due diligence, which will help avoid costly mistakes at the market entry stage.

Counterparty Verification: How to Conduct Due Diligence

Checklist: Compliance Procedures for Oil Traders

• Identification and verification of beneficiaries
• Funds origin verification
• Transaction monitoring
• Regular audits and KYC file updates

Legal Support and Compliance – Recommendations

How to Scale a Business Model?

Recommendations for Entrepreneurs

COREDO’s practice confirms: a comprehensive approach, including legal support for oil deals, compliance in the oil industry, and international standards implementation, allows not only entering the closed market but also building a sustainable, transparent, and profitable oil business.

In 2024, the average cost of a single trade secret breach for an international company exceeded $4.45 million, with 62% of incidents linked to insider risks and industrial espionage (according to IBM, European Union Intellectual Property Office, JETRO). These numbers are not just impressive; they underscore that trade secrets are no longer an abstract concept but a tangible strategic asset crucial for competitive advantage, business valuation, and resilience in international markets.

Amidst tightening trade secret legislation, rising cyber threats, and globalization of business processes, protecting confidential information becomes essential for companies operating in the EU, Asia, and CIS. How to establish an effective trade secret regime in an international structure? Which measures effectively counter leaks and industrial espionage? How to integrate AML and compliance requirements into a unified corporate policy? I will address these and other questions in this article, drawing on COREDO’s practical experience in company registration, obtaining financial licenses, and business support across various jurisdictions.

If you want to not only understand the nuances of legislation but also receive step-by-step recommendations for building a trade secret protection system, I recommend reading the material to the end.

Trade Secrets – What They Are and Their Types

At COREDO, we often encounter clients who confuse trade secrets with other types of confidential information, leading to errors in organizing internal access control and forming corporate security policies.

For more effective information protection, it is important to understand which laws and standards regulate trade secrets and confidentiality matters.

Trade Secrets: Laws and Standards

In different jurisdictions, trade secret legislation is based on similar principles but differs in details. The EU has Directive 2016/943, which outlines minimal standards for trade secret protection, as well as GDPR and ISO 27001, which set frameworks for data and information security management. Singapore, the UK, Czech Republic, and Estonia have their own laws and regulatory acts governing features of trade secrets, protection measures, and liability for disclosure.

Types of Trade Secrets and Protection Features

Key features of trade secrets:

• The information has actual or potential commercial value.
• It is not publicly accessible.
• A trade secret regime is applied (organizational, technical, and legal measures).
• Information can be expressed in any form: from technological processes to client databases and business strategies.

Trade Secrets vs. Confidential Information: What’s the Difference?

Trade secrets are different from other types of confidential information (such as personal data or trade secrets) not only in characteristics but also in the protection regime. NDA (non-disclosure agreement) and internal regulations are basic tools, but a stricter organization is required for trade secrets: access restriction, digital document marking, implementation of data storage and destruction policy, as well as regular audits.

Therefore, effective protection requires a systematic approach combining organizational, technical, and legal measures, which we will discuss further.

Trade Secret Protection – Main Measures

Effective trade secret protection is impossible without a comprehensive approach combining organizational, technical, and compliance measures. COREDO’s practice confirms: only the integration of these elements allows the creation of a sustainable trade secret regime compliant with international standards.

Organizational Trade Secret Protection Measures

At COREDO, we recommend:

• Creating a list of information constituting a trade secret.
• Implementing internal access control and access management system.
• Training employees to work with trade secrets, including regular information security and insider risk training.
• Concluding NDAs with staff, contractors, and external consultants.

Example: For a client in the fintech sector, the COREDO team developed a comprehensive corporate security policy, including whistleblowing procedures, Due Diligence in M&A and internal regulations for data storage and destruction.

DLP Systems, MDM, and Digital Marking

These tools not only limit access to information but also monitor unauthorized copying or transfer attempts.

In one of COREDO’s cases for a large holding structure in the EU, we integrated a DLP system with data storage and destruction policy, which reduced information leak risks during remote work and IT function outsourcing.

AML and Trade Secret Protection

The solution developed at COREDO for an international payment company included an information security audit, implementation of ISO 27001, regular GDPR checks, and training of compliance officers on trade secret management.

Trade Secret Protection Abroad

Cross-border operations and outsourcing increase data leak risks and require special attention to legal aspects of trade secret transfer, protection in holding structures, and interactions with contractors.
COREDO’s practice showed that risk minimization is achieved through:

• Implementing a multi-level access control system.
• Using international standards (ISO 27001, GDPR).
• Concluding detailed non-disclosure agreements and contractor liability agreements.

Information Leaks: Risks and Liability

Even the most advanced system does not guarantee absolute protection from information leaks. Thus, incident management and clearly defining liability for trade secret disclosure become key elements of trade secret management.

Sources of Data Breaches and Scenarios

In international practice, cases of leaks through outsourcing, cloud services, and remote work are also common.

What to Do in Case of a Trade Secret Leak

The COREDO team recommends the following step-by-step plan:

1. Immediately localize the incident (limit access, isolate systems).
2. Conduct an information security audit and forensic investigation into the trade secret leak.
3. Notify interested parties (internal whistleblowing, partners, regulators).
4. Assess damage and initiate legal proceedings (including filing lawsuits).
5. Review and enhance trade secret protection measures.

Liability for Trade Secret Disclosure

Liability for trade secret disclosure in the EU, Asia, and CIS includes civil, administrative, and criminal measures. In cross-border operations, proving the leak and forensic investigation, as well as interjurisdictions cooperation, become particularly important.

Trade Secret Protection System Audit

Regular audits of the trade secret protection system are a necessary condition for maintaining its effectiveness and international standard compliance. Such audits reveal vulnerabilities, assess ROI from implemented measures, and prepare the company for regulator inspections.

Business Process Audit Checklist

• Classify confidential information.
• Check the presence and relevance of internal regulations.
• Evaluate the effectiveness of the access management system.
• Verify employee training and their awareness of the trade secret policy.
• Analyze technical protection means (DLP, MDM, digital marking).
• Evaluate the company’s readiness to respond to incidents.

ROI Evaluation of Trade Secret Regime

COREDO’s experience shows companies that regularly invest in audits and training achieve better market capitalization and stability.

Cases and Legal Practice on Trade Secrets

Let’s look at common mistakes and gaps in protection systems and a review of court cases in the EU and Asia.

Common Mistakes in Protection Systems

• Lack of clear information classification and internal regulations.
• Insufficient employee training.
• Ignoring technical protection measures in remote work and outsourcing.
• A formal approach to concluding NDAs without subsequent execution control.

Court Cases in the EU and Asia

In 2023, a court in Germany recognized industrial espionage only due to digital document marking and DLP system logs. In Singapore, successful damage recovery became possible after integrating compliance and AML procedures into a corporate security policy.

Practical Recommendations for Businesses

Effective trade secret protection: is an ongoing process, requiring a strategic approach and regular improvement.

Trade Secret Protection Checklist

• Classify confidential information.
• Implement internal regulations and trade secret policy.
• Ensure employee training and regular workshops.
• Conclude NDAs and agreements with contractors.
• Use DLP, MDM, and other technical means.
• Conduct regular audits and efficiency evaluations.
• Integrate AML and compliance requirements.
• Develop an incident response algorithm.

If you are interested in establishing a sustainable trade secret protection system, the COREDO team is ready to share their experience, conduct an audit, and offer solutions proven in practice in the EU, Asia, and CIS.

[^1]: IBM Security, Cost of a Data Breach Report 2024
[^2]: European Union Intellectual Property Office, “Trade Secrets and Confidential Business Information: The Evidence from the EU,” 2023
[^3]: JETRO, “Intellectual Property Protection in Asia,” 2024
[^4]: Directive (EU) 2016/943 of the European Parliament and of the Council
[^5]: GDPR (General Data Protection Regulation)
[^6]: ISO/IEC 27001:2022
[^7]: Singapore Trade Secrets Law (Case Law Overview)
[^8]: Estonian Information Security Standard (E-ITS)

Did you know that in 2024, more than 60% of identified money laundering cases in Europe were linked to insufficient financial control and weakly integrated AML procedures in accounting? In the Czech Republic, according to FAU, the number of suspicious transactions identified thanks to new AML control technologies has increased by 38% over the past two years.

Today, accounting in the Czech Republic is not only about bookkeeping and reporting but is a key front in the fight against money laundering and terrorist financing. The new AML 2025 requirements tighten the rules of the game: now the responsibility for non-compliance with Czech anti-money laundering legislation lies not only on the owners but also on accountants, compliance officers, and AML contact persons.

Anti-Money Laundering Law of the Czech Republic 2025

The Anti-Money Laundering Law of the Czech Republic 2025 sets new, stricter requirements for financial and non-financial organizations, as well as for professionals such as accountants and consultants. These rules aim to align Czech legislation with European directives and international standards on anti-money laundering and terrorist financing. Below are the key AML requirements in the Czech Republic to consider from 2025 onwards.

AML Requirements in the Czech Republic

The Czech Republic’s anti-money laundering legislation is built on Act No. 253/2008 Coll., which is harmonized with the European AML Directive (AMLD) and includes requirements for KYC, Due Diligence, internal policies, and financial monitoring. The law applies to a wide range of AML-obliged entities: banks, financial companies, accounting firms, auditors, legal companies, and even individual entrepreneurs if they provide accounting services Czech Republic or participate in the management of corporate structures.

From 2025, the new AML 2025 Czech Republic requirements have come into force: now each company subject to the law must appoint an AML contact person and register them with the Financial Analytical Office (FAU). This person is responsible for implementing and controlling AML compliance in the Czech Republic, interacting with regulators, and promptly submitting reports on suspicious transactions (STR).

Accountant Responsibilities for AML in the Czech Republic

Accounting in the Czech Republic today is not just accounting but a full-fledged element of the AML control system. Accountant’s AML responsibilities include:

• Identifying and verifying clients (KYC), including Beneficial Owners.
• Monitoring transactions and detecting suspicious activities.
• Documenting and storing AML documentation for accountants, including protocols for Due Diligence and internal reports.
• Maintaining accounting and AML: integrating procedures into daily business processes, automating controls, and regularly updating internal AML policies.
• Preparing and submitting STR to FAU upon detecting suspicious activities.

AML in Accounting in the Czech Republic: What Is It and Why?

AML in accounting in the Czech Republic: what is it and why, a question that has become especially relevant in 2025 for all who conduct business in the country. New AML control requirements now directly affect not only banks but also accountants, and it is no longer possible to do without implementing these procedures. Below we examine which AML procedures are now mandatory and why their implementation becomes an integral part of an accountant’s work in the Czech Republic.

AML Procedures in Accounting

Effective implementation of AML procedures for businesses begins with a risk-based approach (Risk-Based Approach). The algorithm recommended by the COREDO team to clients includes:

1. Risk analysis: determining vulnerabilities, assessing clients, operations, and channels based on AML risk criteria for companies in the Czech Republic.
2. Development of internal AML policies: formalizing KYC procedures, Due Diligence, monitoring, storage, and data processing.
3. Implementation of internal AML control systems in accounting: automating AML processes using electronic accounting systems and specialized IT solutions.
4. Documenting AML procedures: maintaining electronic and paper registers, storing protocols and reports according to legal requirements.
5. Regular AML training for accountants in the Czech Republic: professional development, staff testing, implementation of best practices.

Registration of AML Contact Person

From 2025, every company providing accounting services in the Czech Republic must appoint an AML contact person in the Czech Republic. The candidate must have sufficient qualifications in AML compliance, know Act No. 253/2008 Coll., and have experience interacting with the FAU.

The registration process is as follows:

• The company director submits an application to the FAU with the appointed person’s data.
• The contact person undergoes internal training and assumes responsibility for interacting with regulators, controlling procedures, and submitting STR.

AML Audit: How to Prepare and Pass

Types of AML audits in the Czech Republic include internal AML audits, external audits (initiated by the owner or auditor), and state checks by the FAU. Preparing for an AML audit requires:

• Updating and verifying all AML documents.
• Testing staff knowledge of procedures.
• Analyzing previous incidents and correcting identified violations.

AML Risks for Business in the Czech Republic

AML risks for business in the Czech Republic are not only a formal legal requirement but also a real factor affecting the stability and security of financial operations. Compliance with standards on combating money laundering and terrorist financing becomes a key element for any company and its accounting.

AML Risks for Business and Accounting

AML for small and medium businesses in the Czech Republic is especially relevant as these companies often underestimate risks related to terrorist financing, sanction lists, and cross-border operations. A risk-based approach allows focusing on the most vulnerable areas: complex corporate structures, operations with foreign partners, anonymous payments.

AML: Responsibility and Fines in the Czech Republic

Liability for AML violations in the Czech Republic is multi-level:

• Administrative: fines up to 5 million CZK for lack of an AML contact person, failure to submit STR, or insufficient internal control.
• Criminal: liability for participation in money laundering schemes or terrorist financing.
• Reputational: account blocking, license revocation, loss of trust from banks and partners.

AML Recommendations for Accountants in the Czech Republic

AML recommendations for accountants in the Czech Republic are becoming increasingly important in the context of tightening legislation and expanding anti-money laundering responsibilities. To effectively comply with new requirements, accountants must master basic tools for AML control implementation and understand which actions are necessary to minimize the risk of law violations.

Tools for Implementing AML Control

Integrating AML control into digital accounting systems is key to efficiency.

Metrics and KPIs for evaluating AML procedure efficiency include:

• Time taken for KYC processing.
• Number of suspicious transactions identified.
• Percentage of successfully passed AML audits.

AML Training for Accountants

AML training for accountants in the Czech Republic: not a formality but a necessary condition for maintaining compliance. Training programs include:

• Study of AML 2025 changes.
• Practical cases and situation modeling.
• Knowledge testing and regular certification.

AML: Interaction with Banks and Regulators

Effective interaction of accounting with state AML bodies is the key to successfully passing inspections. Important aspects include:

• Timely submission of reports on suspicious transactions.
• Compliance with personal data protection requirements under AML.
• Prompt response to FAU and bank requests.

AML Regulation in the Czech Republic and EU: Comparison

AML Regulation in the Czech Republic and EU: comparison is an important topic for companies working with financial operations and digital assets. In recent years, the Czech Republic has been actively integrating European standards in the field of anti-money laundering (AML), leading to both convergence and the retention of certain national regulatory features. We will now explore in detail the key differences in AML requirements in the Czech Republic and the entire EU.

AML Requirements in the Czech Republic and EU: What’s the Difference?

Although AML regulation in the Czech Republic is based on European directives, there are some national features:

• Stricter requirements for AML contact person registration.
• Specific procedures for interacting with the FAU.
• Special attention to the transparency of corporate structures and disclosure of beneficial owners (beneficial owner).

Conclusions and Steps for Business

The year 2025 has brought significant changes to AML compliance in the Czech Republic: tightening control, new accounting duties, and increased management responsibility. To ensure compliance and minimize risks, I recommend:

• Conduct an audit of current procedures and update internal AML policies.
• Appoint and register an AML contact person by February 1, 2025.
• Implement automated monitoring and reporting systems.
• Regularly train staff and conduct internal audits.
• Ensure transparency of corporate structure and timely disclose information on beneficial owners.
• If complexities arise, seek legal assistance for AML processes from experts with international experience.

AML for Accountants in the Czech Republic: Questions and Answers

How to appoint an AML contact person?

What documents are needed for AML control?

How to prepare for an AML audit?

How to automate AML processes?

What sanctions are there for AML violations?

Useful Resources and Templates for Work

Useful links:

• Act No. 253/2008 Coll.
• FAU, Financial Analytical Office
• European AML Directive (AMLD)
• COREDO Templates for Internal Policies and Checklists

If you have any questions regarding the implementation of AML procedures in accounting in the Czech Republic, the COREDO team is ready to share their experience, adapt solutions to your business’s specifics, and provide reliable support at every stage.

Every third major fine in Europe over the past three years is related to insufficient scrutiny of Politically Exposed Persons (PEP) and violation of AML procedures. According to FATF, more than 60% of international corruption cases somehow involve PEPs and their surroundings.

In this article, I, Nikita Veremeev, will explain why dealing with PEPs is a high-risk area, the legal requirements applicable in different regions, how the COREDO team implements practical solutions for clients, and what to do to stay within the law.
I recommend reading to the end: you will receive not only strategic ideas but also specific algorithms that will help protect and scale your business internationally.

Who are PEPs and why businesses need to check them

Who are PEPs and why businesses need to check them is a question not only of financial risks but also of compliance with international compliance standards. Politically linked individuals can pose reputational and legal threats to companies, so it is important to understand their status and the reasons for conducting checks.

What is a PEP and international standards

FATF (Financial Action Task Force) defines PEPs as key subjects in the fight against money laundering (AML) and terrorist financing. The European Union and OFAC (Office of Foreign Assets Control, USA) have their own, though similar, criteria for identifying PEPs, including mandatory scanning against national and international PEP lists, and applying the principle of political exposure in client risk assessment.
In COREDO’s practice, we encounter situations where the PEP status is not evident: for example, when registering a company in Singapore or Estonia, where the beneficiary is a family member of a former minister.

Risks of doing business with PEP for foreign companies

Engaging with politically exposed persons carries several risk levels for businesses.

Legal responsibility for companies for AML violations when dealing with PEPs in the EU and Asia involves not only fines (up to 10% of annual turnover) but also criminal prosecution of executives. For example, in 2023, a European bank was fined €83 million for inadequate operation controls involving PEPs from African countries, which led to a large-scale investigation and loss of licenses for certain activities.
COREDO’s experience confirms: even in the absence of malicious intent, a formal approach to checking PEPs leads to financial and reputational losses.

PEP compliance: requirements in the EU, Asia, Africa

PEP compliance: is a key regulatory element for banks and companies dealing with international clients and counterparties, as it allows identifying and controlling risks related to politically exposed persons. PEP compliance requirements vary significantly in the EU, Asia, and Africa, with each jurisdiction setting its own standards and verification procedures. Let’s examine how regional approaches to PEP compliance are formed and differ.

Regional requirements and differences

The European Union has strict and unified PEP identification and control standards enshrined in the AML Directives (5AMLD, 6AMLD). Companies are required to conduct enhanced due diligence, regularly update information about clients and their beneficiaries, and document all control actions related to PEP transactions.
In Asia, approaches vary: in Singapore and Hong Kong, regulators require mandatory KYC procedures for PEPs and automated transaction monitoring systems. UAE emphasizes sanctions compliance and mandatory checks for all related parties.
In Africa, requirements are gradually tightening: leading countries (South Africa, Nigeria) are adopting FATF recommendations, but the level of automation and transparency is still lower, and liability for violations is more lenient.
For clarity – see the comparative table:

Liability for AML violations in dealing with PEPs

Companies and their executives are liable for non-compliance with due diligence procedures, insufficient transaction control, and failure to identify PEPs among clients or partners.
Sanctions include heavy fines, business prohibitions, license revocations, and even criminal prosecution. In 2024, a major investment fund in the UK was fined £47 million for the lack of an automated PEP identification system, which led to missing suspicious transactions involving foreign politicians.
COREDO’s practice shows: implementing best practices for AML and regular PEP risk audits not only helps avoid fines but also raises trust from banks and international partners.

How to check a client for PEP and KYC?

The process of checking a client’s compliance with PEP and KYC requirements: is not a formality but a crucial stage in assessing risks when dealing with individuals and legal entities.

Let us delve into organizing due diligence and KYC for clients with PEP indications.

Due diligence and KYC for PEP individuals

Identifying a PEP starts with constructing a client’s risk profile and checking them against national and international PEP lists (e.g., World-Check, Dow Jones, Refinitiv).
An effective due diligence procedure for politically exposed persons includes several stages:

1. Initial identification – analyzing profile data, public sources, and corporate registers.
2. Checking beneficial owners and associated persons (family, business partners), as family and associated PEP individuals are often used to circumvent sanctions and conceal true control.
3. Disclosure of information about the PEP and documenting all verification stages – a mandatory requirement for companies in the EU and Asia.

COREDO’s team frequently encounters cases where a formal check doesn’t reveal PEP status, but a thorough audit of the corporate structure and analysis of connections uncovers hidden beneficiaries with political exposure. This approach minimizes risks and ensures corporate transparency.

Automation of PEP identification and monitoring

Modern digital tools for PEP identification (such as API integrations with global databases, AI algorithms for analyzing corporate connections) allow businesses to automate KYC processes and transactional monitoring.
Automating PEP identification reduces the risk of human error, speeds up data processing, and ensures regular monitoring of PEP operations in real-time.

Investments in digital tools for PEP monitoring pay off by reducing operational and reputational risks and enhancing the efficiency of internal controls.

Risks and control when working with PEP

Risks and controls when working with PEP require special attention: such clients are exposed to increased risks of corruption, money laundering, and other financial crimes. Effective control mechanisms and the implementation of procedures, including conducting AML audits and regular operation monitoring, are crucial for minimizing these risks.

AML audit and implementation for companies

Developing and implementing effective AML policies for companies with an international structure is a task that requires a comprehensive approach.
COREDO’s practice confirms: a successful project starts with a detailed PEP risk audit, corporate transparency assessment, and building an internal control system.

• Regular updating of KYC and due diligence procedures for PEP
• Implementing automated control and reporting systems
• Conducting internal audits of AML procedure effectiveness and adjusting policies based on identified weaknesses

For holdings and company groups in the EU and Asia, integrating international FATF standards, and local requirements, and training staff on AML and PEP compliance is crucial.

Moving on to the next stage – analyzing methods for risk minimization and violation prevention – allows ensuring comprehensive compliance with regulator requirements and stability of the compliance system.

How to minimize risks and avoid violations

Consider this case: when registering a company in Singapore, one of the beneficiaries was linked to a former high-ranking official from a CIS country.
The COREDO team implemented a comprehensive check not only on the beneficiary but also all family and associated persons, identified potential conflicts of interest, and ensured disclosure of information for banks and regulators. As a result, the client successfully passed the compliance check at a Singaporean bank, gaining access to financial services without delays.
Another example: in Estonia, a client faced account blockages due to insufficient control over transactions involving PEP. After implementing automated transaction monitoring and performing regular risk audits, the business regained access to banking services and avoided fines.

How to work with PEP without breaking the law

Step-by-step plan for businesses

If a PEP is identified among your clients or partners, follow a clear algorithm:

1. Conduct enhanced identification and due diligence, including checking all related persons and beneficiaries.
2. Integrate international FATF standards and EU requirements into corporate KYC procedures, automate operation monitoring.
3. Ensure staff training on AML and PEP compliance issues, implement escalation procedures for suspicious operations.
4. Document all stages of verification and interaction with PEP to be ready for regulator inspections.

COREDO’s experience shows that timely implementation of best practices for AML and legal support in transactions involving PEPs is the key to business sustainability on international markets.

Reporting and interaction with regulators

Companies are required to maintain detailed reporting on all operations involving PEPs, including disclosure of information on beneficiaries, family, and associated persons.
Interaction with regulators during inspections requires transparency of the corporate structure and readiness to provide all necessary documentation upon request.

The COREDO team supports clients at all stages, from report preparation to interaction with international regulators and sanction checks.

Frequently asked questions on business compliance

Use international and national PEP lists, analyze public sources and corporate registers, conduct thorough due diligence of all beneficiaries and associated persons.

In the EU, fines up to 10% of turnover, in Asia: business prohibitions and license revocations, in Africa – restrictions on access to financial services.

Implement digital tools for PEP identification and monitoring, integrate them with corporate KYC and AML systems.

Check not only direct beneficiaries but everyone who may be linked to a PEP through family or business ties and document the results of the verification.

Disclose information about ultimate beneficiaries, implement internal control and regular audits of corporate connections.

Practical steps for businesses

• Dealing with politically significant persons requires a systematic approach based on international AML standards and best compliance practices with PEP.
• Effective identification, monitoring automation, and regular risk audits are the basis of legal safety and business stability.
• Implementing comprehensive AML policies, training staff, and ensuring corporate structure transparency can minimize reputational and financial risks.
• If you plan to register a company, obtain a financial license, or scale your business involving PEPs: the COREDO team is ready to offer strategic solutions based on international experience and deep expertise.

For consultations and legal support, contact us directly, as COREDO’s experience guarantees reliability and transparency at every stage of your international business.

In 2024, the Czech real estate market hit a record: according to the European Banking Authority, over 16% of major real estate transactions in the EU were identified as high-risk in terms of money laundering – and Czech Republic ranked in the top 5 countries for suspicious operations in the sector.

Today, the real estate market in Czech Republic is not just about investments and transactions, but also an area of increased attention from regulators. The Czech law on anti-money laundering (Act No. 253/2008 Sb.), EU AML directives, new FAÚ requirements, all form a new reality for realtors, agencies, and investors.

I will share how the COREDO team has implemented dozens of successful projects on AML system implementation, registration of contact persons, and FAÚ audit preparation, and what solutions work effectively in 2025.

AML Requirements in Czech Republic 2024–2025

AML requirements in Czech Republic 2024–2025 are significantly tightening and covering more companies and entrepreneurs operating in the country. The introduction of new rules and updates to local legislation are closely aligned with international AML standards, which requires careful study of the key law 253/2008 Sb. and compliance with new regulations in the coming years.

Act 253/2008 Sb. and International AML Standards

The law integrates EU AML directives (including the 6th Directive) and FATF standards, ensuring compliance with international requirements and allowing Czech Republic to remain an attractive jurisdiction for foreign investors.

In 2024–2025, key changes affected the expansion of the list of obligated entities, tightening controls over commercial real estate transactions, and introducing new criteria for assessing beneficial owners. Realtors are now obliged to conduct comprehensive client checks and ensure constant financial monitoring in Czech Republic at all stages of the transaction.

Moreover, from February 1, 2025, all AML-obligated entities must appoint and register a contact person with the FAÚ, which has become a mandatory step for realtors and real estate agencies.

Registration of AML Contact Person for Realtors

From 2024, changes came into effect requiring every real estate agency to appoint and register an AML contact person.

The solution developed by COREDO for our clients allows for the automation of data submission and updates, minimizing the risk of missing AML contact person notification deadlines in Czech Republic.

AML obligations extended for realtors in Czech Republic: they now include not only client identification but also regular data updates, internal control implementation, and mandatory reporting of suspicious operations. COREDO’s practice confirms: only a systematic compliance approach can avoid fines and reputational losses.

The Role of FAÚ and National Financial Regulators

The Financial Analytical Office of Czech Republic (FAÚ) is the key body responsible for financial monitoring and AML compliance enforcement. FAÚ works closely with the Czech National Bank, conducts regulatory audits, and analyzes suspicious operations.

Realtors’ AML Obligations in Czech Republic

Realtors’ AML obligations in Czech Republic include mandatory control to prevent money laundering and terrorist financing, requiring thorough client checks and risk assessments.

KYC: How to Check a Client and Assess Risks

KYC (Know Your Customer) – is not just a formality but the foundation of a real estate agency’s internal policy. Comprehensive client check by a realtor in Czech Republic includes identity verification, source of funds analysis, politically exposed person (PEP) status check, and risk assessment related to FATF high-risk jurisdictions.

