For 2025, several major AML/CFT reforms are anticipated globally, each addressing the evolving challenges and requirements of financial regulation and compliance.
United States: The U.S. Financial Crimes Enforcement Network (FinCEN) has proposed significant changes to strengthen AML/CFT programs across financial institutions. This proposed rule aims to ensure these programs are effective, risk-based, and well-designed to align with institutions’ specific risk profiles. This includes mandating a comprehensive risk assessment process, adjusting programs to counteract high-risk and low-risk customers and activities effectively, and maintaining a strong focus on national security threats like terrorism financing and major financial crimes​.
European Union: The EU has finalized an extensive AML/CFT reform package, which includes the establishment of the EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), set to be operational by mid-2025. The reforms introduce a new Regulation on the prevention of the financial system’s use for money laundering or terrorist financing, updated regulations covering transfers of funds, and a new directive regulating access to centralized bank account registries. These regulations are designed to enhance transparency, particularly for beneficial ownership, and tighten due diligence requirements across the board​.
Global Initiatives by FATF: The Financial Action Task Force (FATF) continues to play a crucial role in setting international AML/CFT standards. Under new leadership, FATF emphasizes inclusiveness, diversity, and transparency in its governance. It remains focused on identifying high-risk jurisdictions and ensuring global cooperation to combat money laundering and terrorist financing more effectively​. These reforms represent a significant shift towards more robust and risk-sensitive regulatory frameworks intended to improve global financial security and compliance.
These developments highlight a global trend towards strengthening financial systems against illicit activities, ensuring that AML/CFT regulations remain effective in a rapidly changing economic landscape. These updates would be much crucial as they respond to the evolving landscape of financial crimes, emphasizing a more targeted and adaptive approach to compliance across high-risk areas, industries and jurisdictions in as much as focusing on risk assessment and enhancing transparency.
