AML trends for 2025: Navigating tighter regulations and emerging risks

AML trends for 2025

Staying ahead of financial crime

Financial crime is growing in complexity, with estimates from the National Crime Agency now placing the value of money laundered each year to be equivalent to 2-5% of global GDP. With new technologies easier to infiltrate during their infancy, fraudsters are finding loopholes and becoming more advanced in their attack.

With crimes like money laundering still at large, it’s no wonder we’re seeing the FCA crack down on businesses for being non-compliant with AML regulations, while also implementing more stringent measures. And for UK businesses, this means they must adapt to an increasingly complex regulatory landscape. But, how?

Here, we’ll be sharing four of the top AML trends we predict to see this year to help you strengthen your compliance strategy in 2025 and looking ahead to what’s next for the compliance landscape.

Tighter UK regulations and increased scrutiny

AML regulations in the UK continue to evolve, with a stronger emphasis on transparency and enforcement. The Economic Crime and Corporate Transparency Act, which came into force in 2023, has set the stage for stricter oversight. One of its major provisions is the new requirement for companies to verify beneficial ownership, making it harder for criminals to use anonymous shell companies for illicit financial activities.

In 2025, firms should expect the FCA to intensify its focus on AML compliance, with increased regulatory audits and enforcement actions. Non-compliance could lead to substantial fines, reputational damage, and even criminal liability for senior management under the Senior Managers and Certification Regime (SM&CR). To stay compliant, businesses must ensure that their AML processes, including customer due diligence (CDD) and enhanced due diligence (EDD), meet the latest regulatory standards. And that they not only have their AML policy documents in shape, but that they’re also referring back to them and refining them continuously.

1.      The role of AI and real-time monitoring

Financial criminals are adapting faster than ever, using advanced techniques such as synthetic identity fraud and AI-driven money laundering schemes. In response, UK businesses must shift from traditional rule-based monitoring to more sophisticated real-time transaction monitoring. By leveraging AI and Machine Learning, firms can detect unusual patterns and flag suspicious activities more accurately, reducing false positives and improving efficiency.

While checking a customer or partnering business is compliant at the point of onboarding is crucial, it’s just as important to continue to monitor this over time. With real-time monitoring, you can get instant updates on changes of risk status, enabling you to act quickly and take action against potentially suspicious activity.

Crypto, digital assets, and regulatory expansion

The UK’s regulatory stance on cryptocurrencies and digital assets is becoming clearer, with the Financial Services and Markets Act 2023 granting the FCA greater authority over crypto firms. In 2025, crypto exchanges and wallet providers will face stricter AML obligations, including mandatory KYC checks and transaction monitoring.

This regulatory shift means that traditional financial institutions must also strengthen their AML controls for crypto-related transactions. Banks and payment providers dealing with digital assets will need to implement robust screening mechanisms to identify and mitigate risks associated with illicit crypto activities.

2.    Expanding AML responsibilities beyond financial services

AML obligations are no longer confined to banks and financial institutions. The UK government has been expanding AML regulations to cover sectors such as property, law, accountancy, and high-value goods transactions. Estate agents, conveyancers, and legal professionals must now conduct stringent customer due diligence (CDD) checks, ensuring that property purchases are not being used to launder illicit funds.

With enforcement measures tightening, businesses across multiple sectors will need to strengthen their AML processes to avoid penalties. Veriphy’s cost-effective AML and identity verification tools are widely used across regulated industries, helping firms conduct secure, compliant checks in seconds.

3.    Corporate transparency and ESG in AML compliance

Corporate transparency is becoming a key focus in AML compliance, particularly in light of the UK’s new beneficial ownership rules. Organisations will need to ensure they have accurate, up-to-date records of ownership structures, with the FCA and Companies House increasing their scrutiny of businesses that fail to provide clear ownership information.

In addition to regulatory demands, AML compliance is increasingly being linked to Environmental, Social, and Governance (ESG) considerations. Firms are expected to assess financial crime risks tied to human trafficking, corruption, and environmental crimes. This shift highlights the growing expectation that AML efforts should not only comply with regulations but also support ethical and sustainable business practices.

Preparing for the future

As AML regulations tighten and criminals develop more sophisticated methods, businesses must embrace technology-driven solutions while ensuring compliance with UK and global regulatory frameworks. The cost of non-compliance is higher than ever, making proactive AML strategies essential for any organisation operating in a regulated sector.

At Veriphy, we provide real-time AML checks, PEPs and sanctions screening, and identity verification to help businesses comply with these evolving regulations efficiently. Our platform ensures that companies meet their obligations under the Money Laundering Regulations 2017, while minimising disruption to their operations. We even offer online AML training, sanctions training and advanced KYC training to help get your entire workforce up to speed.

Want to learn more about how Veriphy can support your AML compliance strategy? Get in touch today.