Special attention is devoted to transactions with foreign investors: here, it is important not only to verify documents but also to assess ownership structure, identify the ultimate beneficial owner, and ensure absence of ties to sanction lists.

Beneficiary Check: How to Identify the Owner

In 2025, criteria for determining the beneficial owner in Czech Republic have tightened: realtors are now required to document ownership chain, including offshore structures and trusts.

To minimize risks, we recommend using international databases and conducting independent verification of ownership information.

Internal Control and AML Automation

Implementing internal AML control for realtors in Czech Republic involves not just developing regulations, but also integrating automated AML systems to ensure information security and compliance with international standards.

Registration of AML Contact Person in Czech Republic

Registration of the AML contact person in Czech Republic is a mandatory procedure for companies subject to local anti-money laundering laws.

Registration through datová schránka: Step by Step

Electronic registration of the AML contact person is a mandatory step for all real estate agencies. The procedure includes:

1. Filling out the Czech Ministry of Finance form on the official portal.
2. Submitting the application through the electronic datová schránka system.
3. Receiving confirmation of the AML contact person’s registration.

Deadlines for AML contact person notification in Czech Republic are strictly regulated: no later than 10 working days after appointment. The solution developed by COREDO automates this process and allows tracking notification status in real-time.

Change of Contact Person Details

In the event of changes to the AML contact person’s details in Czech Republic, updated information must be submitted via datová schránka within 5 working days. Cessation of AML entity activities also requires timely regulator notification.

Liability for Late Notification and Errors

Typical errors include late data updates, absence of supporting documents, and a formal approach to form filling. COREDO’s practice confirms: only a clear system of internal control can avoid these risks.

Suspicious Real Estate Transactions in Czech Republic

Suspicious real estate transactions in Czech Republic are becoming an increasingly pressing issue amid rising fraudulent schemes and new ways to deceive buyers and tenants.

Signs of Suspicious Operations and Their Examples

Suspicious real estate transactions in Czech Republic are operations that do not conform to regular practice, involve complex financing schemes, PEP participation, FATF high-risk jurisdictions, and unclear source of funds. For example, purchasing real estate for an amount significantly exceeding the client’s official income or using complex offshore structures for payment.

Report to FAÚ: Procedure and Timing

The form is completed electronically, and the report is stored within the agency’s internal control system. The solution implemented by COREDO allows integrating the notification process with internal procedures to ensure transparency for regulators.

Realtors’ Liability for AML in Czech Republic

Violation of these requirements can lead to substantial fines and other sanctions, which we will discuss in more detail in the following sections.

Types of Fines and Sanctions

Sanctions for AML violations in real estate include administrative fines (up to 5 million CZK), suspension or revocation of licenses, and in certain cases: criminal responsibility.

In COREDO’s practice, there have been cases where delayed notification of a contact person’s change led to account blocking and operation suspension for up to 3 months.

FAÚ Audits: Common Realtor Mistakes

An FAÚ audit on AML is not just a document review but also an analysis of the internal control system’s effectiveness, KYC procedure quality, and timeliness of suspicious operation reports.

COREDO’s practice shows: regular training and internal procedure audits: the key to reducing risks and successfully passing audits.

AML and Real Estate in Czech Republic: Business Impact

Modern anti-money laundering (AML) requirements affect both Czech and foreign companies and impose specific demands on investors and politically exposed persons (PEP).

Additionally, particular attention is paid to disclosing information about ultimate beneficiaries and the source of funds’ origin, which becomes particularly relevant for foreign investors and PEPs.

AML for Foreign Investors and PEP

AML features for transactions with foreign investors are associated with the need to consider PEP identification, source of funds analysis, and risk assessment related to FATF high-risk jurisdictions.

Transparency and Trust in International Business

Financial transparency of transactions and compliance with international AML standards are key factors in attracting investments and scaling business. Compliance in real estate becomes a competitive advantage: banks and partners increasingly require adherence to internal and external standards.

AML for Realtors in Czech Republic: 2025 Requirements

In 2025, new AML requirements for realtors will come into force in Czech Republic: rules for combating money laundering and terrorist financing.

Below are the key steps and a checklist to help agencies comply with updated AML requirements for realtors in Czech Republic in 2025.

Checklist for Real Estate Agencies

Automation and Cost Reduction

Integrating automated AML systems and syncing KYC with CRM allows real estate agencies to minimize operational costs, increase ROI from AML system implementation and ensure process transparency.

Recommendations for Entrepreneurs and Realtors

A comprehensive approach to compliance, process automation, regular staff training, and transaction transparency are key elements that allow not only to avoid sanctions but also to enhance international partners’ trust, scale the business, and minimize reputational risks. COREDO’s practice confirms: only systematic solutions and professional support at all stages provide long-term success in the Czech real estate market.

“90% of major corporate scandals in recent years in Europe were related to the concealment of real beneficial owners and non-transparent ownership structures.” This statistic from the European Commission is not just impressive – it sets a new development vector for EU corporate law by 2025. Today, transparency of business owners and strict AML compliance for companies are becoming not just regulatory requirements, but a strategic imperative for any international business planning to register legal entities in Europe, Asia, or the CIS.

Requirements for Beneficiaries in Europe in 2025

In 2025, requirements for beneficiaries in Europe are tightening: companies are required to ensure ownership transparency, adhere to new AML standards, and regularly update information on ultimate owners. To comply with these rules, it is important to clearly understand who is recognized as the ultimate beneficiary and how to correctly identify them within European legislation.

How to Identify the Ultimate Beneficiary

Special attention is paid to cross-border ownership structures and nominee services. If the ownership chain includes a foreign company or a nominee holder, disclosure of information about the beneficiary becomes mandatory, and the distinction between the beneficiary and the controlled foreign company becomes crucial for Due Diligence and KYC procedures. COREDO’s practice confirms: ignoring these nuances leads to account blocks and license denials, especially in financial services, crypto, and forex sectors.

EU UBO Register: Disclosure in 2025

We are entering the era of automated platforms for submitting data on beneficiaries. In 2025, the EU’s UBO register becomes fully digital, integrating with national registers and banking systems. This means that the annual confirmation and updating of beneficiary data is now conducted through an automated beneficiary register, and monitoring changes in ownership structure is conducted in real time.

AML Compliance: New Requirements 2025

The requirements for AML compliance in 2025 are becoming stricter: companies must not only strengthen internal procedures but also be prepared for constant checks and the collection of additional data about clients and their transactions. In this context, updated AML directives and KYC procedures acquire special significance, where key changes appear that need to be known today.

AML Directives and KYC Procedures: What’s New

The EU’s Anti-Money Laundering Directive (EU AML Directive 2025) tightens AML compliance requirements for companies. Now, every stage of legal entity registration in Europe is accompanied by mandatory due diligence and KYC procedures, and the role of the compliance officer becomes key for corporate reporting.

Liability for Violation of UBO Register Requirements

In 2025, fines for violation of UBO register requirements reach 10% of the company’s annual turnover, and automatic removal from the company register becomes a real threat for those who do not update data timely. Liability for concealing a beneficiary now extends not only to directors but also to compliance officers, and court prohibitions for violating beneficiary disclosure can block account operations and asset transactions.

Implementation of New Requirements for Business

The implementation of new requirements for business in 2025 entails significant changes in legislation and operational regulations. To minimize risks and comply with established norms, companies need to timely familiarize themselves with new obligations and correctly implement all necessary procedures.

Detailed information on how to update beneficiary details in 2025 is provided in the next section.

How to Update Beneficiary Data in 2025

The transition to automated platforms demands a clear procedure for working with the UBO register. In practice, COREDO recommends the following algorithm:

1. Conduct an audit of the company’s ownership structure, identifying all individuals with substantial control and ownership share.
2. Prepare a package of documents for identifying the ultimate beneficiary: passport, proof of address, ownership documents, corporate resolutions.
3. Enter or update data in the automated beneficiary register via the national platform or integrated corporate system.
4. Annually confirm the accuracy of the information, track changes, and promptly respond to regulatory requirements.

Thus, the transition to automated platforms for preparing and maintaining the UBO register creates a base for effective compliance process automation.

Automation of Compliance Processes

Digitalization of compliance is a key trend in 2025. COREDO’s team is implementing modern solutions for automating the submission and monitoring of beneficiary data: from integration with government platforms to using cloud services for information storage and protection. Special attention is paid to the security and confidentiality of beneficiary data, with encryption, multi-level authentication, and regular IT system audits becoming mandatory elements of corporate compliance.

New Requirements and the Investment Climate

In the context of emerging new requirements and a changing investment climate, companies have to consider increasingly complex regulation and business environment parameters. These changes affect not only business strategy but also directly impact corporate risks and tax consequences for investors and entrepreneurs.

As a result, a new set of challenges is emerging that requires increased attention to corporate risk management and tax planning.

Corporate Risks and Tax Consequences

Disclosure of beneficiary information directly impacts the investment climate. International banks and partners are increasingly requesting confirmation of business owner transparency when opening accounts and closing deals. COREDO observes that companies promptly implementing new corporate governance standards and ownership chain disclosure gain access to more favorable banking financing conditions and international investments.

Benefits and Exemptions for Different Companies

There are categories of companies with special disclosure conditions, such as funds, trusts, and certain types of holding structures. Low-risk entities and specific sectors (e.g., innovative startups) are provided exemptions on the amount of disclosed information. However, the final decision always remains with the EU regulatory bodies and national regulators.

Practical Recommendations for Business

How to Minimize Compliance Risks?

• Conduct an audit of the ownership structure with the involvement of external experts.
• Implement automated platforms for beneficiary data submission and monitoring.
• Regularly train employees on new AML and EU corporate law requirements for 2025.
• Use digital solutions for storing and protecting data, complying with international standards.
• Maintain constant monitoring of changes in legislation and corporate sanctions lists.

Metrics for UBO and AML Procedure Effectiveness

• Time to update beneficiary data (target: <48 hours).
• Number of identified errors in the ownership structure (target: 0).
• Percentage of successfully confirmed data in the automated register (target: 100%).
• Number of sanction or fine cases (target: 0).

Compliance Officer’s Checklist

• [ ] Conducted audit of the ownership structure, identifying all UBOs.
• [ ] Updated data in the automated beneficiary register.
• [ ] Implemented a digital compliance platform.
• [ ] Employees trained on AML and UBO reporting.
• [ ] Developed a plan for monitoring legislative changes.

Long-Tail Queries: Questions and Answers

Expansion of UBO identification criteria, mandatory annual confirmation of data, automation of submission and monitoring of information, tightening of sanctions for violations.

Via the national or integrated corporate platform, providing up-to-date documents and confirmation of the ownership structure.

Fines up to 10% of turnover, automatic removal from the register, court prohibitions on operations, and account blockages.

Reduces compliance costs, accelerates processes, but requires a high level of digital maturity and data security.

Passport, address proof, ownership documents, corporate resolutions confirming control.

To obtain relevant regulations and official clarifications, I recommend using resources from the European Commission, national regulators, and professional associations.

COREDO’s experience shows: timely adaptation to the new UBO and AML requirements is not only a question of legality but also a strategic advantage in international business. A reliable corporate governance structure, compliance digitalization, and business owner transparency become key factors for sustainable growth and partner trust in 2025.

In 2025, Ukraine unexpectedly found itself at the center of attention of global investors: according to international agencies, the volume of foreign direct investment in the country increased by 37% over the last 18 months, despite ongoing challenges and instability. Behind these figures lies a much more complex picture: rapid growth in domestic demand, large-scale economic recovery programs, activation of international partners and grant initiatives, as well as unprecedented digitalization of business processes. How to build a sustainable strategy and not get lost in the flow of changes? Which industries currently genuinely offer opportunities, and where do risks still outweigh potential?

If you are: an entrepreneur, a manager, or an investor considering doing business with Ukraine in 2025, this article will provide you with not only a strategic framework but also specific tools for registering a business, obtaining licenses, organizing legal support, building export models, and managing risks. The COREDO team has prepared an analytical guide based on their experience in supporting international projects in the EU, Asia, and CIS, as well as on the synthesis of the most recent expert sources. Read to the end — you will get not only answers to key questions but also practical recommendations for achieving your business goals in Ukraine.

Economic Trends in Ukraine 2025

Economic trends in Ukraine 2025 are forming against the background of the ongoing war and high uncertainty, yet the country is showing signs of gradual recovery and resilience. In these conditions, it’s especially important to understand which factors and sectors will drive the growth of domestic demand and the economy in the near future.

Drivers of Domestic Demand and Economic Growth

Economic recovery programs coordinated with the support of the EU, IMF, and various international funds have ensured the inflow of grants and credit lines for small and medium-sized businesses. In practice, the COREDO team has observed how clients using these programs have not only restored operations but have also reached new markets by localizing production and implementing digital solutions.

Special attention is given to supporting small and medium businesses: public and private initiatives provide subsidies, tax breaks, and access to educational programs. The domestic demand for local goods and services continues to grow, aided by import substitution programs and the development of e-commerce. However, the war conditions maintain high demand volatility in specific regions, necessitating flexible business models and constant market trend monitoring.

In such conditions, identifying promising investment sectors for the coming year becomes particularly important.

Which Industries to Invest In in 2025

COREDO’s experience confirms that in 2025, the most promising investments in Ukraine remain in agribusiness, agro-processing, IT, logistics, construction, educational services, and green energy projects. Agribusiness Ukraine 2025 shows sustainable export growth of organic products, aided by certification according to EU standards and the development of digital export platforms. Logistics and delivery Ukraine become key drivers for companies focused on export and import, while localizing production helps reduce operational and logistical costs.

In the green energy projects Ukraine segment, there is an increase in investments in solar and wind energy, as well as biogas plants. The COREDO team has implemented several projects on deal structuring in this area, providing clients access to international grants and investment memorandums. Ukraine organic products export is another niche where demand from the EU and Asia exceeds supply, with certification according to EU standards becoming a key competitive advantage.

The Impact of War on Business Models

Conducting business in the conditions of war Ukraine requires entrepreneurs and investors to adopt fundamentally new approaches to risk management and building supply chain resilience. Business models under instability are built on flexibility, supplier diversification, business risk insurance, and the implementation of digital tools for monitoring supply chains. COREDO’s practice shows that companies investing in resilient supply chains and process automation have minimized costs and ensured uninterrupted export operations even during peak logistic disruptions.

Business Registration in Ukraine for Foreigners

Business registration in Ukraine for foreigners is becoming an increasingly sought-after service due to the country’s openness to foreign investments and the simplicity of processes. Still, to ensure the process is quick and error-free, it’s crucial to understand the legal requirements and prepare the necessary documents beforehand. Below, we consider the key steps and nuances important for a foreigner when starting a business in Ukraine in 2025.

How to Start a Business in Ukraine as a Foreigner in 2025

In practice, the process includes the following steps:

1. Selecting the organizational and legal form (LLC, Joint-Stock Company, Representative Office, etc.)
2. Preparing a set of founding documents considering the residency requirements for founders and directors.
3. Undergoing KYC procedures for partners and beneficiaries.
4. Registering with state registers, opening a bank account, and tax registration.
5. Obtaining necessary licenses depending on the area of activity.

The COREDO team supports clients at every stage, including legal consultations for foreign companies and comprehensive partner checks. Special attention is given to analyzing investment risks Ukraine, including assessing the reputation of counterparties and compliance with international AML standards.

Legal Barriers and Regulation

Legal barriers for business Ukraine in 2025 are primarily related to currency control, capital repatriation, licensing specifics, and M&A procedures. For European companies, legal risks for doing business in Ukraine include the need for constant monitoring of legislative changes, compliance with beneficiary disclosure requirements, and reporting according to international standards.

Currency control and restrictions remain one of the key topics for foreign investors:

COREDO’s practice shows that comprehensive legal business support Ukraine, including due diligence and financial monitoring, minimizes regulatory risks and accelerates transaction approvals.

EU Certification for Ukrainian Companies

Certification and EU standards for Ukrainian companies are mandatory for entering EU markets and gaining access to international tenders. In 2025, product certification requirements according to EU standards have become stricter, especially for the agro-industrial sector, food industry, and organic producers. The COREDO team has implemented several projects on organic product certification for Ukraine export, providing clients with not only technical support but also legal assistance in the licensing process.

Successfully completing certification requires considering not only technical regulations but also traceability, environmental, and sustainability requirements (ESG requirements for Ukrainian companies). This becomes particularly relevant for companies targeting exports to Germany, France, the Netherlands, and Scandinavian countries.

AML and KYC for Business in Ukraine

AML and KYC for business in Ukraine are not just formal requirements but essential measures to protect your operations from financial crimes and ensure transparency. In 2025, the application of AML and KYC standards becomes even stricter: businesses will need to implement new client identification procedures and transaction controls in line with updated legislation.

AML and KYC Requirements in 2025

In 2025, AML compliance Ukraine underwent significant changes: new client identification standards were introduced, KYC procedure requirements for partners were expanded, and financial monitoring became mandatory for all companies working with foreign capital. At COREDO, we observe that successfully passing compliance control in Ukraine requires integrating automated platforms for data collection and verification, as well as regularly updating internal policies according to FATF and EU recommendations.

Features of AML compliance for Ukrainian enterprises include mandatory verification of funding sources, real-time transaction monitoring, and reporting suspicious operations. A case from COREDO: for a client entering the EU market, a comprehensive KYC platform was developed integrated with European registers, speeding up the onboarding process and reducing account freeze risks.

Risk Management Tools for Investors

Risk management for foreign investors Ukraine demands a systematic approach: starting with detailed due diligence Ukraine and ending with the implementation of business risk insurance and corporate security tools. COREDO solutions include developing individual liquidity management policies, integrating digital platforms for financial monitoring, and organizing regular stress tests for business models.

For a COREDO client implementing an infrastructure project in Ukraine, a multi-level corporate security system was built, including legal audits, monitoring regulatory changes, and automating investor reporting.

Export and Import of Ukraine: How to Start?

Export and import of Ukraine are not only the foundation of foreign economic relations but also a real opportunity for businesses to enter new markets or diversify supplies. Understanding modern logistic strategies and solutions is essential: that’s why we will review key aspects of export logistics.

Export Logistics: Strategy and Solutions

Export and import Ukraine 2025 require not only a deep understanding of foreign markets but also the implementation of digital platforms for export, allowing small and medium businesses to build effective export strategies and minimize logistic costs. A small business export strategy is built on market diversification, e-commerce Ukraine 2025 utilization, and business process automation.

The COREDO team has supported projects entering the EU and Asian markets, where the integration of digital tools for supply chain management and logistics optimization became crucial success factors.

EU Customs Barriers for Exports from Ukraine

EU-Ukraine customs barriers remain significant hurdles for exporters, especially in the agro-products and industrial equipment segments. In 2025, product certification requirements according to EU standards became stricter: both technical certification and compliance with sustainability and traceability standards are required.

Supply Chain Resilience and Localization

Supply chain resilience is the key factor for companies operating under instability. Supply chain resilience is ensured through Ukraine production localization, supplier diversification, and digital tools for logistics risk monitoring. In practice, COREDO assists clients in building flexible localization models, allowing not only operational cost reductions but also increasing business resilience to external shocks.

Innovation and Digitalization in Business

Innovation and digitalization in business provide companies with new growth opportunities, make processes more efficient, and help respond quickly to market changes. These trends require the implementation of modern technologies and reevaluation of conventional business processes, including automation of key operations and shifting to a digital environment.

Digitalization and Business Automation

In 2025, e-commerce Ukraine 2025 shows double-digit growth rates, and the emphasis on personnel qualification emerges due to the integration of online training and knowledge management platforms. The COREDO team has implemented projects for ERP systems implementation, financial monitoring automation, and digitalization of export operations, significantly increasing clients’ business process efficiency and transparency.

ESG Requirements for Green Energy Projects

ESG requirements for Ukrainian companies and green energy projects Ukraine become mandatory for accessing international investments and tenders. In 2025, sustainable development is not just a trend but a requirement from regulators and investors. Companies integrating ESG approaches gain access to favorable financing, international grants, and support programs. At COREDO, we support projects on ESG reporting implementation and green energy deal structuring, ensuring compliance with international standards and environmental requirements.

Moving on to opportunities for support and cost optimization, significant advantages for investors include government programs and tax incentives.

Government Support and Tax Incentives for Investors

Government support and tax incentives for investors remain key tools for attracting and stimulating investments in the economy. Modern measures aim to reduce costs, improve business efficiency, and develop strategic projects, expressed in a variety of government support programs and special tax regimes.

Details about existing government programs for business and investment support reveal the main opportunities for entrepreneurs at both federal and regional levels.

Business and Investment Support Programs

Government business support programs in Ukraine in 2025 focus on attracting foreign investors through tax incentives, grants, and investment memorandums. International partners and grants provide funding for startups, agriprojects, green energy initiatives, and export-oriented companies. COREDO’s experience shows that proper preparation of an investment memorandum and meeting selection criteria significantly increase the chances of obtaining support.

How to Obtain Support and Incentives

To receive government support and tax incentives, it is important to properly prepare the documentation package, conduct preliminary due diligence, and clearly justify the project’s economic feasibility. The COREDO team supports clients at all stages, from application submission to financing receipt and legal support for project implementation. Small and medium business support Ukraine is carried out through specialized programs, including for foreign investors, opening additional opportunities for business scaling.

Conclusions and Advice for Entrepreneurs and Investors

Actionable advice from COREDO:

• For business registration in Ukraine in 2025, prepare an expanded document package, considering KYC and AML requirements, and conduct due diligence on potential partners in advance.
• When entering export markets in the EU and Asia, integrate digital platforms for logistics management and product certification.
• To minimize investment risks, use business risk insurance tools, automated financial monitoring, and regular legal audits.
• Implement ESG approaches and green energy projects to access international grants and investment programs.
• Actively use government support programs, tax incentives, and investment memorandums for business scaling and entering new markets.

COREDO’s practice confirms: a strategic approach, deep understanding of regulatory requirements, and integration of innovative solutions allow not only minimizing risks but also realizing the business potential with Ukraine in 2025.

Expert Analytical Guide-Rating with Practical Review Elements: This format allows me, as the founder of COREDO, to explore the topic of international business registration as deeply and structured as possible. This approach is especially valuable for entrepreneurs, executives, and finance directors who need not only to compare business jurisdictions but also to receive practical recommendations on choosing a country, optimizing tax burdens, undergoing compliance procedures, and opening corporate accounts abroad. The guide with analytics and comparisons saves time, reduces risks, and enables decision-making based on current data and COREDO’s real experience.

Business Registration in Europe and Asia

But behind these figures lies a complex reality: the desire to open a company abroad faces bureaucracy, tax uncertainty, and increasingly stringent AML/KYC requirements.

Indeed, this decision impacts market entry speed, access to international payment systems, asset protection, and even the ability to attract investments.

Here you will find not only answers to typical questions but also solutions for complex tasks modern business leaders face.

How to Choose a Business Jurisdiction

COREDO’s experience shows: choosing a business jurisdiction is a balance between registration speed, cost, tax burden, and compliance requirements. Here are the key criteria we always analyze for clients:

• Registration time and cost. Fast company opening is possible in countries with developed digital state services and transparent procedures. For example, business registration in Europe (Estonia, UK) or company registration in Asia (Singapore, Hong Kong) takes from 1 to 5 days. The cost depends on the country and legal form.
• Document package. Minimum set: charter, information on directors and shareholders, address confirmation, business plan. In some countries (e.g., UAE or Singapore), source of funds confirmation and Due Diligence documents are also required.
• Tax and compliance aspects. It’s important to consider not only corporate tax rates but also tax benefits for new companies, corporate tax features, automatic tax information exchange requirements (CRS, FATCA), AML/KYC standards.
• Requirements for founders and directors. Some jurisdictions (e.g., Singapore or Estonia) require a local director or corporate secretary. In other countries, full remote management is possible.
• Possibility of remote registration. Digitalization of state services and electronic document submission allow opening a company abroad without the founder’s physical presence: this is particularly relevant for international business registration.

Where to Open a Business in Europe and Asia?

Before moving on to a detailed review, here’s a comparison table of key parameters:

Business Registration in Georgia for Expats

Georgia: one of the most attractive jurisdictions for starting international business and IT projects. Business registration in Georgia takes 1-3 days, with almost no minimum share capital, and the document package is minimal. IT companies and startups benefit from special tax regimes (Virtual Zone, Small Business Status), reducing the tax burden to 0-5% under certain conditions.

Important to consider: Despite regulator loyalty, banks conduct thorough AML/KYC analysis, especially for non-residents. COREDO’s practice confirms that well-prepared document packages and transparent beneficiary structures significantly speed up the process.

Digitization of State Services in Estonia

Estonia is a leader in digitizing government services in Europe. Business registration in Estonia is possible entirely online through the e-Residency system: non-residents receive digital identification and can manage a company remotely, sign documents, file corporate reports, and even open accounts in European banks.

For companies targeting the European market, registering a business in the EU through Estonia is a quick and technological route.

Tax Benefits for Businesses in Cyprus

Cyprus is a classical European jurisdiction for international business structuring and tax optimization. Corporate tax is 12.5%, with a dividend and capital gain tax exemption system under certain conditions, as well as double tax treaties with dozens of countries.

Cyprus is particularly appealing for holding structures, international IT companies, and financial services.

Business Registration in Dubai in FEZ

The UAE is one of the most dynamically developing jurisdictions for international business registration. Dubai and other emirates have over 40 free economic zones (FEZ), each offering unique conditions: 0% corporate tax (in most FEZs), no currency control, multi-currency settlements, and the possibility of 100% foreign ownership.

For certain types of activities (financial, brokerage, payment services), licensing and extended AML/KYC compliance are required.

Company Registration in Singapore for IT and e-commerce

Singapore is recognized as a global hub for tech companies, e-commerce, and financial services. Business registration in Singapore takes 1-3 days, with a minimum share capital of 1 SGD, and requirements for founders and directors allow foreigners to own and manage a company remotely with a local director.

Singapore offers preferential corporate taxation (17% with potential reductions for new companies), a developed asset protection system, and access to international payment systems.

Thus, Singapore is the optimal choice for starting and scaling IT projects, and if your company requires multi-currency transactions focusing on the development of Eastern and Southeast Asian markets, consider Hong Kong opportunities.

Hong Kong: Multi-currency Transactions and Asian Markets

Hong Kong is one of the most popular Asian jurisdictions for international business registration. Company registration in Asia through Hong Kong takes 1-5 days, with a minimum share capital of 1 HKD, a corporate tax rate of 16.5%. A feature: the possibility of multi-currency transactions, no currency control, and simplicity in cross-border deals.

Hong Kong is ideal for trade, e-commerce, IT, and financial services targeting Chinese and Southeast Asian markets.

Opening a Company in the UK for Business

The UK is one of the fastest and most transparent jurisdictions for business registration in Europe. Opening a company takes 1-3 days, with a minimum share capital of 1 pound and registration costs starting at 100 pounds. The transparency of the beneficiary structure, automatic tax information exchange, and strict AML/KYC standards make the UK a benchmark for corporate transparency.

The UK is especially appealing for international holdings, IT companies, and startups targeting the European market.

How to Register a Company Quickly?

