Global AML/KYC regulations: The June 2025 Pulse

Global AML/KYC regulations continue to change, and 2025 is proving to be a particularly active year. Across four major jurisdictions, the UK, USA, EU, and Australia, we are seeing a new regulatory tempo: sharper enforcement, tighter controls, and a clear demand for greater transparency.

This is not just regulatory tinkering. It is a coordinated global reset. Here is what is happening, why it matters, and how firms should be responding.

UK: Sanctions enforcement grows teeth

The UK continues to position itself as a global leader in sanctions enforcement. The Public Interest Disclosure (Amendment) Order 2025, effective June 26 2025, strengthens whistleblower protections by enabling disclosures directly to key government departments. It is a smart move. With growing geopolitical tensions, enabling internal reporting helps root out compliance failures before they become front-page scandals.

At the same time, the Register of Overseas Entities (OER) is entering a new phase:

• From July 31, historical changes in beneficial ownership must be disclosed
• From August 31, trust information, including beneficiaries, will be publicly accessible, with limited privacy exceptions

Implication: Firms need to get ahead of their OER filings and ensure that trust-related data is handled with precision. The days of opaque offshore structures are numbered.

USA: Goodbye reputational risk, hello risk-based compliance

In the USA, the focus has shifted squarely to objectivity. The FIRM Act, currently advancing through Congress, seeks to remove “reputational risk” from federal supervisory guidance. While reputational risk has historically served as a catch-all justification for de-risking, it is increasingly seen as arbitrary and inconsistent. The Act reflects a broader push to bring clarity to what qualifies as legitimate financial risk.

Complementing this is FinCEN’s modernization of Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) program rules, emphasizing:

•  Proportional, risk-based controls
• Tailored program effectiveness
• Enhanced alignment with institutional risk profiles

A notable regulatory shift came in March 2025, with FinCEN revising its Beneficial Ownership Information reporting obligations under the Corporate Transparency Act. Now, only foreign entities are required to file; domestic U.S. entities are exempt.

Implication: Financial institutions must rethink onboarding strategies and update their risk models; subjective reasoning is being phased out. It is time to double down on measurable, defendable due diligence.

EU: AMLA launches a new era of centralized oversight

Europe has finally put a regulator at the center of its AML strategy. The Anti-Money Laundering Authority (AMLA), headquartered in Frankfurt, is now operational. Four board members have been appointed, and the authority is preparing to directly supervise 40 high-risk financial institutions.

But the real shift lies in its long-term agenda:

• Harmonize fragmented national frameworks
• Serve as a central hub for all 27 EU Financial Intelligence Units
• Standardize supervision across the bloc

Complementing AMLA’s rollout is the EU AML Regulation (2024/1624), effective July 2027, which lowers the beneficial ownership threshold to 25%, and 15% for high-risk sectors. It also launches BORIS, the EU-wide platform for interconnecting national registers.

Implication: Institutions operating across Europe need to prepare now for enhanced UBO transparency and real-time data exchange. AMLA is not just a symbolic body; it is a supervisory force with real teeth.

Australia: Tranche 2 finally arrives

Australia is closing long-standing compliance gaps with its AML/CTF Amendment Act 2024. After years of delay, the so-called Tranche 2 reforms are now law. As of July 1, 2026, AML obligations will extend to:

• Lawyers
• Accountants
• Real estate agents
• Trust and company service providers
• Dealers in precious metals and stones

What is notable here is not just expansion, it is philosophy. The reforms replace prescriptive program structures with a principles-based model, focusing on governance, senior oversight, and adaptive risk management.

Also noteworthy:

• The term “digital currency” has been replaced with “virtual asset,” bringing crypto-to-crypto transactions under AUSTRAC’s umbrella
• Australia has introduced mandatory BO disclosure for the first time, though access remains restricted to public agencies

Implication: If you are newly included under Tranche 2, now is the time to act. Waiting until 2026 to prepare will be too late. Align your KYC, BO, and governance policies today.

Final thoughts: From reactive to proactive for global AML/KYC regulations

Taken together, these updates reflect a global convergence around transparency, harmonization, and accountability. For financial institutions, the message is clear: static compliance programs will not cut it. Risk functions must be agile, tech-enabled, and responsive to evolving global standards.

Here is the bottom line:

• In the UK, sanctions compliance starts with trust and transparency
• In the US, regulatory credibility hinges on objective, measurable controls
• In the EU, harmonized supervision means no more regulatory arbitrage
• In Australia, the compliance perimeter has widened

The next wave of AML enforcement will not tolerate ambiguity. Institutions that invest in smarter onboarding, real-time BO verification, and integrated risk assessments will not only stay compliant, but they will also stay competitive.