May continues the spring momentum, shaping a period of active changes, new projects, and regulatory updates. Below are the key developments setting the pace for the month and influencing 2026 trends.

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1. Canada strengthens AML oversight: sharp increase in penalties and new compliance requirements

Canada has adopted Bill C-12, significantly reinforcing its anti-money laundering (AML) regime and expanding the powers of FINTRAC. The new rules introduce higher penalties and a stricter approach to compliance assessment.

Key changes:

• penalties increase to CAD 40,000 (minor violations), CAD 4 million (serious), and up to CAD 20 million or 3% of global revenue (most severe)

• “serious” violations now explicitly include weak or purely formal AML programs

• compliance must be risk-based, effective, and demonstrable

The list of violations has also been expanded:

• inadequate or missing internal AML policies

• poor risk assessment and lack of system effectiveness testing

Additionally, customer identification requirements have been tightened, and opening accounts without proper verification or using outdated data is now prohibited.

Mandatory FINTRAC registration is being introduced for all regulated entities, with future measures including restrictions on large cash transactions and expanded cross-sector data sharing.

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2. Hong Kong expands its tax treaty network (CDTA)

Hong Kong continues to actively expand its tax treaty network aimed at reducing barriers to international trade and investment. The jurisdiction currently has 57 double taxation agreements in force.

CDTAs play a key role in international taxation:

• allocate taxing rights between jurisdictions

• reduce or eliminate withholding tax

• provide dispute resolution mechanisms (MAP)

• enhance tax certainty for businesses

The network already has strong coverage: 15 of Hong Kong’s top 20 trading partners are included, accounting for over 75% of its external trade.

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3. The UK tightens AML regulation for trusts

The UK has published draft amendments to the Money Laundering Regulations 2017, aimed at closing regulatory gaps, improving proportionality, and adapting to modern AML and counter-terrorist financing risks.

Trusts that acquired UK real estate interests before 6 October 2020 and still hold such assets will now be subject to mandatory registration. This extends oversight to “legacy” structures that previously remained outside the regulatory scope.

Other changes:

• expansion of trusts required to register in the Trust Registration Service

• new exemptions for low-risk trusts with minimal assets

New requirements for financial institutions: for clients with pooled accounts, institutions must:

• determine the purpose of use

• document AML risks

• ensure ongoing monitoring

Updated criteria for low-risk trusts exempt from registration:

• no UK real estate

• assets ≤ GBP 2,000

• income ≤ GBP 5,000 per year

• no similar trusts established by the same settlor

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4. Poland updates SAF-T rules: less bureaucracy, more time

Poland is moving toward simplifying tax reporting. On April 8, the Council of Ministers approved a draft law amending the submission process for SAF-T (Standard Audit File for Tax).

The reform aims to reduce administrative burden and improve electronic reporting processes.

Key updates:

• new deadline: SAF-T must be submitted by the end of the 7th month after the end of the tax year (on a permanent basis)

• extended deadlines also apply to reporting on fixed assets and intangible assets

• authorized representatives with a valid tax reporting power of attorney may sign SAF-T without a separate authorization

• the rule also applies to powers of attorney issued previously

The main changes are expected to take effect from July 1, 2026.

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5. The U.S. returns duties to businesses: compensation process launched

The United States has launched a mechanism for refunding customs duties paid by companies over several years without proper legal grounds.

These relate to tariffs introduced under U.S. trade policy, some of which were imposed using the IEEPA (International Emergency Economic Powers Act), which has become a key legal issue.

If a payment was collected unlawfully, a right to reimbursement arises. The total amount of potential compensation is estimated at up to $166 billion.

As of April 20, 2026, U.S. Customs and Border Protection has opened an online portal for submitting claims. To obtain refunds, companies must:

• submit an application through the system

• confirm import transactions and duty payments

• prove eligibility for reimbursement

Review timelines: 60–90 days after claim acceptance.

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