COREDO’s practice confirms: quickly opening a company abroad is possible only with proper preparation. Here is a step-by-step algorithm:

1. Choose a jurisdiction considering business goals, industry, tax burden, and compliance requirements.
2. Prepare a document package: charter, information on directors and shareholders, address confirmation, business plan, AML/KYC documents.
3. Electronically submit documents via online portals (Estonia, UK, Singapore, Georgia).
4. Appoint a local director/secretary (if required by law).
5. Submit the application and pay government fees.
6. Receive registration documents and a register extract.
7. Open a corporate bank account (often requires a separate document package and due diligence).

The COREDO team helps clients avoid typical mistakes – from incorrect form filling to insufficient structure transparency.

Opening a Corporate Account and Passing KYC

Opening a corporate bank account abroad is one of the most complex stages. Banks in Europe and Asia require:

• A detailed document package: charter, registration documents, information on beneficiaries, business plan, source of funds confirmation.
• Passing compliance procedures: checks according to international AML/KYC standards, automatic tax information exchange (CRS, FATCA).
• Due diligence: analysis of business model, income sources, reputation of the founders.

A solution developed by COREDO includes preliminary compliance audit and preparation for the bank interview, greatly increasing successful account opening chances.

Comparison of Jurisdictions, Risks, and Taxes

For IT, e-commerce, and financial companies, it is essential to consider not only tax rates but also corporate reporting requirements, currency control, asset protection, and profit reinvestment opportunities.

How to Choose a Business Jurisdiction?

Choosing a country for business registration: a strategic decision affecting scaling, access to investments, and asset protection. Selection criteria:

• Business goals: entering new markets, tax optimization, intellectual property protection.
• Industry specifics: activity licensing (financial, IT, trade), corporate structure requirements.
• Reporting and transparency requirements: automatic tax information exchange, AML/KYC standards.
• Possibility of remote management: electronic document submission, e-Residency, online banking.

Successful cases include: registering an IT company in Singapore with subsequent licensing of a payment service, structuring a holding in Cyprus to enter the European market, supporting business registration in Dubai for e-commerce with multi-currency transactions.

Conclusions and Steps for Entrepreneurs

• Registration of a business in Europe and Asia is not just quick company opening but also a strategic scaling tool.
• Prepare a checklist: business goals, industry requirements, tax burden, compliance, document packages.
• Avoid typical mistakes: underestimating compliance, choosing jurisdictions without considering banking requirements, lack of structural transparency.
• Assess the ROI of business registration: consider not only the cost and time but also long-term benefits: asset protection, market access, tax incentives.
• Seek consultation: COREDO’s experience in international business registration, licensing, and compliance is your reliable resource for making strategic decisions.

In 2025, the global metallurgical business under sanctions is experiencing tectonic shifts: according to Worldsteel data, in the past year alone, more than 18% of global metal export transactions have been directly or indirectly restricted, and the overall volume of the EU and NSDC sanctions lists has grown by nearly one-third. Unexpected fact: as a result of new sanctions from the European Commission and synchronized regimes with Ukraine, more than 70% of companies that previously considered themselves “low-risk” are now facing the need for urgent transformation of corporate structures and compliance processes.

Owners, top managers, and compliance officers face a challenge: how to not only survive but also maintain export margins under sanctions, minimize sanction risks for metallurgy, and ensure sustainability under new conditions.

In this article, I, Nikita Veremeev, share the experience of COREDO: we will analyze key changes for metallurgical companies in 2025, show how regulations in the metallurgical business and metallurgy compliance become strategic assets, and offer practical solutions for adapting to the new realities. If you want not just to follow trends but to manage them, I recommend reading the material to the end.

Changes for metallurgy in 2025: sanctions, regulation

Changes for metallurgy in 2025 are largely defined by the tightening of sanctions and increased government regulations from key global economies. New trade restrictions, updated sanctions lists, and regulatory barriers significantly change the working conditions of metallurgical companies, requiring the industry to adapt to new risks and challenges.

Expert summary: what is it?

EU sanctions against Russia: 18th package and Ukraine

The 18th EU sanctions package against metallurgy became the largest in recent years: the EU and NSDC sanctions lists were expanded, new restrictions were introduced on the export of steel, aluminum, rare earth metals, and stricter control over transactions with precious metals and stones was enforced. The synchronization of EU and Ukrainian sanctions means that even transactions through third countries now require deep partner verification and the integration of sanctions lists into business processes.

The COREDO team implemented projects to adapt metallurgical holdings’ corporate structures to new requirements:

In the face of tighter regulation, this requires even more attention to complying with AML and KYC standards, which are becoming an integral part of metallurgical companies’ operations.

AML and KYC requirements in metallurgy

Starting in 2025, updated FATF standards and EU directives on AML for metallurgical companies came into force: now KYC procedures are mandatory for all new partners, as well as regular monitoring of operations with precious metals, investment coins, and bullion.

ESG and supply chain transparency

In 2025, ESG requirements and new reporting standards become mandatory for metallurgical companies operating in the EU, UK, Singapore, and Dubai. International reporting standards require transparency of the corporate structure, disclosure of ultimate beneficiaries, and control of the entire supply chain from ore extraction to the export of finished products.

Metal exports under sanctions: risks and markets

Metal exports under sanctions inevitably face new risks and a forced reorientation of markets. Tough restrictions from the EU and other countries require companies to seek alternative routes and reduce export margins, changing the usual industry structure.

Expert summary: what is it?

Export restrictions: countries, products, banks

Sanctions 2025 metallurgy introduces direct and indirect restrictions on the export of steel, aluminum, nickel, as well as products with high rare earth metals content. Particular attention is paid to the control of counterparty banks in metal transactions:

The COREDO team successfully implemented projects to structure cross-border metal transactions through SPVs and holding companies in the EU and Asia, allowing clients to minimize the risks of payment blocking and maintain access to international supply chains.

Rules for deals with gold and diamonds 2025

Control over transactions with precious metals in 2025 has tightened: now deals with gold, diamonds, investment coins, and bullion require mandatory compliance checks and monitoring of operations with precious metals. New rules for gold and diamond transactions have been introduced, including control of jewelry operations, mandatory disclosure of ultimate beneficiaries, and integration of data into international registries.

Circumventing sanctions: alternative markets

In the context of the 2025 sanctions, metallurgy is actively seeking alternative markets: Asia, Africa, and the Middle East are becoming new centers of demand for metal products. However, schemes for bypassing sanctions in metallurgy require special caution: structuring transactions through “nesting doll” firms, alternative supply routes, and using SPVs must be accompanied by thorough due diligence and legal audits.

Sanctions risk verification: due diligence and automation

Sanctions risk verification today requires not only deep due diligence but also modern automation tools to identify potential threats at the early stages of working with counterparties.

Below are the key stages of comprehensive verification and the role of the expert summary in this process.

Expert summary: what is it?

Sanctions risks for metallurgy in 2025 demand not just formal compliance but comprehensive risk management: from counterparty checks to automation of compliance processes and integration of digital platforms for transaction monitoring.

Counterparty verification, new rules and methods

Counterparty verification metallurgy: a key element of managing sanctions risks. New requirements include mandatory compliance checks for metal transactions, integration of the EU and NSDC sanctions lists, and the use of digital platforms for counterparty verification (e.g., LIGA360).

In one of the implemented COREDO projects, automatic integration of sanctions lists into the onboarding process of new partners was introduced, allowing a client from the Czech Republic to identify potential risks at the preliminary analysis stage of the deal.

Compliance and transaction monitoring automation

Modern compliance tools for metallurgy allow automating compliance processes, monitoring transactions through banks, and integrating AML/KYC procedures. Innovative risk management methods, such as automatic transaction scoring and monitoring operations with precious metals, have become an obligatory standard for companies operating in the EU, Asia, and Africa.

Fines for sanction violations: judicial practice

In 2025, judicial practice on sanction cases in metallurgy expanded significantly: the number of cases of sanction regime violations increased by 40%, and fines for violating new rules reach tens of millions of euros. Special attention is paid to the subsidiary liability of deal participants and the corporate structure of metallurgical holdings.

Business registration in metallurgy under sanctions

In the modern context, business registration in metallurgy faces serious restrictions due to sanctions imposed on key Russian industry enterprises. Understanding the nuances of legal regulation and the specifics of the current sanctions policy becomes critically important for those planning to work in this sector.

Expert summary: what is it?

Thanks to this approach, the chosen jurisdiction and company form will best match business goals, which we will consider further.

Company registration in the EU and Asia

In 2025, the registration of metallurgical companies in the EU and Asia entails the preparation of an extended package of documents: charter, information about ultimate beneficiaries, confirmation of source of funds, licenses for certain activities, and also Opening bank accounts in jurisdictions with a high level of regulation. Requirements for founders have tightened: a check for absence in sanctions lists and confirmation of the legality of capital origin are mandatory.

Tax optimization and business compliance

Tax burden optimization for metallurgical companies in 2025 is impossible without smart corporate structuring: the use of SPVs, holdings, “nesting doll” firms, and transparent ownership schemes allows minimizing risks of subsidiary liability and investment restrictions.

COREDO’s solutions include auditing corporate structure, implementing due diligence, and compliance automation, allowing clients not just reduce tax burdens but also increase transparency for international partners and banks.

Risks of new partners for business

The COREDO team has implemented cases for identifying and eliminating toxic ties in clients’ corporate structures, preventing account blocking, and maintaining access to international markets.

What metallurgical companies should do under sanctions

Sanctions continue to exert significant pressure on metallurgical companies facing new restrictions and challenges in conducting foreign economic activities. In the current situation, it is especially important to understand what metallurgical companies should do under sanctions to maintain business sustainability and find new opportunities for growth.

Expert summary: what is it?

Supply chain transparency: how to meet standards

Supply chain transparency in metallurgy: a key factor in compliance with international reporting standards and ESG.

COREDO implements solutions that allow automating the collection and analysis of data across the entire supply chain, ensuring transparency and compliance with Worldsteel, European Commission, and FATF requirements.

Technological innovations and automation

In one of COREDO’s projects for a client from the UK, an automated system for monitoring metal transactions was implemented, reducing compliance costs by 30% and increasing decision-making speed.

Short-term and long-term ROI strategies

COREDO supports clients at all stages of business scaling: from company registration in new jurisdictions to the implementation of automated compliance solutions and tax burden optimization.

Recommendations for metallurgical companies

Checklist for a metallurgical company

• Conduct an audit of corporate structure and connections to ensure compliance with new sanctions requirements.
• Implement automated platforms for counterparty verification and transaction monitoring.
• Update internal AML/KYC policies and train staff on new standards.
• Ensure supply chain transparency and integrate ESG indicators into reporting.
• Develop a strategy for market diversification and transaction structuring through SPVs and holdings.
• Regularly conduct due diligence on new partners and audit toxic connections.
• Monitor judicial practice and updates of EU and NSDC sanctions lists.

If you wish to receive an individual consultation, conduct an audit, or implement a comprehensive compliance solution: the COREDO team is ready to offer the best practices and tools proven in international markets.

Company Registration in Seychelles for Crypto Business in 2025 is becoming increasingly relevant for startups and investors seeking optimal conditions for international operations with digital assets. Seychelles offers an attractive jurisdiction with modern regulations and a fast company formation process, which is crucial for the rapidly growing crypto market. Below, we will take a closer look at the main advantages of registering a company for crypto business specifically in Seychelles.

Company Registration in Seychelles: Advantages

• Minimal registration timelines: from 1 to 3 days, including preparation of founding documents and opening a corporate account.
• Lenient capitalization requirements: from $25,000, which is significantly lower than in most European jurisdictions.
• Possibility of involving non-residents as shareholders and directors, which is particularly important for international teams.
• Investment attractiveness of offshore: Seychelles offers effective tax optimization strategies, and fiduciary services allow for building a transparent and manageable structure.

Solutions developed at COREDO enable clients to quickly integrate Seychelles structures into international payment systems, accelerating project launches and reducing barriers to entry into Asian and African markets.

Where to Start a Crypto Business: Seychelles, EU, Asia, Africa

Choosing a jurisdiction for a crypto business in 2025 is a strategic question. Analyzing COREDO clients’ experience, we note several key criteria:

• Seychelles: Lenient regulation, fast registration times, moderate economic presence requirements, but moderate reputational risks.
• EU (MiCA): Strict regulatory requirements, lengthy licensing process, minimal reputational risks, but high costs and legal barriers to scaling.
• Asia (Singapore, Hong Kong): High level of banking infrastructure, developed international payment systems, but tightening of AML and KYC procedures.
• Africa (Mauritius, South Africa): Prospects for crypto market development, flexible conditions for non-residents, but limited banking infrastructure.

MiCA: Impact on Crypto Business in the EU

MiCA introduces unified rules for crypto business in the EU, significantly impacting the regulation and operation of the industry. The new approach is aimed not only at increasing transparency and protecting investors but also at creating a stable environment for developing digital assets and services. Below, we examine the main MiCA requirements for crypto companies and their practical implications for business in Europe.

MiCA Requirements for Crypto Companies

Markets in Crypto Assets Regulation (MiCA) is a new regulatory standard for crypto assets in the EU that came into effect in 2025. To get licensed, crypto companies must:

• Ensure transparency of the beneficial ownership structure.
• Implement strict KYC/AML procedures and customer identification technologies.
• Prepare internal policies for risk management, asset protection, and reporting.
• Comply with FATF standards and capital requirements (at least €125,000 for providers of crypto asset services).
• Appoint resident directors and ensure real economic presence.

The COREDO team has implemented projects preparing crypto companies for licensing in the EU, and I can note: the level of compliance risks and the cost of support within MiCA are significantly higher than in offshore jurisdictions.

Banking Requirements and Sanctions

Since 2024, European banks have tightened checks when opening accounts for crypto businesses. Among the new requirements:

• Verification of the source of funds and corporate structure transparency.
• Mandatory availability of multi-currency accounts and integration with international payment systems.
• Increased attention to sanction risks and the origin of beneficiaries.

In this regard, the role of regulation and AML requirements for crypto business in Seychelles becomes key as of 2025.

Seychelles Crypto License and AML in 2025

Seychelles Crypto License and AML in 2025 become key concepts for those planning to launch or expand a crypto project in this jurisdictional center. The new rules place special emphasis on business transparency and AML standards compliance, which requires serious preparation for obtaining a license and ongoing compliance with requirements.

Obtaining a Crypto License in Seychelles in 2025

COREDO’s experience shows that obtaining a crypto license in Seychelles in 2025 involves the following stages:

1. Preparation of a business plan and internal AML/KYC policy, the document must reflect the specifics of crypto services, funding sources, and anti-money laundering measures.
2. Collecting and submitting documents: founding documents, information about beneficiaries, confirmation of economic presence (office, resident director).
3. Developing technical infrastructure: ensuring the security of storing and transferring digital assets.
4. Liability insurance is recommended to reduce operational and legal risks.
5. Submitting an application to the regulatory body and undergoing AML checks.

Requirements for Economic Presence and Management

From 2025, banks and regulators in Seychelles tightened control over the economic substance of companies. For successful account opening and obtaining a license, it is required:

• A physical office in Seychelles.
• Appointment of a resident director.
• Maintaining corporate documentation and reporting in accordance with local laws.
• Transparency of the beneficial ownership structure.

AML for Offshore Companies: FATF Standards

Compliance with FATF standards and the implementation of effective KYC/AML procedures is key to business sustainability in Seychelles. COREDO recommends:

• Using modern client identification technologies (video-KYC, biometrics).
• Regularly updating internal AML policies and training staff.
• Conducting independent compliance audits.
• Implementing transaction monitoring systems and automated reports for regulators.

Opening an Account in Seychelles 2025: Challenges and Solutions

Opening an account in Seychelles in 2025 involves a number of specific challenges that need to be considered in advance. With the tightening of document checks and compliance procedure requirements, many entrepreneurs are seeking effective solutions for successfully navigating banking procedures and minimizing rejection risks.

Reasons for Rejections and How to Avoid Them

In 2025, the tightening of banking requirements in Seychelles led to an increase in the number of account opening rejections. The most common reasons:

• Insufficient transparency of the company’s structure and beneficial ownership.
• Absence of actual economic presence.
• Non-compliance of internal AML/KYC policies with bank standards.
• Suspicions of sanction circumvention or operations with high-risk countries.

Banking Infrastructure in Seychelles and Competitors

Seychelles banking infrastructure offers flexibility but requires special attention to compliance. In comparison with Hong Kong:

• Seychelles: More lenient conditions for non-residents, but higher risk of account freezes with insufficient compliance.
• Hong Kong: Developed banking system, integration with international payment systems, but stricter checks and longer account opening process.

Risks of Registering a Crypto Business in Seychelles

Risks of registering a crypto business in Seychelles go far beyond standard legal formalities; it is a whole set of new challenges related to tightening legislation, compliance requirements, and changes in crypto industry regulation. It is important for entrepreneurs to understand how potential barriers may affect investment efficiency to properly evaluate ROI when choosing this jurisdiction.

Efficiency Metrics and ROI When Choosing Jurisdiction: How to Calculate?

To assess the efficiency of jurisdiction selection, COREDO uses a set of metrics:

• Speed of business registration and launch.
• Total costs of Licensing and support.
• Availability of banking and payment tools.
• Return on Investment (ROI) – compared to the EU, ROI when choosing Seychelles is higher due to low operational costs and quick market entry.
• Scalability flexibility, opportunity to open branches and integrate into international payment systems.

Scaling: Prospects and Risks

Business scaling through Seychelles structures is possible, provided that international AML/KYC standards are met and regulatory changes are continuously monitored. Among the long-term risks:

• Possible legislative changes in the EU and tightening control over offshore companies.
• Reputational risks associated with the perception of offshore jurisdictions.
• Restrictions on access to some international payment systems.

Seychelles or MiCA for Crypto Business in 2025

In 2025, the crypto business faces the choice of operating under MiCA rules in the European Union or focusing on more flexible regimes, such as in Seychelles. Differences in regulation directly influence licensing requirements, compliance, and access to global markets. How to minimize compliance risks when choosing between these jurisdictions?

How to Reduce Compliance Risks?

• Conduct a preliminary audit of the corporate structure and beneficial ownership.
• Develop and implement internal AML/KYC policies per FATF standards.
• Ensure a real economic presence (office, resident director, local reporting).
• Prepare a complete set of documents for the bank and regulator.
• Use modern client identification technologies.
• Regularly update compliance procedures and undergo independent checks.
• Implement corporate governance tools and fiduciary services to enhance transparency.

Seychelles or MiCA: Comparison of Conditions

Conclusions and Recommendations for Business

Seychelles in 2025 is not just an offshore alternative to MiCA but a strategic tool for quickly launching and scaling a crypto business considering current regulatory and banking trends. COREDO’s experience shows that with the competent implementation of compliance strategies, the adoption of modern AML/KYC procedures, and transparency in corporate structure, risks can be minimized, and advantages can be capitalized on.

COREDO’s team is ready to offer comprehensive solutions tailored to your business’s specifics and provide reliable support in implementing international projects.

Offshore jurisdictions are special territories with a distinct economic status that offer companies significant tax benefits and simplified business regulations. Let’s delve deeper into what offshore zones and companies are, the tasks they solve, and why they are in demand among international businesses.

Offshore Zones and Companies – What Are They?

Offshore Requirements in 2025

Offshore Regulation in 2025 – Main Trends

Offshore regulation in 2025 faces unprecedented strengthening of transparency and control requirements. Key trends include the implementation of international standards for beneficiary disclosure, the expansion of automatic financial information exchange, and new requirements for the real presence of companies in offshore jurisdictions. These changes are designed to enhance business legitimacy and minimize the risk of abuses.

Disclosure of Beneficiaries According to International Standards

COREDO’s solution for clients with holding structures includes a multi-level system for controlling data relevance and automating beneficiary checks when the ownership structure changes.

Financial Reporting of Offshore Companies

In one of COREDO’s cases for an IT company with offices in Singapore and Dubai, we implemented an integrated platform for corporate reporting preparation, which not only aligned with new standards but also increased transparency for banks and investors.

Economic Presence and Substance Requirements

For international holdings and investment funds, we develop individual corporate governance models ensuring compliance with substance requirements and minimizing cross-border taxation risks.

Compliance and AML in Offshores

The COREDO team has implemented comprehensive compliance procedures for clients working in fintech and crypto services, allowing them to not only pass bank compliance but also to reduce the risks of being blacklisted.

Next, let’s examine the best offshore jurisdictions that remain relevant and attractive for international business in 2025.

Best Offshore Zones 2025

choosing a jurisdiction for company registration directly affects asset security and the efficiency of tax burdens. The best offshore zones of 2025 offer special conditions for international business, from flexible corporate procedures to modern regulation and reputation on the global market. Next, let’s understand how to navigate the diversity of offshore directions and choose the best option for your business.

How to Choose an Offshore Zone for Business

Managing reputational risks becomes an integral part of corporate support for offshores, especially for companies working with international contractors and investors.

Offshore Jurisdictions 2025, Comparison

Offshore Zones for IT and Investment Funds

For investment funds and trusts, Cyprus, Mauritius, and the British Virgin Islands are relevant due to the flexibility of regulation and support for international agreements (DTAA, TIEA).

Offshore Company Registration: Step by Step

Offshore Company Registration: Step by Step: this is a sequential process that includes choosing a country, preparing documents, and interacting with a registration agent. At each stage, it’s important to consider the nuances of the chosen jurisdiction’s legislation, as the correct document preparation depends on the successful start of the offshore business.

How to Choose a Registration Agent and Prepare Documents

Registration of an offshore company begins with the preparation of a document package: founding documents, information about beneficiaries, address and identification confirmation, business plan (for some jurisdictions).

In a COREDO case on registering a company in Belize in 2025, we provided the client with full support, from document collection to interacting with local registrars and implementing digital tools for monitoring legal changes.

Open an Offshore Company Account

The COREDO team assists clients in the account opening stage by providing financial monitoring and preparing all necessary documents for bank compliance procedures.

Compliance and Reporting for an Offshore Company

COREDO’s practice has shown that implementing digital platforms for managing reporting and compliance allows clients not only to meet new requirements but also to scale their business without additional risks.

Risks and Sanctions in Offshore Business

Risks and sanctions in offshore business today are becoming increasingly significant for companies working with foreign jurisdictions and complex financial schemes. International legislation is tightening, transparency requirements are growing, and violations can lead to financial losses and serious legal consequences. To understand how these threats are formed, it is important to delve into the concepts of **”black” and “gray” lists** and their role in assessing offshore activity risks.

Black and Gray Lists: What They Are and Why They Are Needed

COREDO’s solution: regular auditing of corporate structures, automated monitoring of changes in lists, and the integration of income legalization procedures through offshores within the framework of international standards.

Risks of Using Offshores for Business

To minimize risks, the COREDO team implements a multi-level due diligence system, corporate governance considering business mobility, and the sustainability of offshore models to legal changes.

Offshore Jurisdictions: Trends and Alternatives

Offshore jurisdictions today face new trends: increased transparency requirements, stricter international standards, and shifting focus to legal and legitimate business schemes. These changes create a demand for alternatives to classic offshores and spark interest in modern regulatory arbitration strategies, where the balance between tax optimization and compliance with global rules is crucial.

Alternative to Offshores and Regulatory Arbitration

At COREDO, we observe a growing interest in jurisdictions with transparent tax systems and flexible conditions for corporate structuring, allowing legal tax optimization and risk management.

Automation of Offshore Business

COREDO implements digital platforms for clients, integrating KYC, financial monitoring, and corporate reporting, allowing the management of structures in different jurisdictions from single interface and ensuring corporate mobility.

Recommendations for Entrepreneurs and Managers

Checklist for choosing a jurisdiction:

• Evaluate the requirements for substance and economic presence.
• Check current standards for AML, KYC, and due diligence.
• Ensure the availability of developed banking infrastructure.
• Analyze the risks of being blacklisted and the consequences of sanctions.
• Evaluate opportunities for reporting automation and corporate governance support.

How to Ensure Compliance with New Requirements:

• Implement digital compliance procedures and regular audits.
• Ensure transparency of ownership structure and beneficiary disclosure.
• Use services of professional corporate service providers.

How to Minimize Risks and Increase ROI:

• Regularly update the corporate structure considering legislation changes.
• Invest in reporting and compliance automation.
• Manage reputational risks through transparency and compliance with international standards.

Key Conclusions and Advice

For legal and effective use of offshore structures, I recommend:

• Choosing jurisdictions with a stable reputation and flexible conditions for real business.
• Integrating automation and digitalization into compliance and corporate governance processes.
• Regularly conducting due diligence and monitoring changes in international standards.

Why does this happen? Firstly, Panama’s cryptocurrency legislation does not mandate licensing for most activities involving virtual assets unless the company works directly with Panama residents. This allows businesses to launch without MiCA and without needing expensive and complex licenses like in the EU. Secondly, Company Registration offshore is entirely possible remotely, which is particularly relevant for international teams and digital nomads.

# Cryptocurrency License and Licensing Features in Panama

# Panama’s Tax System and Financial Infrastructure

Panama’s banking infrastructure is developing, although opening accounts for crypto businesses requires meticulous KYC dossiers and internal audits. Tax optimization strategies developed by the COREDO team allow for bank account integration in the EU or Asia using the Panamanian structure as a holding or operational company.

Actionable insights:

• To successfully launch a crypto company in Panama, prepare an AML/KYC document package, choose an optimal corporate structure, and pre-agree on a banking account opening strategy.
• Pay attention to the need for regular internal audits and reporting to maintain business transparency and minimize account blocking risks.

MiCA: Crypto Business Requirements

# Key Requirements and Provisions of MiCA for Crypto Companies

For many fintech companies and startups, this means the need to revise business models, increase share capital, and implement new digital identification technologies. EU regulatory requirements are aimed at protecting investors’ interests but also significantly increase costs and timelines for launching a crypto project.

# Costs and Licensing Timelines Comparison in MiCA and Panama

# MiCA Risks and Limitations for International Scaling

Actionable insights:

• When choosing between MiCA and Panama, consider not just costs and timelines but also strategic goals: if access to EU institutional investors is essential, a CASP license is mandatory.
• For flexible scaling and cost optimization – an offshore jurisdiction for crypto (Panama) might be a more effective solution.

Panama or EU (MiCA): Where to Open a Crypto Business?

# Comparison Table: Key Parameters of Panama and MiCA for Crypto Business

# Practical Cases of Entering EU and Asian Markets via Panama

Actionable insights:

• When choosing a jurisdiction for a crypto business, consider not only direct costs but also scalability possibilities, banking service integration, and reputational risk management.
• Panama: an efficient tool for entering EU and Asian markets, especially with the proper integration of AML/KYC and internal control.

Compliance and AML for Crypto Business in the EU and Panama

# How to Ensure Compliance with International FATF Standards in Panama

Best practices for AML for companies in Panama include implementing a risk-based approach, regular internal audits, automating KYC processes, and integrating digital identification technologies.

# Internal Control, Reporting, and Risk Management

Actionable insights:

• Invest in the automation of KYC and AML processes to ensure long-term business sustainability and transparency.
• Regularly update internal control policies in line with international requirements and trends.

