Regulatory Law: Licensing and Compliance

Regulatory Law as Part of Public Law

Regulatory law establishes rules for operations in licensed sectors: finance, healthcare, transport, energy, telecommunications. The objective is the protection of public interests (safety, financial stability, consumer protection).

Financial Regulation

Russia: The Bank of Russia is the mega-regulator (banks, insurance companies, brokers, microfinance organizations, pension funds). Licenses: banking, brokerage, dealing, asset management company. Violation leads to license revocation.

UAE: DFSA (Dubai Financial Services Authority) is the regulator in DIFC. License categories: Authorized Firm (asset management, brokerage, consulting). FSRA is the regulator in ADGM. Strict capital requirements, AML/KYC.

United Kingdom: FCA (Financial Conduct Authority) is the regulator of most financial services.

AML/KYC: Anti-Money Laundering Requirements

AML (Anti-Money Laundering) — obligations to counteract money laundering. KYC (Know Your Customer) — client identity verification. Requirements: client identification, transaction monitoring, reporting of suspicious operations.

Fines for AML violations: BNP Paribas — 8.9 billion USD (2014), Standard Chartered — 1.1 billion USD (2019).

GDPR and Personal Data Protection

General Data Protection Regulation (EU, 2018) extends to any company processing the data of EU residents. Key principles: lawful processing, data minimization, right to erasure, notification of data breaches within 72 hours.

Russian analogue: Personal Data Law (152-FZ). Since 2022 — cross-border data transfer is restricted.

Practical Assignment

A fintech startup creates a mobile application for P2P transfers between Russia and the UAE. Determine: (1) What licenses are required in each country? (2) What are the AML/KYC requirements? (3) How to comply with data protection requirements in both jurisdictions?