Launching a Crypto Company in Panama

# Step-by-Step Guide to Registering a Crypto Company in Panama

1. Prepare the corporate structure: define founder composition, share distribution, choose the optimal model (holding, operating company).
2. Gather and prepare documents: articles of association, KYC dossier, AML policy, address confirmation, and identification of beneficiaries.
3. Submit application and registration: fully remote company opening through accredited agents.
4. Implement compliance procedures: develop and implement internal AML/KYC policies, staff training.
5. Receive corporate documents: registry extract, registration certificate, corporate seal.

# How to Open a Bank Account and Integrate Payment Services

# Scaling the Business and Entering International Markets

Actionable insights:

• Prepare an extensive KYC dossier and business plan for account opening.
• Use the Panamanian structure for holding and operational tasks, integrating banking services in the EU and Asia.

Thus, competent planning of corporate and banking infrastructure forms a solid foundation for sustainable development of a crypto company in Panama and the minimization of operational risks: let’s further explore key risks and prospects of working with cryptocurrency in the jurisdiction.

Cryptocurrency in Panama: Risks and Prospects

# Potential Regulatory Changes and Their Impact on Business

# Reputational and Operational Risks for Companies and Investors

Actionable insights:

• Stay informed about legislative changes and adapt internal processes in advance.
• Invest in systems for managing reputational and operational risks.

Conclusions and Recommendations for Business

1. Goals and Strategy Analysis: Determine your priority – launch speed, cost optimization, or access to EU institutional investors.
2. jurisdiction selection: if flexibility, speed, and tax benefits are critical: Panama as an alternative to MiCA will be the optimal choice; for working with large EU investors, a CASP license is mandatory.
3. Document Preparation: Pre-prepare a full package of KYC/AML documents, business plan, and ownership structure.
4. Compliance and Internal Control: Implement automated AML/KYC systems, conduct regular internal audits, and invest in team training.
5. Scaling and Integration: Use the Panamanian structure for international scaling, integrate banking services in the EU and Asia.
6. Risk Management: Monitor regulatory changes, ensure corporate structure transparency, and build trust with investors through regular reporting.

In 2024, global markets were shocked by statistics: in the EU and Asia alone, fines for AML violations exceeded $7 billion, and the number of account blocks increased by 28% compared to the previous year. In Africa, regulators applied criminal liability to top management for the first time for failing to comply with international AML standards.

Why do even experienced companies with a developed internal control system find themselves on the list of violators?

In this article, I will analyze six of the most common mistakes for which international business receives AML fines and show how the COREDO team helps companies minimize these risks. If you want to understand how to avoid strategic missteps, build reliable corporate compliance, and ensure long-term business sustainability: I recommend reading to the end.

AML: Common Mistakes and Business Fines

AML: common mistakes and business fines are not only legal nuances but also real financial and reputational risks for companies of any scale.

Let’s look at common violations and examples of how businesses encounter problems even at the client acquaintance stage.

KYC and CDD Identification Errors

In 2025, EU and Asia regulators note that up to 40% of all fines for AML violations are related to insufficient KYC and CDD.

COREDO’s practice has seen cases where a company, working with clients from several countries, used outdated KYC checklists and did not track updates to sanction lists. As a result: account blocks and a fine of 2% of annual turnover.

Special attention should be paid to automating AML processes: manual data processing no longer meets regulator requirements.

Monitoring and Reporting on Suspicious Transactions

Transaction monitoring is a key element in combating money laundering, but it is here that strategic AML compliance mistakes most often manifest.

In one COREDO case, an international payment company faced a license suspension due to a delay in submitting a SAR for a suspicious transaction amounting to $500,000. Only prompt interaction with the regulator and the implementation of an AI-based automated monitoring system allowed operations to resume and criminal liability to be avoided.

COREDO practice confirms: Integrating AML systems with machine learning capabilities allows for real-time anomaly detection and reporting that meets FATF standards and EU AML directives.

Errors in Working with High-Risk Clients

Working with high-risk clients and jurisdictions is an area of increased attention for regulators in the EU, Asia, and Africa. The main AML mistakes here are a formal approach to EDD, lack of documented risk assessment, and insufficient transparency of ownership structure.

The recommendation based on COREDO’s experience is to implement a multi-level verification process, including automated beneficiary checks, regular business process audits, and mandatory risk assessment for all new high-risk region clients.

Thus, insufficient attention to details in AML procedures can lead to serious consequences and highlights the importance of strengthening corporate compliance.

Gaps in Corporate Compliance

In COREDO practice, there have been situations where the formal presence of a compliance officer and internal regulations was not accompanied by actual employee training and top management involvement. As a result, strategic AML compliance mistakes, ineffective risk management, and fines for non-compliance with procedures occurred.

Developing a compliance culture requires a systematic approach: regular employee training, strategic compliance implementation, staff motivation to adhere to standards, and constant communication between departments.

Data Storage Violations for AML

EU and Asia regulators have tightened data storage and documentation requirements for AML: companies must not only collect but also ensure business structure transparency, synchronize with international regulators, and be ready for sudden audits. In one COREDO case, a client faced account blocks due to untimely documentation submission for transactions from the previous three years.

Advice from COREDO: automate documentation processes, implement internal control systems, and regularly audit business processes for AML compliance.

New Regulatory Requirements in the EU and Asia

2025 is marked by major changes in international AML standards: new EU directives have come into force, FATF recommendations have been updated, and corporate responsibility requirements in Asia and Africa have been tightened.

In COREDO practice, there have been cases where a company from the EU received a large fine for non-compliance with new transaction monitoring automation requirements effective January 2025.

The solution developed at COREDO: continuous monitoring of legislative changes, integration of new requirements into business processes, staff training, and regular interaction with regulators.

Thus, insufficient flexibility in adapting AML procedures is fraught with not only financial but also reputational risks for international business: next, let’s examine specific cases of fines and their consequences.

AML Fines: Cases and Consequences

AML fines: these are not only financial losses but also account blocks, license suspensions, criminal liability, and long-term reputational risks.

Major Fines and Violations 2024–2025

How to Avoid AML Fines in Business

Avoiding AML fines in business is becoming increasingly challenging: regulators tighten control, and penalties for violations reach millions and include account blocks and license revocations. To avoid being hit, it is important not only to formally comply with requirements but also to implement real, effective procedures focusing on automation and a risk-based approach.

Automation and Risk-Based Approach in AML

Effective implementation of a risk-based approach is key to reducing errors in client onboarding and transaction monitoring. COREDO’s experience shows that automating AML processes using AI and machine learning not only speeds up data processing but also improves the accuracy of detecting suspicious transactions.

Recommendation: assess the ROI from new technologies, integrate AML systems with internal platforms, and regularly update monitoring scenarios according to current risks.

Compliance Training for Personnel

Compliance culture begins with training: regular AML regulatory training, interactive courses for distributed teams, and involving compliance officers in strategic planning.

Advice: build a motivation system for staff, implement compliance maturity metrics, and ensure constant communication between departments.

Choosing an AML Provider and Working with Regulators

Choosing an AML audit and legal support provider is a strategic decision for international business. COREDO’s practice confirms: only comprehensive AML support, including client due diligence, business process auditing, synchronization with international regulators, and business structure transparency, allows minimizing fine risks and simplifies interactions with supervisory bodies.

Recommendation: build long-term relationships with the provider, regularly update internal procedures, and prepare the company for sudden AML audits.

Key Recommendations for Entrepreneurs

Key recommendations for entrepreneurs will not only increase business efficiency but also minimize legal and financial risks.

Below are the main steps to help avoid problems and protect your business.

How to Avoid AML Fines

• Regularly update KYC and CDD procedures, use automated solutions for client checks, and sanction list monitoring.
• Implement a multi-level risk-based approach for high-risk clients and jurisdictions.
• Integrate AML systems with AI and machine learning capabilities for transaction monitoring and reporting.
• Create a compliance culture through staff training, motivation, and top management involvement.
• Ensure business structure transparency and preparedness for sudden AML audits.
• Synchronize internal procedures with current FATF, EU directives, and national regulator requirements.

Practical Tips

• In case of a sudden AML audit: promptly collect and provide all documents on KYC, CDD, SAR, and internal control. Appoint a responsible person for regulator communication.
• Prepare documents: store all client and transaction data digitally, ensure backup, and quick archive access.
• Respond to regulator requests: act transparently, provide complete information, and document all interaction stages.

AML Compliance Strategy for Business 2025

COREDO’s experience shows: only a systematic approach, including automation, training, auditing, and transparency, minimizes reputational and financial risks, ensures long-term sustainability and business investment appeal. In the context of tightening regulatory requirements in the EU, Asia, and Africa, comprehensive AML support is becoming not an option but a strategic necessity for any international enterprise.

“90% of new financial companies in Europe choose jurisdictions with the most transparent regulation, and only 7% of them successfully pass Licensing on their first attempt.” These figures don’t just surprise: they highlight how complex and competitive the international financial services environment is today.

In recent years, Malta has transformed into one of the most sought-after financial hubs in the EU: banks, investment funds, fintech and blockchain companies, insurance, and trust structures are being established here. But behind the attractive opportunities lie challenges: the Malta Financial Services Authority’s (MFSA) licensing, compliance, and corporate governance requirements are among the strictest in Europe.

How to navigate the path from registering a legal entity to obtaining an MFSA license, build a reliable AML system, implement best corporate governance practices, and avoid common mistakes? Why has the Maltese financial regulator become a benchmark of transparency and innovation for the entire EU?

Powers of MFSA in Malta

Powers of MFSA in Malta cover the regulation and supervision of all sectors of the country’s financial market – from banks and investment companies to insurance organizations and new fintech players. The MFSA does not just perform the functions of a regulator but also strives to ensure consumer protection and market transparency, actively contributing to the development and improvement of the financial industry.

Functions and tasks of MFSA

Malta Financial Services Authority is the sole integrated regulator of the country’s financial sector, responsible for licensing, supervision, and development of all market segments: banks, investment companies, insurance organizations, pension schemes, management companies, and providers of virtual financial assets (VFA).

COREDO’s practice confirms: the MFSA’s systematic approach to compliance and corporate governance allows Malta to maintain its status as one of the most resilient financial hubs in the EU.

Collaboration of MFSA with other countries

The MFSA is actively integrated into the European and global financial regulation system. The regulator participates in working groups of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the International Organization of Securities Commissions (IOSCO).

MFSA Requirements for Financial Companies in Malta

MFSA Requirements for Financial Companies in Malta represent a strictly regimented set of conditions that must be met to start and conduct financial activities on the island. The MFSA places special emphasis on transparency, company stability, and compliance with international standards, which is reflected in the list of requirements for obtaining a license and continuing operations.

MFSA License for Companies in Malta

obtaining a license MFSA: a multi-stage process requiring a deep understanding of local and European regulations. The COREDO team has implemented dozens of projects for licensing banks, investment companies, payment institutions, VFA providers, and insurance intermediaries.

Key stages include:
– Defining the optimal corporate structure (e.g., Private Limited Company, ICC, PCC) considering requirements for transparency of beneficiaries and risk management.
– Preparation of document package: business plan, AML/KYC policy, internal Due Diligence procedures, description of IT infrastructure, financial model.
– Checking compliance with minimum requirements for capital, experience, and reputation of directors (fit and proper test).
– Submitting an application to the MFSA, undergoing interviews and inspections, and liaising with the Malta Business Registry (MBR).
– Obtaining the license and integration into the financial monitoring system.

Regulation of Banks, Investment Companies, and Insurers

Regulation of banking activities in Malta is built on principles of stability, transparency, and integration with European standards. The MFSA imposes specific requirements on reserves, internal controls, risk management procedures, and banks’ corporate structures.

COREDO’s experience has shown that adapting internal policies to MFSA requirements during document preparation significantly accelerates the licensing process and reduces the risk of rejection.

Registering a Company in Malta through MBR

step-by-step registration guide:
– Reserving a unique name through MBR.
– Preparing the charter, appointing directors and a secretary, and determining the legal address.
– Depositing the authorized capital into an account in a Maltese bank.
– Submission of the document package to MBR, receiving a registration number and an excerpt.

Special identification and Due Diligence procedures are provided for non-residents and international holdings, including confirmation of the source of funds and compliance with AML standards.

AML Compliance: MFSA Standards

AML Compliance: MFSA standards are a system of regulatory requirements aimed at enhancing transparency and security in the financial services sector. For fintech companies, compliance with AML and KYC standards of the MFSA becomes a decisive condition not only for legal operations but also for strengthening trust with clients and regulators.

MFSA Requirements for AML and KYC for Fintech Companies

The MFSA implements some of the strictest AML compliance requirements in the EU. Financial and fintech companies must develop and implement comprehensive KYC procedures, conduct regular Due Diligence of clients, monitor transactions, and identify suspicious operations.

MFSA’s Control over AML Compliance

MFSA conducts regular and unscheduled checks, analyzes companies’ internal policies and reporting, and holds interviews with compliance officers. The audit includes an assessment of the effectiveness of KYC procedures, transaction monitoring, staff training, and incident management.

Thus, proper adherence to MFSA requirements becomes a key factor for market participants, especially in the rapidly developing fintech and cryptocurrency sectors.

Regulation of Fintech and Cryptocurrencies

Regulation of Fintech and Cryptocurrencies is becoming an increasingly significant factor for the development of innovative financial services and digital assets. The emergence of new technologies requires finding a balance between supporting innovations and the necessity to minimize risks for the market and consumers. In modern conditions, key issues include the principles of VFA regulation and the specifics of running a crypto business.

Regulation of VFA and Crypto Business

Malta: one of the first countries in the world to introduce a separate regulation regime for virtual financial assets (VFA). The VFA Act and corresponding MFSA rules cover the licensing of cryptocurrency wallet providers, exchanges, ICO/IEO platforms, and other blockchain projects.

RegTech and Digital Compliance

The MFSA actively implements RegTech solutions, allowing for the automation of data collection, analysis, and storage for compliance, transaction monitoring, and report preparation. In several cases, the COREDO team implemented digital KYC platforms for clients, enabling remote client identification and reducing operational costs.

Structures ICC, PCC, RICC, and Securitization

Structures ICC, PCC, RICC, and Securitization are at the heart of modern financial and legal solutions, providing flexibility and protection of business interests. These tools enable the organization of specialized companies and the implementation of innovative services in practice.

Services of Specialized Companies: Where They Are Applied

Malta offers unique corporate structures: Incorporated Cell Companies (ICC), Protected Cell Companies (PCC), Recognised Incorporated Cell Companies (RICC), and Securitisation Cell Companies. These forms are used to create investment funds, insurance platforms, securitization structures, and trust management of assets.

Advantages:
– Separation of assets and liabilities between cells, which reduces risks for investors.
– Flexibility of corporate governance and the ability to scale without creating separate legal entities.
– Application for collective investment schemes, insurance intermediaries, M&A in the financial sector.

Legal and Compliance Risks in Creating Structures

The creation of ICC, PCC, or RICC requires special permission from the MFSA, the development of internal risk management and compliance policies, and adherence to information disclosure and financial reporting requirements. COREDO’s practice has shown that proper corporate structure setup and transparent interaction with the regulator can optimize taxation and protect investor interests.

Transparency and Investor Protection by MFSA

Transparency and investor protection: core priorities of the MFSA aimed at maintaining trust in Malta’s financial market and minimizing risks for depositors. MFSA’s supervisory and regulatory mechanisms ensure that companies adhere to strict reporting standards and disclose all necessary information to investors promptly.

Next, we will explore how transparency and reporting requirements are implemented for companies under MFSA supervision.

Transparency and Reporting of MFSA Companies

The MFSA requires all licensed companies to regularly submit financial reports, conduct external audits, and disclose information about beneficiaries and the corporate structure. Electronic platforms and automated data analysis systems are used for control.

Investor and Consumer Protection

The MFSA implements best practices for corporate governance, including mandatory independent directors, audit and compliance committees, internal control, and decision-making transparency. Compensation schemes, dispute resolution mechanisms, and risk minimization tools are in place for investor protection.

Interaction of MFSA with Foreign Regulators

The interaction of the MFSA with foreign regulators plays a crucial role in ensuring transparency and effective oversight in the international financial market. To achieve this, the MFSA actively develops cooperation with foreign supervisory bodies, implements common standards, and participates in cross-border regulatory initiatives.

The Role of MFSA in International Standards

The Maltese financial regulator actively participates in the development and implementation of international standards in collaboration with EBA, ESMA, IOSCO, and FATF. MFSA collaborates with regulators from other countries for data exchange and investigations, which is especially vital for companies offering cross-border financial services.

This interaction ensures a high level of trust in the country’s financial sector and creates favorable conditions for investment activity within the Maltese jurisdiction.

Impact of MFSA on Investments in Malta

The MFSA shapes the country’s investment climate through transparent rules, regulatory predictability, and innovation support. An MFSA license opens access to EU markets, enhances partner and investor trust, and reduces barriers to business scaling.

Business Recommendations: What You Need to Know

In modern entrepreneurial conditions, acting randomly is increasingly risky. Business Recommendations: What You Need to Know will help you not only avoid typical mistakes but also build a development strategy considering current market trends and the specifics of your segment. The following algorithm will guide you on what to pay particular attention to at each stage.

Business Action Algorithm

1. Evaluate strategic goals and choose the optimal corporate structure (PCC, ICC, standard company).
2. Prepare a business plan, AML/KYC policy, internal regulations, and financial model.
3. Conduct preliminary Due Diligence and gather a document package for submission to MFSA and MBR.
4. Implement RegTech solutions for compliance automation and report preparation.
5. Complete licensing, set up internal control, and train personnel.
6. Regularly update internal policies considering new MFSA requirements and European standards.

Main Risks and Mistakes in Working with MFSA

– Underestimating the requirements for transparency of structure and capital sources.
– Lack of automated AML/KYC procedures and transaction monitoring.
– Inadequate preparation for MFSA interviews and inspections.
– Ignoring updates to EU legislation and special regulatory initiatives.

How to Choose a Business Partner in Malta

Key criteria: experience working with the MFSA, licensing and compliance expertise, understanding of international structures’ specifics, access to RegTech solutions, and support at all stages, from registration to auditing and reporting.

MFSA and Regulation of Financial Services in Malta

What strategic advantages does an MFSA license provide for entering the EU market?
An MFSA license is recognized in all EU countries, provides access to European financial markets, increases investor and partner trust, and reduces barriers to business scaling.

What types of licenses does the MFSA issue?
The MFSA licenses banks, investment companies and funds, insurance organizations, VFA providers, payment institutions, trust, and fiduciary companies.

What are the requirements for corporate structure?
Transparency of beneficiaries, a resident director, corporate secretary, internal control, and compliance, as well as meeting minimum capital requirements are required.

How does the MFSA ensure investor protection?
Implements compensation schemes, mandatory information disclosure, corporate governance control, and dispute resolution mechanisms.

Comparison of MFSA and European Regulatory Bodies’ Requirements

If you are considering Malta as a strategic entry point to the EU market, COREDO’s experience and deep understanding of working with the MFSA will not only help you through all stages of licensing but also build a sustainable, transparent, and competitive business model in one of Europe’s most dynamic financial hubs.

In 2025, the cost of choosing the wrong jurisdiction for an IT company may not only be measured in millions of euros but also in lost scaling opportunities, account blockages, or the inability to attract investments. According to Gartner data, more than 60% of international IT companies have faced payment blocks or banking service refusals due to non-compliance with new compliance and AML requirements. Even more alarming is the statistics on tax burdens: in 2024, the average effective tax rate increase for IT businesses in “unsuitable” jurisdictions amounted to 18% due to the tightening of global information exchange rules (CRS), substance requirements, and CFC.

Why do some IT companies attract venture capital and go public, while others are forced to change their country of registration, losing benefits and reputation? How to choose a country for registering an IT company in 2025 so that the business not only meets international standards but is also prepared for future challenges: from ESG to cryptocurrency regulation?

How to Choose a Jurisdiction for an IT Company

choosing a jurisdiction for a business is a strategic step that affects the tax burden, market access, investment attractiveness, and even the cost of company ownership. COREDO’s practice confirms: there are no universal solutions, but there are clear criteria that allow selecting the optimal country for registering an IT company abroad.

Tax Benefits for IT Companies
In 2025, tax optimization for IT companies goes beyond simply comparing rates. Key significance is given to tax benefits for IT companies (such as incentives for R&D, IP Box regimes), specific tax residency requirements for IT businesses, and double taxation avoidance agreements. It’s important to consider transfer pricing, CFC, and substance requirements, with real presence demands becoming stricter in the EU, the UK, and Singapore.

• The COREDO team has implemented projects where smart structuring accounting for international financial reporting standards (IFRS) and jurisdictional investment attractiveness allowed clients to reduce their tax burden by 20-30% without losing benefits when changing the country of registration.

Compliance and AML for IT Business 2025
Modern IT businesses face growing compliance and AML requirements. Automatic CRS information exchange, KYC/AML procedures, FATF recommendations, and new AML standards demand not only transparency but continuous monitoring. A solution developed at COREDO allows the integration of compliance procedures into the corporate structure, minimizing compliance risks and ensuring adherence to banking and investor requirements in different countries.

Licensing and Regulation of IT, Fintech, Cryptocurrencies
For fintech and crypto companies, Licensing becomes a key factor. In 2025, the best countries for registering a fintech startup offer not only fintech licensing but also access to regulatory sandboxes, simplifying the launch of new products. The COREDO team has supported licensing for cryptocurrency and payment companies in Lithuania, Singapore, Estonia, and UAE, considering legal opinion nuances, capital requirements, and startup visas.

Corporate Structure and Reporting
The corporate structure for international IT projects must be not only flexible but also compliant with corporate reporting, reporting automation, and IFRS standards. It’s important to assess capital requirements, corporate reporting automation capabilities, and the availability of corporate secretarial services. COREDO’s experience shows: efficient corporate governance can reduce service costs and increase investor transparency.

Intellectual Property and GDPR: How to Protect?
Choosing a jurisdiction for an IT company directly affects intellectual property protection, trademark registration, and GDPR compliance. International shareholder rights protection, trademark registration, and data protection become critical for SaaS companies working with clients from the EU and the US. COREDO’s practice confirms: countries with strong IP protection systems and transparent data regulations ensure long-term sustainability and attractiveness for investors.

Best Jurisdictions for IT Companies

In 2025, registering a company in Europe, Asia, or Africa requires deep analysis not only of tax rates but also of substance requirements, banking infrastructure, investment attractiveness, and the reputation of the jurisdiction for IT companies. Below is an overview of key areas that the COREDO team works with in practice.

Cyprus, Estonia, Lithuania, Poland, Gibraltar: What to Choose?

• Cyprus – a classic choice for IT companies thanks to its 12.5% corporate tax rate, fintech licensing, and strong banking infrastructure. An important detail: since 2024, substance requirements have been tightened, requiring actual presence and staff on the island.
• Estonia – a leader in corporate reporting automation and a unique taxation system: 0% on undistributed profits. For IT businesses, this means the ability to reinvest income without immediate tax payments. Registering an IT company in Estonia is especially popular among SaaS and startups targeting the EU.
• Lithuania and Poland – attractive for fintech and crypto companies due to transparent regulation, startup visas, and R&D support. COREDO’s experience shows that obtaining a payment or crypto license in Lithuania is possible in an average of 4-6 months.
• Gibraltar, known as a “crypto jurisdiction,” but requires thorough Due Diligence and readiness for high compliance demands.

Singapore, Hong Kong, UAE, Turkey: Comparison

• Singapore, one of the world leaders in fintech licensing and banking infrastructure. Minimal authorized capital, just 1 USD, but substance requirements and local director demands are quite strict. Regulatory sandboxes for fintech startups are actively developed in Singapore, and opening a bank account is possible only with full transparency of structure and business processes.
• Hong Kong: retains the status of an international financial center. However, since 2024, AML/KYC requirements and CRS automatic exchange information have tightened. For IT companies working with cryptocurrencies, licensing and data protection nuances are relevant.
• UAE: attractive low corporate tax rate (9%), registration possibilities in free economic zones, and a developed banking infrastructure. Here it’s important to consider high substance requirements and specifics of cryptocurrency regulation.
• Turkey, becoming increasingly popular for IT companies due to flexible conditions for startups and growing innovation support.

Offshores in Africa: Seychelles, Belize, Panama

Jurisdiction Table for IT Companies 2025

Registration and Support of IT Companies Abroad

Registering an IT company abroad: it’s not just about choosing the country, but also a set of procedures: from opening a bank account to setting up compliance and corporate governance. COREDO’s practice shows: success depends on a systematic approach and professional support at all stages.

Open an Account in an International Bank
In 2025, opening a bank account abroad requires not only full KYC/AML compliance but also having substance: a real office, employees, and a transparent structure. This is especially relevant for opening an account for an IT company in the EU, where banks conduct deep due diligence and ask for proof of business activity. Solutions developed at COREDO allow speeding up the process by preparing a full package of documents and preliminary agreements with banks.

Legal business support
International legal support: key to minimizing risks and optimizing costs. Corporate secretarial services, reporting automation, preparation of legal opinions, and setup corporate governance allows IT companies to focus on development, not bureaucracy. COREDO’s experience has shown: timely implementation of compliance procedures reduces the probability of account blockage and fines by 3-5 times.

Changing Jurisdiction: Risks and Consequences
Exit strategies and changing the country of registration require thorough preparation. It’s important to consider the risks of losing preferential taxation, automatic information exchange, and potential consequences for cross-border M&A. COREDO’s practice confirms: only a comprehensive analysis of long-term consequences allows maintaining investment attractiveness and minimizing costs when changing jurisdictions.

Choosing a Jurisdiction for an IT Company in 2025

Choosing a jurisdiction for an IT company in 2025 becomes one of the key strategic tasks for technology businesses. In the context of globalization and rapid ICT sector development, the right country registration directly affects growth opportunities, international collaboration, and access to funding.

How to Choose a Country for Registering an IT Company

1. Conduct due diligence for each jurisdiction: assess tax burden, substance requirements, and the country’s reputation.
2. Check for fintech licenses, AML/KYC requirements, and the possibility of opening a bank account.
3. Compare registration costs, corporate reporting requirements, and banking infrastructure availability.
4. Evaluate intellectual property protection, GDPR compliance, and R&D support programs.
5. Engage an expert for preparing legal opinions and assessing long-term risks of jurisdiction change.

Common Mistakes When Choosing a Jurisdiction for IT Business

1. Ignoring substance requirements and real presence demands.
2. Underestimating compliance risks and CRS automatic information exchange.
3. Choosing a country without considering long-term tax and investment access consequences.
4. Errors in the structure of corporate governance and reporting.
5. Lack of an exit strategy and assessment of risks of losing benefits when changing jurisdiction.

Registering IT Companies Abroad: Trends 2025–2027

If your goal is long-term success in the international market, choose your jurisdiction consciously, based on deep analysis and professional support. The COREDO team is always ready to be your partner on this path, offering solutions proven by practice and adapted to future challenges.

Types of NDA: Unilateral, Bilateral, Multilateral

• Unilateral NDA: applied when only one party (the disclosing party) provides confidential information, and the other (the receiving party) is obligated not to disclose it. Most often used in hiring employees or working with contractors.
• Bilateral NDA: both parties exchange confidential information and are obligated to keep it secret. This format is relevant for negotiations between companies, joint developments, M&A deals.
• Multilateral NDA: includes three or more participants, each of whom can be either a disclosing or receiving party. This solution is often used in large projects, international consortia, and technology startups.

NDA to Protect Trade Secrets and Data

• Protect intellectual property (patents, know-how, source code, business models).
• Preserve trade secrets, from financial models to client bases.
• Comply with GDPR and national data protection laws, especially with cross-border information transfer.
• Strengthen trust between partners, investors, and customers.

How to Draft an NDA Independently in 2025

If you have decided to understand how to draft an NDA independently in 2025, it is important to understand each step of this process and its key nuances. Even basic steps: from defining the agreement’s goals to identifying the parties, significantly influence how effectively your NDA will protect confidential information.

Defining NDA Goals and Parties

• The purpose of the agreement: protection of trade secrets, intellectual property, personal data, or comprehensive protection.
• Parties: who discloses the information (disclosing party) and who receives (receiving party). In the case of bilateral or multilateral NDA: all participants must be clearly identified.
• Scope of information: what data is considered confidential, and what are the criteria for their classification.

Mandatory Sections of an NDA: What to Include in 2025

• Precise definition of confidential information.
• NDA duration: for different types of information, the duration may vary (e.g., for trade secrets – 3 years, for personal data, until the end of processing).
• Sanctions for disclosure: amount of compensation, damage calculation mechanism, possibility of fines.
• Dispute resolution procedure: choice of arbitration or court, applicable law.
• Data storage conditions: where, how, and in what form the information should be stored, who has access to it.
• NDA update procedure: how and when parties can make changes.
• Possibility of using electronic signature and digital document flow.

NDA Structure for International Business

1. Preamble: definition of parties, agreement objectives.
2. Definitions: what is considered confidential information, exceptions.
3. Parties’ obligations: confidentiality obligation, information usage conditions.
4. NDA duration: indicating start and end dates.
5. Liability and sanctions: damage compensation, fines, recovery procedures.
6. Dispute resolution procedure: applicable law, arbitration/court.
7. Data storage and destruction conditions.
8. NDA update and revision procedure.
9. Electronic signature and digital document flow (if applicable).
10. Other provisions: force majeure, notices, contact persons.

Enforceability of NDA in the EU, Asia, and Africa

Enforceability of NDA in the EU, Asia, and Africa is not only a matter of contract language formality but also a complex task requiring consideration of local laws, court practices, and cultural differences. For international companies and startups, it’s important to understand in advance how realistic it is to protect confidential information across different jurisdictions and what strategic solutions can increase the chance of successful NDA execution.

NDAs for International Companies and Startups

• Outsourcing and subcontractors: it’s necessary to clearly state the obligations of all parties, including beneficiaries, to eliminate “gray areas” of responsibility.
• Cross-border data transfer: NDA must consider data export legislation requirements, especially in the EU (GDPR) and Asia (PDPA, CCPA).
• NDA localization: adapting the text to the language and legal system of each partner country.

NDA Requirements in the EU, Asia, and Africa 2025

• EU: mandatory GDPR compliance, separate block on personal data processing, mechanisms for cross-border information transfer, breach notification.
• Asia: emphasis on trade secrets protection, mandatory regulator notification of leaks, data localization requirements (e.g., in Singapore and South Korea).
• Africa: rapid growth of data protection legislation (POPIA, NDPR), special attention to enforceability and notification procedures.

Checking Enforceability and Reducing Legal Risks

• Adapt the text to local law (NDA localization).
• Specify the applicable law and jurisdiction for dispute resolution.
• State clear and measurable sanctions for violations.
• Conduct regular NDA audits and updates in case of legislation changes.

Digital Document Flow and Electronic Signature for NDA in 2025

Digital Document Flow and Electronic Signature for NDA in 2025 become the standard for secure and efficient confidential information exchange between companies worldwide. It is important to consider how the choice of signing method and specifics of the electronic signature affect the legal force of NDA in various jurisdictions, including the EU, Asia, and Africa.

Electronic Signature for NDA in the EU, Asia, Africa

• Digital signature ensures the legal validity of NDA if identification of parties and document integrity requirements are met.
• Digital document flow simplifies NDA storage, search, and updates, reducing costs for a paper archive.
• It’s important to choose digital document flow platforms that meet compliance and Due Diligence requirements.

Controlling NDA Execution: Automation and Metrics

• Using specialized platforms to track deadlines, renewal reminders, changes audit.
• Integrating NDA into due diligence and compliance processes: automatic checking against internal policies and external requirements.
• NDA effectiveness metrics: number of detected violations, average time for approval, ROI from prevented losses.

Errors in NDA Drafting

Errors in NDA Drafting can lead to business vulnerabilities and risks of confidential information leaks. Entrepreneurs often underestimate the importance of details in this document, leading to typical missteps from the drafting stage. Let’s explore major NDA drafting errors and how to avoid them.

Errors by Entrepreneurs, How to Avoid Them?

• Too broad or vague definition of confidential information: courts may deem NDA unenforceable.
• Lack of clear sanctions for disclosure – inability to recover compensation.
• Ignoring local legislative requirements, NDA loses legal force in cross-border operations.
• Incorrect choice of applicable law and jurisdiction: complications in dispute resolution.
• No procedure for NDA updating and revision: the document becomes outdated and doesn’t protect the business.

Consequences of NDA Breach for Business

How to Draft an NDA in 2025

How to Draft an NDA in 2025 – a task requiring special attention to details and new legal standards. It is crucial not only to consider current requirements for structure and wording but also to foresee all key elements for protecting your interests. Below you will find a checklist that will help you draft an NDA independently, considering all the nuances of 2025.

Checklist for Drafting NDA Independently

1. Define NDA goals and the list of protected information.
2. Clearly identify the disclosing and receiving parties.
3. Provide exact definitions of confidential information and exceptions.
4. Set the term of NDA and renewal conditions.
5. Determine sanctions for breaches and compensation procedures for damages.
6. Specify applicable law and dispute resolution procedure.
7. Describe the conditions for information storage, destruction, and transfer.
8. Include an NDA update procedure.
9. Allow for electronic signature and digital document flow usage.
10. Conduct an NDA audit for compliance with jurisdictional requirements (compliance, due diligence).

When a Lawyer is Needed for Business

Conclusions for Business in the EU, Asia, and Africa

• NDA is not a formality but a strategic tool for protecting business, intellectual property, and trade secrets.
• Independent NDA drafting requires deep understanding of legal, technological, and management aspects: from choosing the type of agreement to implementing document flow automation.
• Regular updating, auditing, and adapting NDA to jurisdictional and regulatory requirements: a mandatory condition for minimizing legal risks.
• Electronic signature, digital document flow, and automation of NDA execution control: key trends of 2025 that improve business process efficiency and transparency.
• Timely involvement of experts and legal business support, an investment in the company’s resilience, scalability, and competitiveness.

In 2024, the global volume of laundered criminal proceeds exceeded $2.7 trillion: more than the GDP of most countries in the world. In just the last two years, the fines for non-compliance with Anti-Money Laundering (AML) requirements have increased by 42%, and the number of regulatory investigations has almost doubled. Virtual assets, DeFi, and stablecoins are rapidly changing the landscape of financial risks, and international AML standards are becoming increasingly stringent and complex for global business. How can you ensure compliance control without losing flexibility in the face of multi-jurisdictional regulations? Are your processes ready for the new FATF requirements and local regulators in the EU, Asia, and Africa? Why is implementing AML into business processes becoming not just a legal obligation but a matter of survival and company reputation?

Over the years, the COREDO team has frequently encountered situations where even experienced international companies underestimated the depth and speed of changes in the field of AML compliance. In this article, I will thoroughly examine the key trends of AML 2025, provide practical recommendations for implementation and improvement of financial monitoring, and share strategies that truly work in the EU, Asia, and Africa. If you want not just to meet the requirements but to use AML as a competitive advantage, read to the end. Here you will find answers to the most pressing business questions and tools for confident progress.

AML Trends in 2025

AML trends in 2025 are already shaping a new reality for financial market participants. In the near future, the anti-money laundering system is expecting major changes due to updated FATF requirements and significant legislative amendments. These changes require not only the adaptation of business processes but also the revision of internal control and compliance procedures.

New FATF Requirements and Legal Changes

The solution developed at COREDO included a detailed audit of business processes, adaptation of internal AML policies, and integration with international databases, which allowed successful completion of VASP Licensing in both jurisdictions.

Artificial Intelligence and Big Data in AML

AML 2025 is no longer just about regulations and paperwork. Machine learning, Big Data, and RegTech platforms are becoming standard for the automation of AML processes and financial monitoring. Modern AML systems can analyze millions of transactions in real time, identify complex money laundering schemes, and minimize the number of false positives.

Solutions integrating blockchain analytics and automatic transaction monitoring for cryptocurrencies and DeFi are particularly effective.

At the same time, the rapid development of decentralized finance and stablecoins requires separate attention from regulators and market participants.

Regulation of DeFi and Stablecoins in 2025

In 2025, the regulation of virtual assets becomes one of the key areas in the fight against money laundering. The GENIUS Act and updated VASP licensing requirements demand companies implement comprehensive AML procedures, including blockchain analytics and risk assessment when working with DeFi and stablecoins.

The introduction of automated monitoring systems and employee training on new FATF standards not only ensured compliance with regulatory requirements but also increased trust from banks and partners.

AML Compliance for International Business

AML compliance for international business is not just a formal requirement but a key element of the strategy for managing financial risks when operating in foreign markets. To effectively implement these measures, verification procedures like KYC and timely reporting of suspicious activities are of particular importance, as they create the foundation for preventing financial crimes and maintaining trust among partners and regulators.

KYC Verification and SAR Reporting

Effective compliance control is impossible without modern KYC (Know Your Customer) and CDD (Customer Due Diligence) procedures. In 2025, these processes require integration with international databases, automation of data collection and verification, as well as regular updates of client information.

AML: Differences in Implementation in the EU, Asia, and Africa

Implementing AML in the EU, Asia, and Africa requires consideration of differences in national regulations, levels of maturity of financial monitoring systems, and specifics of working with virtual assets. For instance, the EU has strict harmonization of FATF standards, but there are local nuances regarding VASP licensing and reporting requirements. In Asia, countries have diverse approaches to cryptocurrency and DeFi regulation, while in Africa, the main challenges include weak transaction control and a high proportion of offshore structures.

The COREDO team has developed multi-jurisdictional control strategies for clients entering Southeast Asian and EU markets, which minimized compliance risks and accelerated the process of registering legal entities and obtaining financial licenses.

Comparison of AML requirements in the EU, Asia, and Africa:

Audit and Optimization of AML Processes

AML process audit is a key tool for assessing the effectiveness of anti-money laundering systems. In 2025, international regulators require not just formal compliance but the actual effectiveness of internal AML policies, regular employee training, and transparent reporting.

This approach allowed for a successful audit and timely acquisition of the VASP license without delays.

IT and Automation in AML 2025

IT and automation in AML 2025 are radically changing approaches to identifying and preventing financial crimes. Modern technologies allow real-time analysis of vast amounts of transactions, automatically detecting suspicious operations and client behavior anomalies. These tools are becoming standard for companies striving for compliance with international requirements and effective risk management.

In this context, effective transaction monitoring and timely detection of suspicious activities become particularly significant.

Transaction Monitoring and Suspicious Activities

Modern IT in AML allows for the automation of transaction monitoring, uses machine learning to detect complex laundering schemes, and reduces the share of false positives. In 2025, such solutions become a mandatory element of AML compliance for companies dealing with large transaction volumes and virtual assets.

RegTech and Blockchain Analytics for AML

RegTech platforms are becoming standard for automating AML processes, especially in transaction analysis for laundering and integration with international databases. Blockchain analytics allows tracking the origin of funds, identifying connections between addresses, and assessing risks when working with DeFi and stablecoins.

The COREDO team has implemented RegTech-based solutions for clients from the EU and Asia, ensuring compliance with new FATF requirements and boosting financial monitoring efficiency.

Cyber Risks and Digital Laundering Schemes

Effective AML risk management strategies include integration with international databases, automated transaction analysis, and employee training on new threats.

Implementing AML Compliance in an International Company

Implementing AML compliance in an international company becomes a necessity for protecting the business from financial crimes and adhering to international standards. Effective implementation of AML procedures not only minimizes legal and financial risks but also establishes a transparent, sustainable management system.

Steps to Implement AML Procedures

Based on COREDO’s experience, I suggest the following algorithm:

1. Audit current processes, assess internal policy compliance with international AML standards and FATF requirements.
2. Implement KYC/CDD, automate client verification procedures with integration of international databases.
3. Automate transaction monitoring – introduce RegTech platforms and machine learning for transaction analysis.
4. Train staff: regular training on new AML requirements, raising awareness of cyber risks.
5. Integrate with international databases, ensuring access to up-to-date information on clients and transactions.
6. Regular audit and optimization, continuous process improvement, preparation for regulator checks.

How to Prepare for Audits and Reduce Risks

In one of COREDO’s cases for an international payment platform, a project was implemented to integrate automated reporting systems and train employees to handle incidents, which minimized fines and maintained partner trust.

AML Requirements: Employee Training

Training employees in AML and raising awareness of new threats is a key factor in the entire system’s effectiveness. Regular training, updates to internal policies, and integration of new FATF standards into corporate culture not only ensure compliance but also build a solid market reputation.

Conclusions and Advice for Business

In 2025, anti-money laundering becomes one of the key factors for the sustainability and competitiveness of international business. Best AML risk management practices include process automation, integration with international databases, regular audits, and staff training. Implementing new FATF standards, adapting to local requirements, and using modern RegTech tools not only minimize costs but also increase ROI from compliance investments.

Summary Table: Key Trends, Risks, and Solutions in AML 2025

Actionable advice for business:

• Conduct an audit of current AML processes and adapt them to FATF 2025 standards.
• Implement automated platforms for KYC/CDD and transaction monitoring.
• Regularly train employees on new requirements and cyber threats.
• Integrate AML control into due diligence processes during mergers and acquisitions.
• Use RegTech solutions to reduce costs and increase efficiency.

Useful resources and documents:

• Official FATF website
• FATF Recommendation 15 (AML for new technologies)
• Sanctions and PEP databases
• RegTech solutions overview for AML

If you are looking for a strategic partner to implement and improve AML compliance, COREDO’s team is ready to offer comprehensive solutions based on deep understanding of international standards and practical experience in the EU, Asia, and Africa.

In 2025, more than 60% of cryptocurrency startups planning to enter the European market faced the need to completely overhaul their business models due to MiCA regulation and tightened AML compliance. While institutional investors are increasing requirements for transparency and legal harmonization, many international companies note: EU new rules not only raise costs but also create market entry barriers for innovative projects, especially in the stablecoin and asset tokenization segment.

When MiCA Doesn’t Suit Crypto Businesses

MiCA regulation is intended to unify approaches to the regulation of crypto assets in the EU, but in practice, not all business models and scaling strategies fit within its framework. COREDO experts have repeatedly encountered situations where the adoption of MiCA created additional barriers for international companies, especially regarding AML compliance and cross-border licensing.

Limitations of MiCA for International Companies

MiCA introduces strict requirements for the classification of crypto assets, corporate governance, and asset custody. For companies working with innovative business models, such as asset tokenization or stablecoins, these requirements become not only financially burdensome but also hinder the rapid launch of projects. Crypto asset management protocols must comply with unified EU standards, which limits flexibility and requires significant investment in legal harmonization and integration of AML/KYC processes.

When MiCA is Disadvantageous for Crypto Businesses

MiCA is not suitable for companies focused on rapid scaling, working in multiple markets, or providing flexible crypto services (e.g., custodial services, DeFi products, multi-asset platforms). Compliance for cryptocurrency companies in Asia and other regions is often based on different principles, and integrating these processes within the MiCA framework requires significant time and resources.

Cryptocurrency Regulation in Switzerland

Switzerland has long established itself as a jurisdiction with high transparency of crypto asset regulations and a flexible approach to innovation. A solution developed by COREDO for one of the clients showed that registering a crypto business in Switzerland allows not only obtaining a VASP license in the shortest possible time but also ensuring the legalization of cryptocurrency operations in accordance with FATF and AMLA requirements.

FINMA Requirements for VASP in 2025

FINMA (Swiss regulator) establishes clear yet flexible rules for VASP (Virtual Asset Service Provider). By 2025, requirements for corporate governance, custody, and asset reservation, as well as AML/KYC process integration, have become even more structured, while maintaining adaptability for innovative models. To obtain a crypto license in Switzerland, you need to:

• Confirm transparency of the corporate structure and sources of funding.
• Implement KYC and AML procedures in accordance with AMLA and FATF standards.
• Ensure custody and reservation of assets comparable to the banking sector.
• Demonstrate sustainable risk management and internal protocols for crypto asset management.

AML and KYC for Crypto Business in Switzerland

AML compliance in Switzerland is based on principles of transparency and preventive control. Key requirements include:

• Multi-level client identification (KYC), including for complex corporate structures and transactions involving stablecoins.
• Use of transaction analysis technologies and suspicious operation monitoring.
• Integration of AML/KYC processes into the company’s business processes considering FATF and 5AMLD requirements.

Cryptocurrency Taxes in Russia

One of Switzerland’s key advantages is its high tax clarity for crypto assets. Unlike most EU countries, where tax regimes for crypto businesses vary and often change, Switzerland has a transparent taxation system:

• Crypto assets are recognized as property and are taxed on capital, not income.
• Companies involved in asset tokenization and stablecoins are eligible for tax benefits and special regimes.
• Tax burden optimization is possible for cross-border operations, as confirmed by COREDO’s experience in supporting clients from the EU and Asia.

MiCA or Swiss Crypto Regulation: Comparison

Crypto License in Switzerland for the EU

The decision to register a cryptocurrency business in Switzerland requires a strategic approach and a deep understanding of regulatory requirements. COREDO’s experience shows: a clear roadmap and professional legal support minimize risks and accelerate market entry into the EU and Asia.

Therefore, successful company registration and obtaining a license in Switzerland requires a phased approach and careful preparation for each stage, which forms the basis for further consideration of the structural and legal nuances of the process.

Registration and Licensing of a Crypto Business in Switzerland

1. Choosing an Organizational-Legal Form: Preference is usually given to AG or GmbH, providing flexibility in corporate governance.
2. Preparation of Founding Documents and Business Plan: It is important to detail the management structure, funding sources, and asset storage mechanisms.
3. Submitting an Application to FINMA: Includes disclosure of beneficial owners, description of AML/KYC processes, and internal control.
4. Implementing Compliance Procedures: At this stage, COREDO develops individual AML/KYC policies, integrating transaction analysis and monitoring technologies.
5. Obtaining a VASP License and Company Registration: Once FINMA approves, the company can officially provide crypto services and scale the business to the EU and Asian markets.

AML/KYC and Compliance with FATF Requirements

Key Elements:

• Use of automated transaction monitoring systems.
• Regular employee training and internal process audits.
• Implementing risk management and reporting protocols for institutional investors.

ROI and Risks of Swiss Jurisdiction

The ROI assessment for crypto companies in Switzerland is based on balancing licensing costs, tax burden, and scaling opportunities. A solution developed by COREDO for a client reduced costs by 30% compared to a similar project in the EU and enabled entry into new markets due to the ease of cross-border operations.

Where to Scale a Crypto Business: Switzerland, EU, or Asia?

the choice of jurisdiction for scaling a crypto business depends on strategic goals, client structure, and product features. COREDO’s experience covers company registration in the EU, Asia, and Switzerland, allowing an objective evaluation of each model’s advantages.

– Switzerland, optimal for innovative startups focused on institutional investors and international markets, where regulatory flexibility and tax clarity are critical.
– EU, suitable for companies targeting the mass market and cross-border licensing within a single legal field, provided they are ready for high compliance costs.
– Asia is attractive for projects working with high-tech products and multi-jurisdictional clients but requires special attention to compliance and local AML/KYC requirements.

Recommendations for Entrepreneurs

• The MiCA regulation is a powerful tool for legal harmonization but not a universal solution for all business models.
• Switzerland offers a unique combination of flexibility, transparency, and tax clarity for crypto businesses, especially in innovative services and asset tokenization segments.
• The key to successfully entering the EU and Asian markets: professional legal support, AML/KYC process integration, and constant monitoring of regulatory changes.
• COREDO practice confirms: an individualized approach to jurisdiction selection and compliance architecture building allows not only to minimize risks but also significantly increase the company’s investment appeal.
• For long-term success, building corporate governance oriented towards institutional investor and international regulator requirements is critical.

MiCA and Switzerland: Answering Questions

Every 60 seconds, more than 1.5 million dollars are laundered worldwide, according to official estimates published in FATF and UN reports. Despite stricter anti-money laundering legislation, the global damage from financial crimes exceeds trillions of dollars annually. But the greater threat is not so much the scale, but the speed and technological sophistication of the schemes faced by modern business.
Have you ever considered how vulnerable your legal entity registration processes, international transactions, or even a simple customer base are to AML risks?

My experience at COREDO shows that even large companies successfully operating in the EU, Asia, or the Middle East encounter unexpected challenges when implementing AML policies.

AML Training: Where to Get Basic Knowledge?

Building a sustainable anti-money laundering system is impossible without systematic AML training for business owners, executives, and employees. International AML standards and FATF recommendations require not only the implementation of formal procedures but also regular skills enhancement through specialized AML courses, training, and certification.

The Best AML Courses for Business in the EU, Asia, Africa

• ACAMS (Association of Certified Anti-Money Laundering Specialists) is recognized as the world standard for AML officers, executives, and business owners. ACAMS certification is valued among regulators in the EU, UK, Singapore, and UAE.
• European Institute of Management, focused on EU specifics, including EBA and national regulator requirements.
• MAS AML Training (Singapore), relevant for fintech companies and banks operating under the supervision of the Monetary Authority of Singapore.
• FinTech AML Academy – focuses on startups, fintech, and e-commerce, with an emphasis on practical cases and the integration of AML processes into innovative business models.

How to Choose an AML Course for Employees and Executives

The choice of AML training program depends on the business model, jurisdiction, and scale of operations. COREDO’s experience shows:

• For international holdings and banking groups, courses focusing on FATF recommendations, Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), and corporate AML policy are optimal.
• Startups and fintech companies should choose training that addresses AML issues for virtual currencies, electronic money, cyber risks, and process automation.
• For top management and business owners, the focus is on strategic risk management, ROI from AML training investments, and practical aspects of implementing internal AML controls.

Certification and Training for Business

AML certification is not just a formality, but a strategic tool for minimizing risks and increasing trust from banks, partners, and regulators. International AML standards and FATF recommendations require key employees to undergo regular training, confirm their qualifications, and document the results (e.g., through internal AML documentation and corporate AML policy).

Implementing AML for Business: Step by Step

Implementing AML policy is a process that requires not only knowledge of legislation but also a deep understanding of business processes, corporate structure, and regulatory specifics of a particular jurisdiction. The solutions that COREDO’s team has implemented for clients in the EU, Asia, and UAE are always based on the principles of thorough customer verification (KYC, CDD, EDD), transaction monitoring automation, and regular AML audits.

Effective AML System for the Company

Effective AML procedures for companies include:

• Developing an internal AML policy based on international standards (FATF, AML/CFT Act, EBA, FCA, MAS recommendations).
• Assigning responsible persons (AML officer, internal AML control), conducting training and certification.
• Implementing Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), customer profiling, and sanctions screening procedures.
• Setting up automated transaction monitoring, detection of suspicious activities (Suspicious Activity Report, SAR), and regular updates of procedures considering new risks.

Documentation and AML Procedures

Efficient AML documentation is the foundation of compliance transparency and manageability. At COREDO, we recommend:

• Maintaining a centralized registry of all KYC/AML procedures, including the results of beneficiary verification (beneficial ownership), internal investigations, and financial monitoring reports.
• Conducting regular internal audits and AML risk assessments, documenting the results, and adjusting the corporate AML policy.
• Implementing the company’s sanctions policy, ensuring monitoring of its implementation, and storing all documents in accordance with EU, Asia, and Africa regulators’ requirements.

KYC/AML for E-commerce and Fintech

Particularly important is AML for fintech companies, e-commerce, and payment institutions. In these sectors, it is critically important to:

• Integrate KYC/AML systems with internal platforms, automate customer verification and transaction monitoring.
• Consider the specifics of electronic money, cryptocurrencies, and virtual currencies AML, as well as manage cyber risks.
• Obtain and maintain MSOL licenses for payment institutions, comply with regulatory sandboxes requirements, and regularly update procedures according to new fraud threats.

AML in the EU, Asia, and Africa: Features

Registration of legal entities in the EU, Asia, and Africa requires deep knowledge of regional AML requirements, licensing specifics, and interactions with regulatory bodies.

AML: Regional Requirements and Features

The COREDO team has accumulated unique experience in implementing AML systems in Estonia, Cyprus, Singapore, Hong Kong, UAE, and Mauritius.

• In Estonia and Cyprus, the focus is on transparency of ownership structure, identifying beneficiaries, and comprehensive customer verification.
• In Singapore and Hong Kong, regulators (MAS, HKMA) require regular updates of CDD procedures, the implementation of automated AML platforms, and integration with state databases.
• In UAE and Mauritius, international AML cooperation, information exchange with other jurisdictions, and compliance with FATF standards are emphasized.

Compliance with FATF Requirements

The key to successful compliance with international AML standards is the implementation of multi-level procedures for Due diligence, Customer Due Diligence (CDD), identifying beneficiaries (beneficial ownership), and regular AML risk assessment.
COREDO’s solutions for clients in the EU and Asia include:

• Conducting independent AML audits, preparing for regulatory inspections, and documenting all procedures.
• Setting up a transaction monitoring system, sanctions screening, and automated SAR generation.
• Continuous employee training, updating corporate AML policies, and integrating new FATF requirements into daily practice.

Implementation Mistakes in AML Practice

When considering the typical mistakes in AML implementation and their consequences, it is important to understand why these issues are so critical to business.

Implementation Mistakes in AML and Their Consequences

The most common mistakes identified by COREDO’s practice:

• Insufficient detail in internal AML policy and lack of regular updates to procedures.
• Ignoring sanctions screening requirements, resulting in account freezes and fines from European and Asian regulators.
• A formal approach to Customer Due Diligence (CDD) and lack of internal AML control, which in some cases led to investigations, asset freezes, and lengthy internal inquiries.

AML: Examples of Implementation in International Companies

• Conducting comprehensive audits and implementing automated AML platforms integrated into ERP systems.
• Developing KPIs for monitoring AML compliance, regularly assessing procedure effectiveness, and adjusting corporate policy considering new threats.
• Organizing regular training, educating AML officers and employees, which significantly reduced fraud risks and improved resilience to internal and external threats.

AML Automation Technologies: Trends 2025

This requires a competent choice of the right AML platform, meeting your business needs.

How to Choose an AML Platform

When selecting an AML platform, the COREDO team recommends considering:

• The ability to integrate with the company’s internal systems (ERP, CRM, banking gateways).
• Support for automation of transaction monitoring, sanctions screening, and SAR generation.
• Available tools for AML risk assessment, client profiling, and AML documentation management.
• Flexibility in customizing to different jurisdiction requirements and scalability when entering new markets.

KPI and Evaluation of AML System Effectiveness

Evaluating AML system effectiveness is based on:

• Regularly checking corporate policy compliance with international standards (FATF, EBA, MAS).
• Analyzing key metrics: the number of identified suspicious transactions, SAR processing speed, CDD/EDD success rate, level of process automation.
• Conducting independent AML audits, analyzing incidents, and adjusting procedures based on identified weaknesses.

Practical Recommendations for Business

• Invest in AML training for executives and employees, choose internationally recognized courses and certifications.
• Develop and regularly update internal AML policy, taking into account the specifics of jurisdictions and business models.
• Implement automated systems for transaction monitoring, sanctions screening, and AML documentation.
• Use AML function outsourcing when lacking internal resources, especially when entering new markets.
• Conduct regular internal audits, AML risk assessments, and adjust procedures in accordance with new regulatory requirements.

For effective compliance, it is important to keep employees’ knowledge up-to-date and respond to regulatory changes promptly.

Frequently Asked Questions About AML Training

If you want to get individual consultation on implementing AML or selecting the optimal training for your team, the COREDO team is always ready to share their experience and offer strategic solutions proven in the most demanding jurisdictions.

Crypto Regulation in Singapore and MAS

Crypto Services License in Singapore

MAs pays special attention to AML compliance: companies must implement transaction monitoring systems, automated KYC procedures, and conduct regular AML risk assessments. This approach not only reduces regulatory risks but also increases the trust of banks and partners.

Stablecoin and Tokenized Asset Regulation

MiCA Requirements for Crypto Business in the EU

MiCA: Key Business Requirements

COREDO’s experience confirms: for certain business models (e.g., DeFi, multi-currency stablecoins, innovative payment services), MiCA requirements become a significant barrier, particularly regarding tokenization and crypto exchange regulation.

Ban on Algorithmic Stablecoins – New Requirements

AML and KYC: Singapore vs EU

AML for Crypto Business in Singapore

AML and KYC Requirements: Europe vs Asia

Company Registration in Singapore for a Crypto Startup

How to Open a Fintech Company in Singapore

Access to Banking Services and Infrastructure

Singapore’s banking infrastructure is considered one of the most developed in the world. Obtaining a banking license in Singapore or a digital banking license opens up access to cross-border payments, investment products, and listing on the Singapore Exchange (SGX). For fintech companies, this is a strategic advantage, allowing rapid integration into the Asian ecosystem and attracting international investors.

Cross-Border Risks for International Companies

MAS Regulation for Crypto Firms Working Abroad

Special attention is paid to monitoring cross-border payments and verifying sources of funds, which is critically important for sustainable development and business scaling.

Issues with European and Asian Regulators

MiCA and Regulation in Singapore: A Comparison

Crypto Startups in Singapore: Investment and Growth

Business Scaling to Foreign Markets

ROI and Choosing Jurisdiction for Crypto Business

Practical Advice for Entrepreneurs

• Conduct a preliminary analysis of the business model considering PSA and SFA requirements.
• Prepare a corporate structure that meets MAS and Singapore Corporate Governance Code requirements.
• Implement automated KYC procedures and transaction monitoring systems.
• Develop internal AML/CFT policies considering the specifics of cross-border operations.
• Conduct AML risk assessment using international best practices.
• Choose a reliable consulting partner for registration and licensing support.
• Regularly update compliance procedures in line with regulatory changes.

Singapore or MiCA: What to Choose in 2025?

Checklist for Decision Making:

• Analyze the business model for PSA and MiCA compliance.
• Evaluate licensing and compliance requirements in both jurisdictions.
• Calculate ROI metrics considering regulatory risks and launch costs.
• Prepare a corporate structure considering cross-border activity.
• Implement AML/CFT best practices and KYC procedure automation.
• Consult with COREDO experts to develop an individual strategy.

P2P transactions are direct transfers of funds between legal entities or individuals, bypassing traditional banking intermediaries. For international business, this is a tool for flexibility, speed, and cost optimization. However, with the increasing popularity of P2P transfers, the regulatory requirements in the EU, Asia, and Africa have become stricter, with regulators implementing new financial monitoring protocols, KYC for businesses, and anti-money laundering procedures.

Today, I, Nikita Veremeev, am sharing a practical guide based on the experience of COREDO in company registration in the EU, Asia, and Africa, obtaining financial licenses, implementing AML compliance, and supporting P2P operations. This article is not just an analysis but a strategic tool for leaders who want to not only avoid account blocks and sanctions but also scale business using P2P transfers legally and effectively. If you’re looking for answers about the legality of P2P transfers, financial monitoring, due diligence, and choosing the optimal jurisdiction, read to the end. Here you will find solutions tested in COREDO’s practice.

Legality of P2P Transfers: International and Local Regulation

Legality of P2P transfers is becoming an increasingly relevant topic in the context of rapidly changing global financial regulation. Today, international and local regulations impose new requirements on P2P transactions, and their impact is particularly noticeable in EU countries, where updated standards will come into effect in 2025.

P2P Transactions in the EU: 2025 Requirements

In the European legal framework, the regulation of P2P transactions is based on a combination of EU directives, national laws, and FATF recommendations. The key provisions are enshrined in the 6th EU Directive on money laundering (6AMLD) and PSD2, which require companies to implement comprehensive AML compliance procedures and KYC for businesses. From 2025, stricter limits are expected on P2P transfers between companies and the mandatory identification of the ultimate beneficial owner (UBO) for cross-border payments.

The EU market is characterized by highly detailed requirements for the registration of companies for P2P operations: Licensing of platforms, mandatory verification of the source of funds, integration of automated financial monitoring systems, and mandatory reporting on suspicious transactions. Cross-border payments between EU residents and non-residents are subject to additional control, and P2P transfer limits are set both at the bank level and by national regulators. COREDO’s practice confirms that timely implementation of AML policies and automation of transaction monitoring allows not only avoiding account blocks but also speeding up due diligence processes during audits.

Regulation of P2P Transfers in Asia and Africa

In Asia and Africa, the regulation of P2P transfers is highly fragmented. For instance, in Singapore, registering a company that conducts P2P operations requires a local director and corporate secretary, and platform licensing is overseen by the Accounting and Corporate Regulatory Authority (ACRA). In the UAE and Thailand, there are specific requirements for AML compliance and financial monitoring, and in South Africa: strict control by the central bank.

Special attention is given to P2P transactions with cryptocurrency: exchanges are required to implement KYC/AML procedures, conduct verification of the source of funds, and integrate systems for detecting suspicious operations. The solution developed at COREDO for clients from Singapore and the UAE includes automation of counterpart checks and integration with global sanctions lists, minimizing risks of account blocks and inclusion in the registry of suspicious clients.

Liability for Illegal P2P Operations

The COREDO team has implemented cases where proper legal defense and preliminary Due Diligence allowed clients to avoid being placed on sanctions lists and restore access to corporate accounts after blocking. The key conclusion: only systematic work with AML procedures and transparent financial reporting protect the business from long-term consequences.

AML Compliance in P2P Transactions

AML compliance in P2P transactions is becoming increasingly important as the volume of direct transfers between users and the development of cryptocurrency platforms grow. The implementation of AML and KYC procedures for businesses becomes especially significant to timely identify risks and prevent the legalization of illegal funds within peer-to-peer operations.

AML and KYC for Business

COREDO’s practice shows that automating KYC for businesses and integrating with global databases can speed up the verification of counterparts in P2P, reduce human error, and minimize the likelihood of conducting high-risk transactions. A compliance officer becomes a key figure in the internal control system, responsible for the implementation and regular updating of anti-money laundering procedures.

Financial Monitoring, How to Automate?

Modern transaction monitoring systems are based on the principles of transaction scoring and automated detection of suspicious operations. For P2P platforms and companies actively using P2P transfers, it is critically important to integrate tools that allow real-time tracking of anomalies, comparing operations with the client profile, and identifying potential cashing-out schemes or involvement of drop parties.

The solution developed at COREDO for Asian and European clients includes the implementation of automated P2P transaction monitoring modules, allowing not only compliance with FATF and national regulators’ requirements but also prompt reactions to changes in counterparty behavior. This approach reduces risks for legal entities and ensures transparency of financial flows.

How to Avoid Bank Account Blocking

Banks and financial institutions use complex algorithms to detect suspicious P2P operations: they analyze the frequency of transfers, payment structure, and the relevance of payment designations to the company’s actual activities. Criteria for suspicious operations include abnormal amounts, regular transfers to non-resident accounts, and using corporate accounts for personal needs.

Legal Support for P2P Transfers Between Companies

Legal support for P2P transfers between companies is a key element for lawful and safe organization of settlements in international business. Each stage of the P2P processes between legal entities requires considering the peculiarities of currency and tax control, compliance with reporting rules, and the correct choice of jurisdiction. We will further examine company registration for P2P transfers in the EU, Asia, and Africa, with a focus on current requirements and nuances.

Registration of Legal Entities for P2P in the EU, Asia, Africa

Choosing a jurisdiction for company registration focusing on P2P operations determines not only the tax burden but also the requirements for licensing, banking compliance, and financial reporting. In the EU, licensing for P2P platforms and exchangers is mandatory, and AML/KYC requirements correspond to FATF and 6AMLD standards. In Asia, for instance, in Singapore, company registration requires a local director and corporate secretary, with licensing regulated by ACRA.

Documents and Reporting on P2P Operations

Correct invoicing, payment orders, and contracts are the foundation for income legalization and minimizing tax risks in P2P transactions. Financial due diligence conducted at the deal conclusion stage allows identifying risks associated with the counterparty and preparing reports for tax authorities and auditors.

COREDO’s solution for European and Asian companies includes developing document templates that meet national regulators’ requirements and implementing automated systems for preparing financial reporting on P2P operations. This approach ensures transparency for investors and reduces the chance of account blocks.

These measures become especially relevant against the backdrop of businesses’ growing interest in using P2P cryptocurrency tools.

P2P Cryptocurrency for Business

Working with cryptocurrency exchanges and P2P platforms requires special attention to AML compliance and verification of fund sources. For the legal purchase of cryptocurrency through P2P, a legal entity must provide a full package of documents: regulatory documents, proof of registration, invoices, and also pass the KYC procedure on the exchange.

COREDO’s team has implemented projects for integrating AML services into P2P platforms for clients from the EU and Asia, allowing not only to legalize cryptocurrency deals but also to prevent accusations of cashing out and laundering criminal proceeds. It’s important: regular monitoring of operations and automation of due diligence become mandatory elements of a company’s compliance policy.

Business Risks: How to Operate Legally

Business Risks are becoming increasingly significant in the context of digitalization and the growth of non-standard payment schemes. For entrepreneurs, it is crucial to understand how to operate legally, considering the features and dangers of modern transactions, especially when it comes to P2P operations. We will further examine key risks of P2P transactions for businesses and ways to minimize them.

Risks of P2P Transactions for Business

COREDO’s practice shows that regular audits, implementation of systems for detecting suspicious operations, and staff training allow identifying and preventing fraudulent schemes at early stages.

Compliance Policy: What It Is and Why It Is Needed

The solution implemented by COREDO for international clients includes the integration of automated monitoring services, development of checklists for due diligence, and regular training for staff. This approach protects businesses from charges of laundering through P2P and reduces the likelihood of tax claims.

Scaling Business Through P2P Transfers

To scale a business using P2P transfers, it’s crucial to choose a payment platform that meets the chosen jurisdiction’s requirements, integrate AML services, and ensure transaction transparency for investors. Automation of P2P transaction monitoring and the implementation of a financial control system allow for risk management in transactions with non-residents and preparing reports for auditors and tax authorities.

COREDO’s experience shows that transparency in P2P transactions, regular due diligence, and integration of compliance tools are essential conditions for sustainable growth and trust from investors and banks.

Conclusions and Recommendations for Business

• Implement comprehensive AML/KYC procedures and automated transaction monitoring systems.
• Regularly update the compliance policy considering legislative changes in the EU, Asia, and Africa.
• Conduct due diligence of counterparts before every P2P transaction, especially when working with non-residents and cryptocurrencies.
• Document all P2P operations using invoices, payment orders, and supporting documentation.
• Prepare financial reports on P2P operations for tax authorities and auditors in advance.
• Provide staff training and appoint a competent compliance officer.
• If placed in the registry of suspicious clients, initiate an internal audit and seek professional legal support.

If you would like to receive individual consultation on legal work with P2P transactions, company registration in the EU, Asia, or Africa, AML compliance implementation, and financial monitoring, the COREDO team is ready to offer solutions tested in practice and tailored to your business.

This guide is the result of COREDO’s many years of work with international clients, real cases, and in-depth legislative analysis. Use it as a strategic tool for legal and effective work with P2P transactions in any jurisdiction.

In 2024, over 70% of crypto startups planning to enter the European market faced the need to revise their strategies due to new requirements of the MiCA regulation, the first comprehensive law on crypto-assets in the EU. According to ESMA, only 18% of companies applying for CASP (Crypto Asset Service Provider) status successfully passed the preliminary compliance audit in pilot jurisdictions. This is more than just statistics; it’s a signal to rethink the approach to registering legal entities in the EU and licensing crypto services.

Why are so many players unprepared for MiCA? What risks does MiCA implementation pose for international crypto companies? Why are even large projects starting to look towards El Salvador, a jurisdiction where cryptocurrency regulation is based on principles of accessibility and speed? How to choose a strategy to avoid being left out in a market undergoing consolidation and tightening compliance requirements?

In this article, I will share the experience of the COREDO team, which has been supporting international projects in the EU, Asia, and the CIS since 2016, and show how tasks of company registration, obtaining financial licenses, implementing AML for crypto business, and strategic compliance planning are practically solved under MiCA conditions and alternative regimes. If you want to understand how to prepare for MiCA implementation in 2025, evaluate the advantages of registering a company in El Salvador, or choose the optimal jurisdiction for scaling: read to the end. Here you will find not only risk analysis but also specific tools for decision-making.

Crypto Asset Regulation under MiCA

Crypto Asset Regulation under MiCA creates a new regulatory environment for working with digital assets in EU countries. Thanks to these rules, a unified system of requirements arises, increasing transparency, protecting investors, and establishing obligations for crypto companies. Let’s further examine what specific requirements MiCA imposes on participants in the EU crypto market.

MiCA Requirements for Crypto Companies in the EU

MiCA regulation introduces strict standards for all participants in the crypto asset market in Europe. For companies applying for CASP status, the key requirements are:

• Licensing of crypto services: To enter the EU market, it is required to obtain a license issued by the national regulator and approved by ESMA. The process includes a comprehensive review of the corporate structure, sources of funding, and business model.
• AML for crypto business: Implementing anti-money laundering and counter-terrorism financing (AML/CFT) procedures becomes mandatory. Companies must develop and maintain internal CDD (customer Due Diligence) policies, identify ultimate beneficiaries, implement KYC procedures, and ensure transparency of operations.
• Whitepaper for tokens: Issuing utility tokens, ARTs, or EMTs requires preparing a formalized whitepaper revealing technical details, risks, investor protection mechanisms, and compliance with MiCA requirements.
• Corporate governance: MiCA imposes requirements on corporate structure transparency, regular auditing, and reporting, especially relevant for companies working with crypto assets and stablecoins.
• Travel Rule: All CASPs are obligated to implement a mechanism for transferring client information for cross-border crypto asset transfers, requiring integration with international FATF standards.

MiCA Implementation: Challenges and Risks

MiCA regulation: is not just a set of formal requirements. For most companies, the key challenge becomes the compliance cost: costs of audits, legal support, AML/KYC implementation, operation monitoring automation, and whitepaper preparation. According to COREDO’s estimates, for an average crypto service in the EU, the cost of full MiCA compliance implementation can reach 250-500 thousand euros in the first year, with market entry timelines ranging from 6 to 18 months.

Among the long-term consequences of the MiCA regulation, there is an increase in operational costs, stricter corporate governance requirements, and the risk of small players exiting the market. For entrepreneurs, this means the need for strategic compliance planning and evaluating the ROI of MiCA implementation.

MiCA and AML Rules for Crypto Business

MiCA regulation integrates with EU directives on AML/CFT, making anti-money laundering and counter-terrorism financing a central element of cryptocurrency regulation in Europe. For CASPs and other market participants, this means:

• Mandatory implementation of customer due diligence (CDD) procedures, continuous transaction monitoring, and identifying suspicious activities.
• Implementation of the Travel Rule for all cross-border crypto asset transfers.
• Increased requirements for transparency of operations and investor protection.

Cryptobusiness Regulation in El Salvador

Cryptobusiness Regulation in El Salvador today stands out with one of the most innovative and open approaches in the world. The development of the legislative base, the introduction of special licenses, and the focus on AML procedures have created a unique environment here for the legalization and protection of cryptocurrency services. This is reflected in both licensing requirements and AML regulation for market participants.

Licensing and AML in El Salvador

Unlike the EU, where MiCA regulation sets a complex multi-level structure, El Salvador offers a maximally simple model for licensing crypto services. The CNAD (National Commission for Digital Assets) regulator issues VASP (Virtual Asset Service Provider) licenses within 1-3 months with a minimal document package:

• Charter documents of the company, information about beneficiaries, and KYC procedures.
• Description of the business model and basic AML policies that comply with FATF standards but without excessive bureaucracy.
• No obligatory requirements for whitepapers and corporate governance.

Company Registration in El Salvador: Pros and Cons

The key advantage of registering legal entities in El Salvador is speed and low costs. Government support of crypto business, the absence of complex reporting, and flexibility of AML procedures make the jurisdiction attractive for startups and small companies. However, there are also limitations:

• The jurisdiction’s reputation still lags behind the EU and the UK, which can complicate access to banking services in Europe.
• For cross-border operations and working with institutional investors, additional legal support will be required.
• Risks for small and medium businesses are associated with the uncertainty of international recognition of licenses and the need for integration with global AML standards.

Comparison of Jurisdictions: EU, Asia, Africa

For international crypto projects, choosing a jurisdiction is a balance between compliance requirements, market entry speed, and opportunities for innovations. In Asia (Singapore, Hong Kong), digital assets regulation is based on transparency and technological neutrality principles, but it requires local presence and KYC/AML implementation at a global standard level.

MiCA or Regulation in El Salvador – What to Choose?

Choice of Jurisdiction and Preparation for MiCA

Choice of jurisdiction and preparation for MiCA becomes one of the key stages for crypto projects planning to operate in the European Union. The legislation establishes unified requirements for issuers and service providers, so a competent choice of country of registration and early preparation for the new MiCA standards determines how quickly and efficiently the business will adapt to the new rules.

MiCA Implementation: What Needs to Be Done?

COREDO’s experience shows that successful adaptation to MiCA regulation requires a phased approach:

1. Conduct an internal audit of corporate structures, business processes, and existing compliance policies.
2. Develop a MiCA implementation strategy: identify key risk zones, assess compliance costs, plan AML/KYC automation.
3. Prepare whitepaper and documentation in accordance with MiCA requirements for the business.
4. Establish partnerships with regulators and professional associations for quick information exchange and obtaining clarifications on complex issues.

Alternative Jurisdictions for Business

Deciding on jurisdiction choice should be based on an analysis of the business model, target markets, and compliance readiness. Alternative jurisdictions (El Salvador, Singapore, Mauritius) become optimal if:

• Your business model requires quick market entry and cost minimization.
• The project is focused on innovations and flexibility, not on institutional investors in the EU.
• There is a need to diversify corporate structures and reduce operational costs.

How to Evaluate Compliance ROI?

Evaluating MiCA compliance ROI involves not only analyzing direct costs but also forecasting long-term consequences for companies:

• Operational expenses: MiCA compliance implementation increases costs by 20-40% in the first year but reduces the risk of fines and blockages.
• Long-term planning: Companies investing in compliance automation gain a competitive advantage by reducing costs and speeding up processes.
• Innovation and market diversification: A multi-jurisdictional presence strategy allows maintaining flexibility and adapting to regulatory changes.

Conclusions and Recommendations for Business

Checklist for choosing a jurisdiction:

• Evaluate licensing and compliance requirements in each jurisdiction.
• Analyze access to banking services and jurisdiction reputation.
• Calculate timelines and costs for legal entity registration and obtaining a license.
• Consider risks for small businesses and opportunities for innovation.

Algorithm for preparing for MiCA:

1. Internal audit of processes and structures.
2. Development of compliance strategy and automation of AML/KYC.
3. Preparation of whitepapers and information disclosure according to MiCA.
4. Interaction with regulators and professional associations.

Tips for reducing compliance costs:

• Utilize automated solutions for transaction monitoring and CDD.
• Engage external experts for audits and process optimization.
• Diversify corporate structures to reduce operational costs.

Recommendations for jurisdiction diversification:

• Consider a multi-jurisdictional model with registration in the EU, El Salvador, and Asia.
• Utilize the advantages of each jurisdiction for tax optimization and market access.

Key Questions for Entrepreneurs

What strategic risks does MiCA implementation pose for international crypto companies?

How does MiCA affect the costs and timelines for market entry in the EU for crypto business?

What are the advantages and disadvantages of regulation in El Salvador compared to MiCA?

How to ensure compliance with the Travel Rule and AML requirements within MiCA?

What new requirements for whitepapers and information disclosure does MiCA impose?

How does MiCA impact corporate governance of crypto companies?

If you need to choose a jurisdiction, prepare a company for MiCA regulation, or minimize risks of implementing new standards, the COREDO team is ready to offer comprehensive solutions based on international experience and deep market knowledge.

Why? It’s not just about the low corporate tax rate—it’s about strategic location, unique investment climate, and flexible corporate structures.

The practice of COREDO confirms: after the UK’s exit from the EU, the Irish jurisdiction became the main gateway to the Eurozone for companies from Asia and the CIS, focused on export-import operations, fintech, and IT services.

# Economic and Political Stability as a Key to Long-Term Investments

Ireland’s macroeconomic indicators: among the best in Europe: GDP growth rates consistently exceed the European averages, unemployment is below 5%, and public debt is one of the most manageable in the region. Legislation is predictable and transparent, and the judicial system is built on the British common law model, which facilitates the resolution of corporate disputes.

Brexit has increased Ireland’s attractiveness for international business: companies that previously operated through London are massively moving their European structures to Dublin to maintain access to EU markets and Eurozone financial instruments. A solution developed by COREDO for one of the largest Asian fintech holdings allowed the client not only to minimize cross-border payment costs but also to ensure legal protection of intellectual property according to European standards.

If you are looking for a jurisdiction with a stable economy, political neutrality, and the most transparent regulatory environment: I recommend reading the article to the end. I will detail the key steps of company registration in Ireland, taxation features, compliance, and innovation support, and provide practical recommendations for entering EU markets.

Company Registration in Ireland – Steps

# Step-by-Step Guide on Company Registration in Ireland

Company registration in Ireland is a process that requires strategic planning and deep understanding of local requirements. COREDO’s experience shows: success begins with the choice of the optimal organizational-legal form and competent construction of the management structure.

Main registration steps:

• Choosing a unique name and reserving it at the Companies Registration Office (CRO).
• Preparation of founding documents: Memorandum and Articles of Association, information about directors (at least one EEA resident), secretary, and shareholders.
• Minimum authorized capital – from €1, making the entry threshold accessible for startups and international groups.
• Opening a bank account in an Irish bank, preparing KYC documents, and confirming the source of funds.
• Registering with tax authorities and obtaining a VAT number (if necessary).
• Entering the company into the register of beneficial owners to ensure transparency.

The COREDO team has implemented dozens of projects on registering holding companies for clients from the CIS and Asia, optimizing the ownership structure taking into account EU transparency and compliance requirements.

# Choosing the Organizational-Legal Form: LTD, PLC, Holding

In Ireland, the most popular forms are:

• Private Company Limited by Shares (LTD): optimal for small and medium-sized businesses, does not require the publication of financial statements, and is flexible in management structure.
• Public Limited Company (PLC): suitable for large projects and going public, requires stricter accounting and a minimum capital of €25,000.
• Holding Company: used for managing international assets, tax optimization, and intellectual property protection.

COREDO’s practice confirms: for IT companies and fintech, LTD with a flexible management structure and nominee services often becomes the optimal choice. For international groups—a holding structure with subsidiaries in various EU jurisdictions.

# Legal Support for Business in Ireland: Why It Is Needed

Legal support is not just a formality but a strategic risk management and compliance tool. The COREDO team supports clients at all stages: from registration and licensing to the construction of a corporate governance system and the introduction of AML/KYC procedures.

Corporate Tax and Incentives in Ireland

# Corporate Tax Rates and Tax Incentives

Ireland is known for having one of the lowest corporate tax rates in the EU, 12.5% on trading income. A rate of 25% applies to passive income (e.g., interest and royalties). For companies investing in R&D, innovations, and IT, additional tax incentives apply: refund of up to 25% of research expenses, patent regimes, and reduced rates for income from intellectual property.

# Double Taxation Avoidance Agreements and Their Application

Ireland has signed Double Taxation Avoidance Agreements (DTA) with more than 70 countries, including the USA, Japan, South Korea, China, India, most EU and CIS countries. This allows minimizing the risk of double taxation in cross-border operations and efficiently structuring international holdings.

For example, the agreement between Ireland and the USA allows IT companies from Asia and the CIS to receive income from American clients through an Irish structure with minimal tax costs. COREDO’s practice shows: proper application of DTA and transfer pricing mechanisms allows reducing fiscal risks and increasing business transparency for investors.

# Taxation Features for Foreign and Holding Companies

In one of the COREDO cases, a structure was implemented for an Asian pharmaceutical group in which the Irish holding managed the IP portfolio and licensed technologies to European and American subsidiaries, ensuring not only tax efficiency but also asset protection at the EU level.

Thus, Ireland combines flexible tax regimes for businesses and international agreements, forming a reliable basis for further consideration of AML compliance and financial monitoring issues.

AML Compliance and Financial Monitoring in Ireland

# Requirements for KYC and Financial Monitoring for New Companies

Since 2023, Ireland has introduced updated KYC standards and financial monitoring in line with the 6th EU Anti-Money Laundering Directive (AML). For new companies, it is mandatory to:

• Verify all ultimate beneficial owners (UBO) and directors.
• Confirm the source of funds and business reputation.
• Register in the beneficial owners register.
• Build an internal transaction monitoring system.

Particular attention is given to non-residents: banks and payment institutions require an extended set of documents and may conduct an in-depth Due Diligence. COREDO’s experience shows that preliminary preparation of a KYC profile and a transparent ownership structure significantly accelerates account opening and minimizes rejection risks.

# Best Practices in AML and Risk Prevention

Implementing internal AML/CTF policies, regular staff training, automating transaction monitoring, and interacting with regulators are mandatory elements for financial companies and holdings. In a recent COREDO project for a fintech company from Singapore, an electronic document management and automatic compliance control system was implemented, allowing not only to meet the Central Bank of Ireland’s requirements but also to enhance investor trust.

Thus, competent preparation for adhering to new KYC and AML standards serves as a foundation for successfully launching a business, after which it is worth considering available state support measures and innovative opportunities for companies in Ireland.

State Support and Innovation: What is Available to Businesses

# State Grants and Programs for Startups

• Enterprise Ireland grants for R&D, entering foreign markets, hiring specialists.
• Acceleration and incubation programs in innovation clusters (e.g., Dublin Tech Cluster, Cork Innovation Hub).
• Tax incentives for investors (SURE, EII) and startups (Start-Up Refunds for Entrepreneurs).

A solution implemented by COREDO for a fintech startup from the Czech Republic allowed the client to receive a grant of €150,000 and access to venture capital under the Enterprise Ireland program, ensuring a quick entrance to EU markets and business scaling.

# Venture Investments and Innovation Clusters

The startup ecosystem in Ireland includes more than 250 venture funds and business angels, with investment volumes in innovative industries (IT, fintech, pharma, biotech) annually exceeding €1.5 billion. Innovation clusters and business incubators provide not only financing but also mentoring support, access to infrastructure, and international partners.

For companies focused on export-import operations, Ireland offers unique opportunities through working with global logistics and financial hubs in the EU. COREDO’s practice shows that startups choosing the Irish jurisdiction gain not only access to venture capital but also support in intellectual property issues, licensing, and entry into international markets.

Business Risks and Compliance in Ireland

# Main Risks for Foreign Investors

Despite the obvious advantages, doing business in Ireland involves several risks:

• Currency fluctuations (especially when dealing with non-European contractors).
• Strengthening regulatory requirements in the field of AML and KYC.
• Possible changes in tax legislation within the framework of global EU and OECD initiatives.
• The need for fiscal transparency and disclosure of beneficial owners.

The COREDO team recommends building a corporate risk management system according to international standards (ISO 31000, COSO) and regularly conducting a compliance audit.

# Comparison of Ireland with Other EU Jurisdictions

COREDO’s practice confirms: for companies focused on international expansion, Ireland often turns out to be the most balanced jurisdiction in terms of tax, legal, and infrastructure factors.

Business in Ireland: How to Open and Operate

# Checklist for Entrepreneurs: From Registration to Market Entry

1. Assess strategic goals and choose the optimal corporate structure (LTD, holding, PLC).
2. Prepare founding documents and a KYC package for all participants.
3. Reserve a name and submit documents to CRO.
4. Open a bank account in Ireland, ensure source transparency.
5. Register with tax authorities, obtain a VAT number.
6. Implement internal AML/KYC policies and an electronic document management system.
7. Register in the beneficial owners register.
8. Consider opportunities for grants, acceleration, or venture funding.
9. Ensure the protection of intellectual property and set up a corporate governance system.
10. Regularly update compliance procedures and monitor legislative changes.

# Recommendations for Choosing a Consulting and Legal Partner

Choosing a partner is a key success factor. Evaluate:

• Experience in registering legal entities in the EU and supporting holding structures.
• Expertise in AML compliance and financial monitoring.
• Depth of understanding of international reporting standards and due diligence.
• Practical cases and client recommendations.

The COREDO team supports clients at all stages: from strategic planning and registration to entering EU markets, obtaining licenses, and building a corporate governance system. In one case for a fintech group from Asia, a comprehensive structure with an Irish holding, and subsidiaries in the Czech Republic and Slovakia was implemented, ensuring not only tax optimization but also resilience to regulatory risks.

Frequently Asked Questions and Key Conclusions

# Brief Insights and Recommendations

# FAQ: Answers to Popular Questions

What are the actual costs and ROI when opening a company in Ireland?
Registration of an LTD starts at €1,200, with annual support from €2,000. ROI depends on the industry: for IT and fintech, the return on investment often occurs as early as the 2-3rd year thanks to tax benefits and access to EU markets.

What difficulties might arise in compliance and AML checks in Irish banks?
Main difficulties: transparency of structure requirements, source of funds confirmation, and KYC for non-residents. The solution involves prior preparation of a full document package and implementation of internal AML policies.

How to ensure long-term asset and intellectual property protection through the Irish structure?
Use a holding company for IP ownership, implement patent and licensing regimes, and execute international investment protection agreements. COREDO’s practice confirms: such a strategy minimizes risks and enhances investment appeal.

If you are considering Ireland as a jurisdiction for international expansion, the COREDO team is ready to offer solutions that take into account the specifics of your business, industry risks, and modern market requirements.

Over the years, the COREDO team has often observed how timely trademark registration in the European Union becomes a key success factor for international companies, IT startups, and e-commerce projects. In the rapidly digitizing environment, cross-border competition, and tightening compliance procedures, intelligent management of intellectual assets is not just a formality but a tool for business growth and protection.

In this article, I will thoroughly discuss the most pressing issues faced by entrepreneurs from Europe, Asia, and the CIS: from choosing a registration strategy to the subtleties of legal protection and tax planning. If you want to understand how EU trademark registration can become your competitive advantage and how to avoid typical pitfalls: read on. Here you will find not only answers but also practical tools, proven by COREDO’s experience.

Trademark in the EU: what it is and why it is needed

European trademark: what is it and why?

COREDO’s practice confirms: for international holdings, IT companies, and startups aimed at scaling, the registration of a European trademark becomes the foundation of brand strategy and effective protection of intellectual assets. This approach minimizes the risks of copying, parallel imports, and unfair competition.

Registration of a trademark in the EU, advantages

• Cross-border protection: One registered EUTM provides legal protection in all 27 EU countries, significantly reducing the costs of legal support and monitoring violations.
• Simplification of entering EU markets: Centralized registration through EUIPO allows quick launching of new products and services without spending time on separate national procedures.
• Increase in brand value: According to recent WIPO research, having a registered trademark in the EU increases the company’s investment attractiveness and eases M&A transactions, franchising, and licensing.
• Flexibility for multi-product companies: Strategic reserving of Nice Classification classes allows protecting not only current but also future business directions.

Thus, EUTM registration becomes the foundation for successful brand promotion in Europe and optimization of IP asset management.

Trademark registration in the EU: step by step

How to register a trademark in the EU?

1. Search and preliminary uniqueness check: Using EUIPO tools and international databases helps identify potential conflicts and minimize opposition risks. COREDO’s experience shows that quality due diligence TM at this stage reduces the likelihood of refusal by 40%.
2. Choosing Nice Classification classes for the EU: Classification according to the Nice Classification of Goods and Services determines the scope of legal protection. For multi-product and IT companies, it’s crucial to strategically reserve classes considering future expansion.
3. Preparation and application submission: The application is submitted through the EUIPO electronic portal, including applicant details, trademark image, list of Nice Classification classes, and supporting documents.
4. Examination and publication: After a formal check, the application is published in the EUIPO bulletin. This marks the start of a three-month opposition period.
5. Receiving electronic registration certificate: In the absence of opposition or successful resolution of disputes, an electronic certificate is issued, confirming legal protection in all EU countries.

How much does trademark registration cost?

• Cost of trademark registration: The basic EUIPO fee for submitting an application is 850 euros for one class, plus 50 euros for the second class and 150 euros for each subsequent class. Additional expenses may arise if legal support or filing objections are needed.
• Trademark validity period: The European trademark is valid for 10 years with the possibility of unlimited renewal for similar periods upon payment of the corresponding fees.
• Renewal of trademark in the EU: The renewal application is submitted through the EUIPO personal account no earlier than 6 months before the expiration date.

Application submission and opposition period

Grounds for refusal and trademark opposition

Absolute and relative grounds for refusal

• Absolute grounds: lack of distinctiveness, overly generic or descriptive designation, similarity to state symbols, violation of public order.
• Relative grounds: existence of previously registered trademarks with a high degree of similarity, infringement of third-party rights, overlap with Nice Classification classes.

A common mistake companies make is incorrect choice of Nice Classification classes or trying to register a designation already occupied in neighboring markets. The solution developed at COREDO includes automated checks across all relevant databases and analysis of court precedents on TM in the EU.

What to do in case of third-party objections

• Promptly analyze the grounds for objection and gather evidence of good faith use or distinctive character.
• Prepare a motivated response and, if necessary, enter negotiations with the opponent.
• In case of refusal, initiate an appeal procedure in the EUIPO Board of Appeal or take the case to the EU Court.

Trademark registration: national, European, international

When to choose a national or European trademark

For companies operating in only one country, national registration is more practical. If expansion into several EU countries is planned or cross-border licensing is required, EUTM becomes the optimal choice. For multi-product companies, it’s important to strategically reserve Nice Classification classes with growth prospects in mind.

Trademark registration under the Madrid Protocol

Trademark Protection in Europe

How to protect a trademark from copying

Modern tools for monitoring trademark rights violations in the EU include automated counterfeit search systems and digital enforcement: addressing violations on e-commerce platforms and social networks. Solutions implemented by COREDO for international clients allow tracking unauthorized brand use in real-time and promptly initiating legal protection.

Franchising or license: what to choose?

Trademark protection in e-commerce and D2C

In the e-commerce and D2C segment, trademark protection becomes especially important: speed of response to violations, integration of TM into the marketing strategy, and collaboration with platforms for digital enforcement are critical. For IT companies and startups, the COREDO team recommends the implementation of automated monitoring systems and regular updating of the IP rights portfolio, considering new business directions.

Trademark Management and Taxes

Trademark valuation: due diligence and cost

Advantages of a trademark for business

Impact of rebranding on TM rights

Rebranding or business expansion requires timely updating of the trademark portfolio and making changes in EUIPO. For long-term protection, it’s important to strategically reserve new Nice Classification classes and regularly audit IP rights. COREDO solutions help minimize the risk of rights loss during brand updating and ensure continuity of legal protection.

Legal Support: what is it?

How to choose a legal partner

• Deep expertise in international intellectual property law and EU court practice.
• Experience with cross-border projects, franchising, and licensing.
• Availability of automated monitoring and compliance tools.
• Transparency in communications and readiness to accompany the client at all stages, from due diligence to legal protection.

Practical steps for business

Checklist for TM registration and protection in the EU:

• Conduct a TM uniqueness search and risk analysis.
• Determine strategy and choose Nice Classification classes.
• Prepare and submit an application through EUIPO.
• Monitor publication and opposition period.
• Obtain the electronic registration certificate.
• Set up automated monitoring of violations.
• Develop a tax strategy considering TM ownership.
• Regularly audit and update the IP rights portfolio.

Common mistakes to avoid:

• Ignoring preliminary search and due diligence.
• Incorrect choice of Nice Classification classes.
• Untimely renewal or updating of rights.
• Lack of a system for monitoring violations and digital enforcement.

Key conclusions and practical advice

• European trademark – is not only a legal protection tool but also a strategic asset influencing brand value, investment attractiveness, and scaling opportunities.
• A comprehensive approach to TM registration, monitoring, and portfolio management minimizes legal and reputational risks.
• For startups, IT companies, and international holdings, registering a trademark in the EU becomes a mandatory element of the strategy for entering new markets and protecting intellectual assets.
• COREDO’s practice proves: competent legal support, compliance automation, and integration of TM into the marketing strategy are key factors for long-term success.

Advantages and Limitations of ZISIF §15 for International Business

Why has ZISIF §15 become the choice for many international companies and family offices? In practice, the COREDO team has implemented dozens of projects where the key advantages have been:

• Flexibility in choosing an investment strategy: allowed to invest in a wide range of assets, including securities, real estate, startups, cryptocurrencies, and even unconventional instruments.
• Minimal regulatory barriers: no minimum capital requirements, no mandatory license for a management company (subject to the limit on the number of investors and assets up to 100,000,000 EUR).
• Scalability: the fund structure allows for the attraction of new investors (up to 20 non-qualified or unlimited number of qualified), as well as integration into international holding structures.
• Simplicity of corporate management: founders can use s.r.o. or a joint-stock company, retaining control over the fund and profit distribution.
• Reduced administrative burden: simplified reporting and compliance requirements compared to traditional collective investment funds.

Comparison of ZISIF §15 and Other Investment Funds (FKI, SICAV, EU and Asia Structures)

Choosing a fund structure is a strategic decision that affects the tax burden, level of compliance, and scalability opportunities. For clarity, I will provide a comparative table:

Registration of ZISIF §15 Fund in the Czech Republic

Legal and Organizational Requirements for Fund Registration

Registering a fund in the Czech Republic using the ZISIF §15 model begins with choosing the optimal corporate structure. In practice, a limited liability company (s.r.o.) or joint-stock company is most commonly used. This approach ensures management flexibility, transparency of beneficial ownership, and limitation of founder liability.

Key stages:

• Preparation of founding documents, including the charter, internal regulations, andagreements between founders.
• Determination of ownership structure and share distribution, considering the requirements for beneficial ownership and fiduciary management.
• Appointment of a director and, if necessary, an asset management company in the Czech Republic.
• Opening of a corporate account in a Czech or European bank.

Documents for ZISIF §15 Fund Registration and Interaction with the Czech National Bank

To submit an application to the Czech National Bank (ČNB), a comprehensive set of documents is required, including:

• Founding documents (charter, founding agreement).
• A detailed business plan of the investment fund with a description of the investment strategy, target assets, and profitability scenarios for PRIIPs.
• List of founders and beneficiaries with confirmation of sources of funds and ownership structure.
• KID (Key Information Document): a key information document mandatory for PRIIPs Regulation compliance.
• Documents confirming the qualifications of the management company or director.
• Protocol on the issuance of fund shares (in the case of a joint-stock structure) or share distribution (for s.r.o.).

Timeline and Cost of Registration, Process Stages

Process stages:

• Preparation and agreement on the corporate structure (1-2 weeks).
• Collection and processing of documents, preparation of the business plan and KID (2-4 weeks).
• Submission of the application and documents to ČNB, interaction with the regulator (4-8 weeks).
• Obtaining the permit and registration documents, fund launch.

Investment Strategy of ZISIF §15

Investment Strategy Requirements and Permitted Assets

ZISIF §15 provides broad opportunities for crafting an individual investment strategy. The law allows the inclusion in the portfolio of:

• Traditional financial instruments (stocks, bonds, derivatives).
• Real estate and infrastructure projects.
• Startups, venture investments, and innovative companies.
• Cryptocurrencies and digital assets (subject to AML compliance).
• Family and corporate capital, which is particularly relevant for inheritance structuring and family asset management.

Organization of Fund Management and Collective Investments

Asset management in the EU requires not only professional expertise but also strict adherence to fiduciary management standards. In a ZISIF §15 structure, it is possible to appoint an asset management company in the Czech Republic or for the fund director to manage independently. It is essential to ensure process transparency, regular reporting to investors, and compliance with all collective investment requirements in the Czech Republic.

Performance Metrics and ROI: How to Evaluate Fund Results

Evaluating the effectiveness of a fund is built on several key metrics:

• ROI (Return on Investment), a key indicator for investors reflecting investment profitability.
• Profitability scenarios for PRIIPs: modeling various portfolio development scenarios and their impact on final profitability.
• Comparing profitability with similar funds in the EU and Asia, allowing investors to make informed decisions about capital diversification.

Compliance and AML for ZISIF §15

AML and Compliance Procedures: Identification, Screening, Documentation

Adherence to anti-money laundering legislation (AML) and compliance is an integral part of managing any investment fund in the Czech Republic. For ZISIF §15, simplified but mandatory procedures apply:

• Identification and screening of investors, including verification of sources of funds and beneficial ownership.
• Maintaining AML reports for the fund, documentation storage, and regular data updates.
• Preparation and updating of KID (Key Information Document) in accordance with PRIIPs Regulation requirements.
• Implementation of internal policies for income legalization and prevention of terrorism financing.

Reporting, Audit, and Interaction with the Regulator

ZISIF §15 is obliged to maintain regular reporting to the Czech National Bank, including:

• Financial reporting according to established standards.
• Reports on asset movements and investment activities.
• Audit opinions (upon reaching certain asset thresholds).
• Prompt information to the regulator regarding significant changes in the fund structure or investor composition.

Compliance with PRIIPs Regulation and OtherEuropean Requirements

COREDO supports clients at all stages – from initial documentation preparation to fund integration into international tax structures, which is critically important for long-term success.

Exit Strategies and Integration of ZISIF §15

Exit Strategies for Investors and Founders

An investor’s exit from a ZISIF §15 fund can be realized through the sale of a share, buyout of shares by the fund, or transfer of rights to third parties. It is important to pre-determine the mechanisms for share valuation, exit timelines and conditions, as well as tax implications for the investor and the fund.

Scaling the Fund: Attracting New Investors and Expanding Geography

In practice, COREDO has implemented scenarios where a fund, upon reaching the asset limit, transformed into a more complex structure (e.g., FKI) while maintaining management and asset continuity.

Integration of the Fund into International Holding and Tax Structures

ZISIF §15 can be integrated into international holding structures to optimize taxation, protect assets, and increase investment attractiveness. It is important to consider the features of international tax planning, requirements for beneficial ownership, and controlled foreign company (CFC) rules in the investors’ countries of residence.

Conclusions and Recommendations for Business

• Practical Steps for Registration: clear planning, document preparation, and professional support at all stages are the key to successfully launching a fund.
• Legal Support for Investment Funds: COREDO’s experience shows that comprehensive support minimizes risks and accelerates interaction processes with regulators.
• Risk Minimization: implementation of modern compliance and AML solutions, reporting automation, and transparent corporate structure.
• Reliable AML Compliance: regular investor screening, documentation updates, and integration of digital tools.
• Comprehensive business support: from jurisdiction selection to scaling and investor exit.
• Saving Time and Resources: process optimization, reduced administrative burden, and automation of fund management.
• Best Practices in Collective Investment Management: transparency, regular reporting, and flexible investment strategy.
• Innovative Risk Management Approaches: asset diversification, digital solutions, and integration into international structures.

91% of clients choose a forex broker with a license, and 7 out of 10 bank accounts for brokers are opened only when a Forex trading license is available. In an era of tightened regulation and global competition, a forex broker’s license has long ceased to be a mere formality and has become a key factor for trust, access to international payments, and investor protection. Today, lacking a license is not just a restriction on working with banks and payment systems but also a reputational risk that can cost a business.

My years of experience show that a wise choice of jurisdiction and obtaining a forex broker license are not just legal formalities but strategic assets that determine a company’s value, stability, and scaling potential. In this article, I will analyze in detail how to choose a country for registering a forex broker, what licenses exist, how requirements differ across jurisdictions, and how the COREDO team helps clients build transparent, sustainable, and profitable forex businesses. I recommend reading to the end, as you will receive not only answers to key questions but also practical tools for making well-informed decisions.

Jurisdictions for Forex Broker License

Choosing a jurisdiction for a forex business is always a balance between the cost of a forex broker license , registration speed , capital requirements , and the level of regulation. Registering a forex broker in the right country opens doors to international markets, reduces operational and tax costs, and minimizes strategic and reputational risks.

Therefore, a wise choice of registration country becomes a key step in developing a successful forex business and requires a thorough assessment of all factors.

How to Choose a Jurisdiction for a Forex License

COREDO’s experience shows that the optimal choice of jurisdiction is based on a comprehensive assessment of the following factors:

• Forex License Requirements: Include minimum capital requirements , the presence of a local office , corporate structure, and internal control requirements. For instance, for a Forex license in Estonia, the minimum capital starts at 50,000 EUR, whereas in the UK: from 730,000 GBP.
• Requirements for Forex Companies’ Executives: Regulators (EFSA, CySEC, FCA, ASIC) impose strict requirements on experience, qualifications, no criminal record, and the reputation of directors. At COREDO, we prepare a dossier for each executive, including confirmation of professional competence and certification of capital market specialists.
• Compliance for Forex Brokers: Involves developing a business plan for the forex license, KYC/AML procedures, internal policies, and automating due diligence processes. COREDO’s practice confirms that thorough preparation of the compliance package speeds up the process of obtaining a Forex license and reduces the likelihood of rejection.
• Internal Control and Audit: International standards require the implementation of internal control systems, regular audits, and transparent financial reporting. This is not only a regulatory requirement but also a risk management tool that builds client trust.
• Financial Stability: Regulators analyze not only capital but also funding sources, income and expense structures, and the availability of reserves to cover operational and market risks.

Offshore or Onshore Forex License?

The market offers both offshore and onshore licenses for forex brokers. The solution developed at COREDO is always based on the analysis of the client’s objectives, target markets, and long-term goals.

Multi-jurisdictional Licensing is becoming an increasingly popular tool for risk diversification and business scaling. COREDO’s team has implemented projects for simultaneous registration of forex brokers in the EU and Asia, allowing clients to optimize ROI and increase resilience to regulatory changes.

Forex Broker License: Popular Countries

In COREDO’s practice, the most in-demand Forex licenses are in Estonia, Cyprus, the UK, Australia, the British Virgin Islands, as well as in Panama and Mauritius. Each of these options has its features, advantages, and limitations.

Forex License in Estonia – Requirements

Estonia: a leader in speed and transparency for obtaining a Forex trading license. The regulator EFSA imposes clear requirements:

• Minimum Capital: from 50,000 EUR for an STP broker and up to 730,000 EUR for a Market Maker.
• Documents: business plan, proof of capital sources, corporate structure, information about executives, AML/KYC internal policies.
• Timeframe: 3–6 months with a well-prepared document package.
• Benefits: high transparency, access to the European market, modern digital tools for compliance automation.
• Limitations: requirement to maintain an office and corporate secretary in Estonia, regular reporting and auditing.

COREDO’s experience shows that a Forex license in Estonia is particularly advantageous for companies focused on the EU and looking to enter the market quickly with minimal rejection risks.

Forex License in Cyprus: What You Need to Know

The CySEC is a recognized European regulator with developed licensing practices for STP and Market Maker brokers.

• Minimum Capital: from 125,000 EUR for STP and 730,000 EUR for Market Maker.
• Requirements: local office presence, qualified directors, transparent corporate structure, detailed business plan, and internal Due Diligence procedures.
• Timeframes: 4–8 months.
• Advantages: access to European investors, high reputation, flexible tax conditions.
• Limitations: strict AML/KYC control, regular inspections and audits, corporate governance requirements.

COREDO’s practice confirms: a Forex license in Cyprus is the optimal choice for companies targeting the EU and Middle East.

Forex FCA License in the UK

The FCA is one of the most prestigious regulators in the world. A Forex license in the UK ensures maximum trust from clients, investors, and banks.

• Minimum Capital: 730,000 GBP.
• Requirements: impeccable reputation of managers, transparent ownership structure, high AML/KYC standards, implementation of internal control and financial monitoring systems, regular reporting.
• Timeframes: 6–12 months.
• Advantages: prestige, access to global markets, client interest protection, compliance with international Forex regulatory standards.
• Limitations: high cost of license and maintenance, lengthy approval process, stringent IT infrastructure, and data security requirements.

The solution developed at COREDO for entering the UK market includes comprehensive preparation of compliance documents and support at all interaction stages with the FCA.

Forex License on BVI: Risks and Features

BVI: a popular offshore jurisdiction for forex brokers focused on quick business start-up and minimal costs.

• Minimum Capital: 100,000–250,000 USD.
• Timeframes: 2–4 months.
• Advantages: low cost of license, simple corporate structure requirements, management flexibility.
• Risks: limited access to European and Asian banks, reputational risks, heightened AML attention, difficulties in attracting institutional clients.

The COREDO team always emphasizes the need for clients to carefully assess reputational and operational risks when choosing an offshore license for a forex broker.

Forex License in Panama, Australia, Mauritius

Panama, Australia, and Mauritius are attractive alternatives for multi-jurisdictional licensing.

• Panama: minimum capital of 150,000 USD, quick registration time (2–3 months), flexible tax conditions. Regulator: Superintendency of Capital Markets.
• Australia: ASIC imposes strict capital requirements (from 1 million AUD), management’s experience, and internal control. A Forex license in Australia opens access to the Asian market and institutional investors.
• Mauritius: minimum capital of 234,000 USD, average registration time (3–6 months), flexible corporate structure requirements, option to open multi-currency accounts.

COREDO’s experience shows that multi-jurisdictional licensing allows optimizing costs, increasing business stability, and reducing regulatory risks.

Let’s proceed with a comparative analysis of the key parameters of each jurisdiction.

Comparison of Jurisdictions by Parameters

A detailed analysis of jurisdictions allows the selection of the best conditions for obtaining a license depending on the company’s objectives.

Forex License Requirements

Licensing financial companies in the Forex sector requires not only capital but also a structured corporate governance system, transparency, and compliance with international AML/KYC standards.

AML/KYC: International Control Standards

Modern Forex regulation requires implementing comprehensive AML/KYC procedures, transaction monitoring automation, regular updates of internal policies, and due diligence on each client. COREDO implements solutions that automate compliance processes, reduce operational costs, and minimize the risk of fines and account blocks.

Requirements for the Qualification of Executives

Key regulators (EFSA, CySEC, FCA, ASIC) demand confirmation of professional competence from executives, relevant experience, and a clean criminal record. Capital market specialist certification and regular staff training are mandatory elements of corporate governance in forex companies. COREDO’s experience shows that investment in the team significantly reduces regulatory and operational risks.

Financial Reporting for Forex Companies

Regular financial reporting, external audit, implementation of internal control systems, and transparent income structure are mandatory requirements for all licensed forex brokers in the EU and Asia. COREDO’s solutions include implementing automated reporting systems and preparing for annual audits by international standards.

STP and Market Maker: What’s the Difference?

Choosing between an STP (Straight Through Processing) and a Market Maker license determines the business model, transparency level, and capital requirements.

• STP: the broker passes trades to the external market, minimizing conflicts of interest and increasing client trust. Capital requirements are lower, transparency is higher, and market manipulation risks are minimal.
• Market Maker: the broker sets quotes and can act as a counterparty to client trades. Capital requirements are higher, regulatory control is stricter, but profitability is higher due to spreads and commissions.

COREDO’s practice shows that for entering the European market and attracting institutional clients, an STP license is optimal, while for Asian and offshore markets, a Market Maker license is preferable if a robust risk management system is in place.

Risks and ROI of Forex Jurisdictions

Strategic planning for entering the Forex market requires assessing not only the cost of a forex broker license but also potential ROI and various risks, from regulatory to sanctions.

ROI of Countries for Forex Broker Licensing

Key ROI metrics: license and maintenance cost , market entry speed , access to banking services , client trust level , and scalability potential . COREDO’s solution always builds on modeling financial flows, analyzing tax burden, and assessing business growth prospects in the chosen jurisdiction.

Fines, Sanctions, and Loss of License

Violating licensing requirements, non-compliance with AML/KYC, insufficient transparency, or errors in corporate governance can lead to fines, account blocks, license revocation, and business loss. International regulation is tightening, and only a systematic approach to compliance and risk management can protect client and investor interests.

Forex Broker License: How to Obtain?

COREDO’s team has implemented dozens of projects for registering forex brokers in the EU, Asia, and offshore jurisdictions. The process of obtaining a forex license includes:

Steps for Obtaining a Business License

1. Developing a Forex License Business Plan: financial model, market entry strategy, description of corporate structure.
2. Preparation of the Compliance Package: internal policies, AML/KYC procedures, due diligence of managers and shareholders.
3. Submitting Documents and Interacting with the Regulator: support at all stages, responding to queries, refining documents.
4. Opening Bank Accounts and Launching IT Infrastructure: choosing payment partners, implementing internal control and data security systems.
5. Obtaining a License and Commencing Operations: integration with liquidity providers, setting up reporting, staff training.

Legal Support: How to Reduce Costs

Comprehensive support from COREDO includes not only legal support for forex brokers but also optimization of licensing costs, compliance process automation, and team training. This approach allows clients to save time and resources, minimize rejection risks, and speed up market entry.

Conclusions and Advice for Entrepreneurs

A Forex trading license is not just a formal requirement but a strategic tool for growth, trust, and business protection. Choosing the jurisdiction, license model (STP or Market Maker), building an AML/KYC system, and corporate governance are key factors for the long-term stability and scalability of a forex company . COREDO’s experience confirms: only a systematic and professional approach to licensing allows entering international markets, attracting institutional clients, and ensuring a return on investment in licensing. If your goal is to build a transparent, sustainable, and profitable forex business, the COREDO team is ready to be your reliable partner at every stage of this journey.

But are you ready to jeopardize your company’s reputation, assets, and strategic prospects due to one underestimated deal?

Lack of comprehensive verification is not only a risk of fines, blocks, and legal proceedings but also a real threat to strategic initiatives: from entering new markets to attracting investments.

In this article, I reveal a step-by-step algorithm for independent counterparty verification, share tools, checklists, and practical cases from COREDO that will help not only minimize risks but also enhance your business’s investment appeal. If you want to get a practical guide to due diligence, adapted to the realities of the EU, Asia, and the CIS, I recommend reading to the end.

Due diligence: what it is and why to check a counterparty

In international business, due diligence becomes a standard of corporate governance and internal control. Compliance officer, KYC, and AML procedures, counterparty audit: these are now not only regulatory requirements but also a strategic risk management tool.

Goals of due diligence for business

• Risk assessment in working with counterparties: timely identification of signs of fraud, corporate conflicts, affiliation, and AML/CTF non-compliance.
• Prevention of financial and reputational losses: reducing the likelihood of account blocking, fines, legal disputes, and negative publications.
• Ensuring the legal purity of the deal: checking corporate documents, ownership chain, and history of court decisions.
• Compliance with international compliance standards: integrating a risk-oriented approach, automating due diligence, and implementing internal company policies.

Types of due diligence: legal, financial, operational, anti-corruption

• Legal due diligence: analysis of corporate structure, statutory documents, identifying affiliated persons, auditing corporate conflicts and court decisions.
• Financial due diligence: analysis of financial statements, debt obligations, assessing solvency and tax risks.
• Operational due diligence: checking business processes, internal policies, corporate governance, analyzing operational risks.
• Anti-corruption due diligence: identifying corruption schemes, analyzing conflicts of interest, checking compliance with international AML/CTF standards.

Counterparty verification: step-by-step instruction

Counterparty verification requires a systematic approach and step-by-step instruction: this reduces partnership risks and helps identify potential partner issues in a timely manner. For quality due diligence, it is important to form a team that can thoroughly assess both the legal and financial aspects of verification. Next, we will examine the key steps in organizing work and analyzing counterparty data.

Gathering a team for due diligence

In practice, COREDO has implemented dozens of projects where the success of due diligence was determined not only by the quality of tools but also by the competent organization of the process. It is important to define the goals of verification, gather a team with expertise in compliance, financial analysis, and corporate intelligence, appoint a responsible compliance officer, and implement internal control.

How to gather and analyze corporate documents

The first stage: auditing corporate documents: charter, registry extracts, meeting protocols, information about directors and shareholders. COREDO practice confirms: analysis of corporate structure and identification of affiliated persons allows early detection of fictitious companies, corporate conflicts, and hidden risks.

Verification of beneficiaries and ultimate owners

Proper verification of beneficiaries and identification of the ultimate beneficial owner (UBO): key to managing counterparty risks. The solution developed at COREDO includes analyzing the ownership chain, collecting supporting documents, checking for affiliation, and analyzing corporate connections through international databases.

Financial reporting and solvency

Financial due diligence: this is not just a balance check but a deep analysis of financial statements, debt obligations, assessing solvency, and tax risks. At COREDO, we apply both classical financial analysis methods and scoring systems, allowing for performance comparisons with industry benchmarks.

Customer verification for AML, sanctions, and PEP

Verification for AML/CTF compliance, sanctions lists, and PEP (politically exposed persons): a mandatory stage for any international business. The COREDO solution includes automated checks against international lists, regular database updates, and KYC procedure integration.

Reputation and business reliability assessment

Managing reputational risks: a task requiring a comprehensive approach: reputational audit, court decision analysis, corporate intelligence, fraud scheme identification. At COREDO, we integrate open data collection (OSINT), media publication analysis, court decisions, and industry platform reviews.

Open sources and due diligence automation

Modern tools for independent due diligence include automated verification systems, counterparty scoring, open data collection (OSINT), and corporate platform integration. COREDO’s experience shows that due diligence automation not only speeds up the process but also enhances verification quality through multi-channel analysis.

Due diligence in the EU and Asia: differences

Due diligence in the EU and Asia have their differences, related to legislative specifics, information disclosure requirements, and established business practices. Understanding the specifics of each jurisdiction helps avoid risks and build transparent, effective business processes when entering new markets or making deals.

Due diligence for business in the EU: instruction

• Define verification goals and gather a team.
• Request corporate documents: charter, register excerpt, information about directors and shareholders.
• Conduct corporate structure analysis, identify ultimate beneficiaries.
• Assess financial statements, debt obligations, tax risks.
• Check for AML/CTF compliance, sanction lists, and PEP.
• Conduct a reputational audit using open sources and court decisions.
• Document the results and integrate them into internal control.

Due diligence in Asia and Africa

The COREDO team encountered situations where verifying a counterparty in Asia required requesting documents from multiple state registries, using local services, and considering the national legislation specifics.

Counterparty verification according to international standards

Verification for compliance with international compliance standards (KYC, AML, CTF) is an integral part of due diligence for companies operating in the EU, UK, Singapore, and Dubai. COREDO practice confirms: integrating international standards into corporate policies and automating due diligence not only ensures regulatory compliance but also reduces operational and reputational risks.

Tools for independent due diligence

Tools for independent due diligence allow a quick and objective assessment of future partners or counterparties’ reliability without involving external consultants. Thanks to modern services, key checks can be performed independently, providing vital information for decision-making at an early stage of partnership.

Services for counterparty verification

There are dozens of tools available on the market for independent legal entity verification: from international databases (World-Check, Dow Jones Risk & Compliance, LexisNexis) to specialized platforms for corporate structure analysis and financial reporting. At COREDO, we use a hybrid approach, combining automated verification systems with manual OSINT collection and corporate intelligence.

Due diligence automation: speed and quality

Due diligence automation allows scaling the process with an increasing number of counterparties, reducing the human factor, and speeding up decision-making. Implementing counterparty scoring, integrating with internal systems, and using efficiency metrics (verification speed, identified risk level, ROI) become best practices for due diligence in international business.

Risk assessment and management in the project

Risk assessment and management in the project require thorough work with any potential threat sources, among which interaction with counterparties stands as paramount. Mistakes at this stage can lead to financial losses and timeline disruptions, making counterparty analysis and verification fundamental tools for effective project risk management.

Typical mistakes in counterparty verification

• Formal approach to analyzing corporate documents and ownership chain.
• Ignoring checks for affiliation and ultimate beneficial owner.
• Insufficient attention to debt obligation and financial statement analysis.
• Lack of regular AML/CTF and sanction list compliance checks.
• Underestimation of reputational risks and court decisions.

Due diligence mistakes: examples and consequences

Due diligence in international business: recommendations

Due diligence in international business: is an essential tool that helps uncover hidden risks, ensure transaction transparency, and protect company interests when operating in new markets. This material examines key recommendations for conducting due diligence, starting with transaction and partner selection check specifics.

Due diligence in procurement and partnership

• Integrate due diligence into every stage of procurement and partner selection processes.
• Appoint a compliance officer responsible for internal control and counterparty audits.
• Implement automated verification systems and counterparty scoring.
• Regularly update internal company policies considering changes in international compliance standards.

Due diligence effectiveness metrics and ROI

Evaluating the effectiveness of due diligence includes analyzing the following metrics:

• Time to verify one counterparty.
• Number of identified risks and prevented incidents.
• ROI (return on investment) from due diligence implementation: savings on legal expenses, fines, reputational losses.
• Level of automation and process scalability.

Tips for entrepreneurs

Independent due diligence checklist:

• Define verification goals and appoint a responsible person.
• Request and analyze corporate documents.
• Check the ownership chain and identify the ultimate beneficial owner.
• Analyze financial statements and debt obligations.
• Check for AML/CTF compliance, sanction lists, and PEP.
• Conduct a reputational audit through OSINT and court decision analysis.
• Document the results and integrate them into business processes.

Risk minimization tips:

• Use several independent sources for verification.
• Implement due diligence automation for scalability.
• Regularly update internal policies and train the team.
• Don’t limit to formal checks – analyze corporate connections, court decisions, and reputational risks.

Recommendations for selecting tools and automation:

• Choose services integrated with international databases and supporting counterparty scoring.
• Invest in due diligence automation to speed up processes and improve verification quality.

Major mistakes and how to avoid them:

• Don’t rely solely on formal document collection.
• Don’t ignore corporate structure and affiliation analysis.
• Don’t neglect regular AML/CTF and sanction compliance checks.

In 2023, international regulators imposed fines on financial and non-financial companies for AML violations totaling over $6.6 billion. In the EU and Asia alone, the number of money laundering investigations increased by nearly 30% over the year, and compliance requirements have been tightened in all key jurisdictions. More than 60% of identified violations are related to insufficient automation of AML processes and errors in compliance audits.

These questions confront executives, CFOs, and owners of international companies daily. In this article, I will explain in detail how outsourcing AML audit helps not only to reduce the risk of fines but also to build a sustainable compliance management strategy using the experience of COREDO in the EU, Asia, and Africa. Read the article to the end: you will receive a step-by-step guide, practical cases, and tools that really work.

AML Audit and Outsourcing for Business

AML Audit and Compliance Audit

Fighting money laundering is not only an obligation to regulators but also a strategic tool to prevent financial crimes, increase partner trust, and prove compliance for banks and investors.

Internal or External AML Audit – What to Choose?

Internal AML audit relies on the company’s own resources but is often limited by the level of expertise and access to international practices. Outsourcing AML audit involves hiring independent experts to conduct an external review of AML, analyze AML/CFT policies, and assess the effectiveness of KYC and AML in the business.

AML Violations Fines in the EU, Asia, and Africa

Fines and Sanctions for AML Violations

Regulatory requirements in the EU, Asia, and Africa for AML are becoming increasingly stringent. Violations of FATF, FinCEN, CFTC, DFS standards lead to severe sanctions: multimillion-dollar fines, account freezes, license revocations, bans on working with international banks. In some cases, companies lose market access due to insufficient reporting of suspicious activities (SAR) or ineffective transaction monitoring.

Fines for Ineffective AML Audit

In 2022, a European fintech startup that turned to COREDO received a regulatory notice amounting to 1.2 million euros due to errors in outsourcing AML implementation: the contractor failed to take into account the specificity of offshore accounts and did not detect complex money laundering schemes through digital currencies. Only after conducting an independent AML audit and revising compliance processes was it possible to restore banks’ trust and avoid new sanctions.

Outsourcing AML Audit: Benefits

Outsourcing AML Audit: How to Reduce Risks

The solution developed at COREDO for international clients is based on independent external AML review, deep risk analytics, and KYC and AML automation for businesses. This approach not only prevents AML fines but also establishes a system for preventing financial crimes, which is crucial for companies with offshore structures and digital assets.

Implementing outsourced AML provides proof of compliance for banks and investors, enhances partner trust, and reduces the likelihood of account freezes or license suspensions. AML risk management becomes transparent and predictable, granting businesses a competitive edge in the international market.

Cost of Outsourcing AML Audit

The cost of outsourcing AML audit varies depending on business scale, transaction complexity, and audit volume. However, COREDO’s practice shows: cost optimization in compliance is achieved by reducing hidden expenses (training, IT infrastructure support, regulatory updates), while AML audit ROI is expressed in reducing fines likelihood, speeding up client verification (KYC), and increasing investment attractiveness.

Thus, outsourcing allows businesses not only to optimize costs but also to flexibly adapt AML processes to the specifics and scale of activity.

Flexibility of AML Solutions with Outsourcing

Scalability of AML solutions is a key factor for fast-growing companies. COREDO’s experience showed that outsourced AML implementation allows flexible adaptation of processes to new markets, integration of AML with corporate governance, and maintenance of compliance with EU, Asia, and Africa requirements without increasing internal costs.

Automation of AML Processes in Outsourcing

Automation of KYC and AML: Tools for 2025

The automation of AML processes and KYC is becoming standard for international companies. The use of artificial intelligence in AML, digital customer identification, and compliance process automation allows reducing compliance costs and increasing the accuracy of detecting suspicious activities.

We will further explore how to effectively integrate AML services into business processes and the advantages this brings to companies.

Integration of AML Services in Business

Special attention is given to integrating AML audit with corporate governance, which allows not only identifying and eliminating risks but also forming a compliance culture at all organizational levels.

Choosing an AML Audit Provider: Criteria and Mistakes

How to Choose a Contractor: Experience and Technologies

Selecting an AML audit provider is a strategic decision. Key criteria include experience in international jurisdictions, proficiency in AML process automation technologies, compliance with FATF standards, the presence of due diligence cases for suppliers and partners, and employee training and awareness programs.

Mistakes in Outsourcing AML Audit

Common mistakes include insufficient preparation for external AML audit, weak information exchange between companies and auditors, and lack of AML outsourcing staff training. COREDO’s experience shows that successful implementation requires not only technical integration of services but also forming an internal compliance culture.

To enhance preparation effectiveness, let’s explore key steps that will help successfully pass an AML audit and correctly act afterwards.

AML Audit: How to Prepare and What to Do Next

AML audit is not only a formal check but also an opportunity to objectively assess the company’s readiness to meet legal requirements. To successfully pass an AML audit and minimize risks after its completion, it is crucial to prepare staff and business processes in advance and establish consistent actions at all control stages.

How to Prepare Staff and Business Processes?

Quality preparation for an external AML audit begins with training and raising employee awareness. COREDO’s solution includes the development of individual training programs, modeling AML incidents, and implementing AML incident management systems.

Integrating Audit into Risk Management Strategy

Integrating AML audit results into the compliance system is the key to sustainable development. COREDO’s practice confirms: regular updates of AML/CFT policies, transaction monitoring automation, and AML integration with corporate governance not only reduce AML risks but also enhance trust from partners, banks, and investors.

Key Takeaways on the Topic

For maximum ROI from AML audit, it is important to:

• Choose a provider with international experience and technological expertise.
• Integrate AML services into business processes and corporate governance.
• Regularly conduct employee training and update AML/CFT policies.
• Use efficiency metrics and analyze hidden compliance costs.
• Implement KYC and AML automation to reduce costs and increase transparency.

Questions on External AML Audit for Business

1. What strategic advantages does outsourcing AML audit provide for international companies?
   Outsourcing AML audit ensures independent risk assessment, access to international practices, scalability flexibility, and reduced compliance costs.
2. How to assess the return on investment (ROI) from implementing an external AML audit?
   ROI of AML audit is calculated based on prevented fines, accelerated KYC, increased banks’ and investors’ trust, and optimization of internal compliance expenses.
3. What risks exist when outsourcing AML audit and how to minimize them?
   Key risks include choosing an unsuitable contractor, insufficient service integration, and lack of employee training. Minimizing them involves thorough provider due diligence and regular independent AML audits.
4. How does the automation of KYC and AML processes affect compliance department efficiency?
   Automation reduces costs, speeds up data processing, increases the accuracy of suspicious activity detection, and facilitates suspicious activity reporting (SAR).
5. What requirements do EU and Asian regulators have for external AML audit?
   Regulators require regular independent AML audits, transaction monitoring automation, transparent reporting, and integration of AML services into business processes.
6. How to prepare employees for interaction with external AML auditors?
   It is recommended to provide specialized training, model AML incidents, implement incident management systems, and maintain information exchange between companies and auditors.
7. What technologies are used for automation of AML processes in outsourcing?
   Solutions based on artificial intelligence, digital customer identification, compliance process automation, and transaction monitoring are used, integrated with corporate governance.
8. How often should an independent AML audit be conducted to meet international standards?
   It is recommended to conduct an independent AML audit at least once a year and when entering new markets or changing the business model.
9. How to integrate the results of an external AML audit into corporate risk management strategy?
   Use audit results to adjust AML/CFT policies, update KYC and AML procedures, optimize business processes, and form a unified risk management strategy.
10. How to avoid typical mistakes when implementing outsourced AML audit?
    Conduct thorough due diligence of the contractor, ensure employee training, integrate AML services into business processes, and maintain constant information exchange with auditors.

Let me ask a direct question: are you ready for the new AML Canada standards and transparency requirements that are coming into force this year? If not, this article will help you not only understand the details but also gain a strategic advantage. I’ll explain how the COREDO team implements projects for MSB registration, obtaining a FINTRAC license, implementing KYC/AML procedures, and providing comprehensive legal support to ensure you can confidently build international financial services based out of the Canadian jurisdiction. Read the article to the end – here you will find not only answers but practical tools for real growth.

MSB License in Canada: What It Is and Who Needs It

Types of Activities under the MSB License

• Money transfers (including cross-border payments)
• Currency and cryptocurrency exchange (crypto-license Canada)
• Issuance and servicing of payment instruments
• Operations with prepaid cards
• Management of MSB branches and agents to expand geography

Who Is Required to Obtain an MSB License

MSB Registration in Canada – FINTRAC Requirements

Documents Required for an MSB License: Requirements

• Founding documents and personal data of the management
• Detailed organizational structure of the MSB
• Business plan for the license with financial forecasts
• AML/CTF policy and description of KYC procedures
• Confirmation of a virtual office or physical address
• References confirming the reliability of owners and directors (due diligence)

Virtual Office or Physical Address – What to Choose?

Verification of Owners and Directors, Due Diligence

AML Policy for MSB in Canada

KYC: Automation and Procedure Implementation

Responsibilities and Requirements for an AML Officer

MSB Reporting to FINTRAC: Fines and Sanctions

Cost of an MSB License in Canada

Direct and Indirect Expenses for the License

• Government fees for registering a legal entity under MSB
• Payment for document preparation services for the MSB license
• Cost of virtual office rental and bank account opening for MSB

Financial Risks and ROI Calculation

MSB in Canada: Branches, Agents, Fintech

Managing Branches and Agents – Risks and Requirements

Cross-border Payments and AML Standards

Innovation and Automation for MSB

Legal Support for MSB: Risks and FINTRAC Audit

Corporate Governance and Internal Control

Errors Leading to Sanctions in SEO

Practical Recommendations for Entrepreneurs

Launching and Managing MSB in Canada

Tips for Choosing a Partner:

• Evaluate the team’s experience in MSB registration and obtaining a FINTRAC license
• Check for expertise in international AML standards and compliance
• Ensure the presence of comprehensive solutions for automation and support

Recommendations for Cost Reduction:

• Use a virtual office for MSB if acceptable by the bank
• Implement KYC/AML automation to reduce personnel costs
• Regularly update business processes in accordance with new FINTRAC requirements

MiCA Requirements for Crypto Business in the EU

Registering a Crypto Business in Panama

MiCA or Panama – What Should Crypto Businesses Choose?

MiCA or Panama – what should crypto businesses choose?
This question is especially pressing today for companies needing to choose between the strict but transparent rules of the European Union and more flexible offshore regulations. Understanding the differences in licensing requirements will help make an informed decision on the most suitable jurisdiction for launching or relocating a crypto project.

Company Licensing Requirements

AML/KYC: What It Is and Why It’s Needed

Access to Investments Through Banks

Regulatory Costs and Timelines – What You Need to Know?

Risks of MiCA and Panama: Legal and Financial

Risks of MiCA and Panama are not just legal nuances, but also substantial financial challenges for crypto companies and startups. New regulatory requirements affect business stability, operational transparency, and client protection, and non-compliance with these norms can lead to severe consequences for companies of all scales.

Consequences of Non-Compliance with MiCA for Business

Risks of Operating in Panama

Scaling Crypto Services: How to Enter the Market

Scaling Crypto Services requires a well-thought-out strategy and an understanding of the peculiarities of each jurisdiction to successfully enter the international market. Below we will consider key aspects of scaling a crypto project using the example of Panama and explore what is important to consider when choosing a country to launch crypto products.

How to Scale a Crypto Project in Panama

Entering the European Market Through Panama

Recommendations for Entrepreneurs

How to Reduce Regulatory and Financial Risks

• Implement multi-level AML procedures and KYC processes that meet international FATF standards.
• Set up a risk management system and blockchain compliance to monitor transactions and prevent income legalization.
• Organize corporate governance with clear distribution of responsibilities and transparent financial reporting.
• Utilize legal support for crypto companies to timely update procedures and comply with new requirements.

Panama or MiCA for Crypto Business: What to Choose?

• Evaluate the ROI when choosing a jurisdiction: compare launch costs, registration timelines, share capital requirements, and potential scaling constraints.
• Consider the long-term consequences of choosing Panama over MiCA: access to banking infrastructure, the ability to attract institutional investors, compliance with international standards.
• The economic efficiency of the jurisdiction should be combined with the transparency of business processes and the ability to legalize income.

Common SEO Mistakes and How to Avoid Them

• Underestimating the complexity of implementing AML/KYC procedures and blockchain compliance.
• Ignoring corporate governance and financial reporting requirements.
• Lack of a European market entry strategy when registering in Panama.
• Using outdated administration models without considering new standards.

Panama or MiCA: What to Choose?

Panama or MiCA – What to Choose for Crypto Business

Consequences of Choosing Panama Instead of MiCA

The implementation of MiCA regulation in Poland has become not just another stage of tightening control, but a real paradigm shift for the market. Previously, the registration of crypto business in Europe, and in particular in Poland, was based on national standards, where the role of the KNF (Financial Supervision Commission) was key, but the framework was relatively flexible. Now, the EU CASP license has become a universal “pass” for cross-border crypto services, and the AML/KYC and compliance requirements are unified for the entire European market.

Thus, the transition to regulation according to MiCA standards inevitably entails a revision of approaches to licensing crypto business in Poland, which is detailed in the new requirements for market participants.

Licensing of Crypto Business in Poland: Changes

Before the implementation of MiCA, the process of obtaining a crypto license in Poland was relatively quick, with minimal capital requirements, a standard procedure for checking beneficiaries, and basic internal control. Intra-group compliance procedures were often limited to formal policies, and integration with the EU anti-money laundering directive remained at the company’s discretion.

With the implementation of MiCA, the situation changes significantly:

• The capital requirements for CASP start at €50,000, and only own funds are considered.
• The implementation of the MiCA transition period Poland implies mandatory integration of new standards into national law, requiring a review of all documentation and business processes.
• Compliance becomes an integral part of operational activity: internal audit, enhanced KYC, regular reporting on suspicious transactions, and mandatory sanctions list checks.

COREDO’s experience shows: companies that started restructuring their AML/KYC procedures in advance and integrated risk assessment of crypto assets went through Licensing faster and with fewer costs.

EU CASP License for Business

MiCA Requirements for Crypto Companies in Poland

MiCA sets standards that affect all key aspects of crypto companies’ activities: from AML/KYC to IT infrastructure and internal control requirements. The KNF Poland financial supervision now operates in close cooperation with European regulators, and bank accounts for crypto businesses in Poland are opened only with full compliance with the new standards.

As a result, crypto companies in Poland require constant procedure updates, making the implementation of new AML/KYC standards a key step towards full compliance with MiCA.

AML/KYC: New Standards and Practice

The impact of MiCA on AML procedures cannot be overestimated: now crypto companies are required to implement not only standard KYC procedures but also advanced transaction control mechanisms, automatic reporting on suspicious operations, and regular compliance checks against sanctions lists.

COREDO’s practice confirms: automating the assessment of crypto asset risks and implementing comprehensive AML/KYC policies can significantly reduce the likelihood of refusal during licensing and minimize the risks of fines.

MiCA Financial and Technical Requirements

Personnel and Internal Audit: Management Structure

MiCA requires that key managers and beneficiaries undergo fit and proper checks, verifying compliance with professional and reputational standards. Internal auditing in crypto companies becomes a mandatory element: regular process checks, reputation risk management, and implementation of internal control policies.

COREDO’s experience showed: companies that invested in staff training and the development of internal control systems were not only faster at getting licensed but also reduced the likelihood of future regulatory claims.

Crypto License in Poland: New Rules

Application Submission Stages

The MiCA transition period in Poland provides a “window” for submitting applications: companies already operating in the market must submit a complete package of documents within 18 months of MiCA’s entry into force. New players must go through preliminary notification and get KNF approval before starting operations.

In practice, COREDO recommends preparing documents in advance: preliminary expert assessment, business process audit, and compliance due diligence significantly reduce application review time.

Documents for Application Submission

The standard package of documents includes:

• Business plan with financial forecasts and AML/KYC strategy.
• Confirmation of capital sources (only own funds, minimum €50,000 for CASP).
• Internal control policies, criminal record certificates, confirmation of key employees’ qualifications.
• Description of IT infrastructure, cybersecurity, and data protection measures.

Challenges for Crypto Companies in Poland Post-MiCA

Typical Mistakes and How to Avoid Them

Recommendation: conduct regular internal audits, implement due diligence at all stages, and use automated transaction control systems.

Risks for Management and Their Responsibility

Licensing and Scaling Crypto Business in the EU

Preparation for CASP License in the EU

Effective preparation includes:

• Development and implementation of compliance documentation in line with EU standards.
• Training personnel on new requirements and ongoing professional development.
• Implementing IT solutions to automate transaction monitoring and reporting.

How to Increase Transparency and Customer Trust

Financial transparency and internal auditing of crypto companies are key to gaining trust from clients and partners. Implementation of transaction control mechanisms, regular reporting, and reputation management are mandatory elements of a modern business model.

AI and Cybersecurity for MiCA

Implementing the AI Act and DORA requires integrating cybersecurity solutions: data protection, digital resilience, regular IT system testing.

Key Advice for Entrepreneurs

Checklist for Preparing for Licensing:

• Conduct an audit of current AML/KYC procedures.
• Prepare and approve a business plan considering MiCA.
• Ensure IT infrastructure compliance with DORA and AI Act requirements.
• Verify the qualification and reputation of key employees.
• Implement internal audit and regular reporting.
• Prepare a document package for submission to KNF.

Actionable advice:

• Choose jurisdiction considering strategic goals and European passporting possibilities.
• Optimize business processes for new MiCA standards.
• Invest in staff training and compliance automation.
• Use COREDO’s experience to minimize risks and speed up the licensing process.

To gain maximum benefits from the implementation of new MiCA rules, familiarize yourself in advance with typical questions and features of obtaining a crypto license in Poland.

MiCA and Crypto License in Poland, FAQ

How to get a crypto license in Poland after MiCA’s implementation?

What requirements does MiCA impose on crypto companies in 2025?

How does MiCA affect AML/KYC processes for crypto business in Poland?

How to prepare a company for CASP licensing in the EU?

How to open a bank account for a crypto company in Poland?

MiCA and Entering the European Market for Crypto Business