• White Paper
Navigating
the Maze of
Financial Services
Compliance
Requirements
Shifting AML and
KYC Regulations Call
for Agile Verification
Technology
Increases in financial crime and
the rise of digital banking and
fintech services have created
ideal conditions for expanded
Anti-Money Laundering (AML)
and Know Your Customer (KYC)
requirements.
Introduction
With countries around the world adjusting their
financial crime laws, there’s a lot of pressure on global
enterprises to keep up. Compliance can be expensive,
but noncompliance costs can expand beyond fines to
include reputational damage and lost trust.
Organizations that conduct digital identity verification
to meet AML and KYC requirements rely on agile
technology that adapts to regulatory shifts without
losing operational momentum.
Regulatory Spotlight:
AMLA
The new European Anti-Money Laundering
Authority (AMLA) aims to combat financial
crime and counter the financing of terrorism
in the EU
The regulatory body was expected to
start operating in 2025 and become fully
functional by 2028
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Why Tech Adoption
and Crime Are Keeping
Regulators on High Alert
The U.S. Federal Trade Commission
received more than 1.1 million reports
of identity theft in 2024.
Financial app installs are
increasing as more consumers
embrace digital options.
1.1M
Regulatory Spotlight:
DAC7
The European Union’s 7th Directive on
Administrative Cooperation includes a
requirement that digital platforms report
information to tax authorities about the
sellers using their platforms
The rule affects all digital platforms, whether
based in the EU or elsewhere, that facilitate
economic activity in the region, unless the
platform is outside the EU and has reporting
obligations equivalent to DAC7
But the rise in adoption correlates with increased
fraud attempts to exploit new vulnerabilities
in infrastructure and take advantage of less
experienced digital financial services users.
Fraud incidences and costs have grown significantly.
The U.S. Federal Trade Commission (FTC) reported
a 25% increase in fraud losses from 2023 to 2024.
The FTC also received more than 1.1 million reports of
identity theft in 2024.
As financial criminals become more sophisticated
and introduce new attack vectors, governments will
likely strengthen regulations and oversight wherever
people move money.
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The Evolving
Regulatory
Landscape
A 2025 PwC survey found nearly 90% of
respondents experienced an increase in compliance
responsibilities in the past three years.
Governments are already considering stronger
oversight in nontraditional, less-regulated sectors.
• In 2024, the Australian government introduced the
Anti-Money Laundering and Counter-Terrorism
Financing Amendment Bill to address vulnerabilities
among entities such as lawyers, accountants
and precious stone dealers. The move aims to
align Australia with international standards and
strengthen regulatory frameworks.
• The international Financial Stability Board notes
that nearly all 25 member jurisdictions either have
the relevant frameworks in place or are planning
to develop or revise them for crypto assets and
stablecoins.
Organizations often have to invest heavily to keep
pace with evolving regulatory requirements. A
Celent report estimated that financial institutions
worldwide would spend $34.7 billion on financial
crime compliance technology and $155.3 billion on
operations in 2024.
Multinational companies know
regulatory change is not a
matter of if, but when.
On the flip side, noncompliance carries steep
consequences across financial services. In 2024, total
aggregated bank fines reached $4.5 billion.
But regulatory influence goes beyond the bottom line.
It often reshapes how businesses operate and show
accountability.
The EU’s 7th Directive on Administrative Cooperation
(DAC7) includes the requirement that digital platforms
report seller information to tax authorities. The
EU’s Digital Services Act mandates, among other
requirements, that online marketplaces and social
networks disclose who is selling on their platforms.
The Financial Transactions and Reports Analysis
Centre of Canada continues to fight money laundering
and terrorist financing with expanded requirements
such as those around business and ultimate beneficial
owner verification.
For financial services companies navigating the
tightening regulatory landscape, achieving compliance
isn’t optional; it’s mission critical. In a digital-first
economy, that mission can serve as a strategic
imperative that protects long-term business growth.
Regulatory Spotlight:
Digital Services Act
The EU’s Digital Services Act includes a
mandate that digital services companies
disclose who is selling on their platforms
As of Feb. 17, 2024, the rules apply to all
platforms, including online marketplaces, host
providers and social networks
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Managing a Changing
Regulatory Landscape
The current pace of regulatory change
calls for cutting-edge technology that
allows global companies to quickly
adapt to new requirements.
Addressing IT requirements is essential to an efficient
identity verification program, but not all companies
have those capabilities. In one study, a third of financial
services firms report they have reasonable systems
but need upgrades for regulatory technology and
fintech solutions, while 16% have no confidence in their
IT infrastructure.
New regulations change how companies verify
identity. Maybe it’s new documentation, different
reporting requirements, watchlist screening or greater
assurance based on new liability. Whatever the need,
companies with a global presence face challenges
keeping up with new compliance requirements without
losing time in market.
Intuitive, integrated technology that allows companies
to adjust verification workflows to match the needs
of a new market in real time can overcome those
challenges. If a regulatory body changes compliance
requirements, the right verification platform can
quickly adjust.
A modular verification platform is designed to respond
to new needs. Whatever the regulatory change, a
unified, flexible identity platform can keep financial
services companies compliant anywhere in the world.
Regulatory Spotlight:
FINTRAC
The Financial Transactions and Reports
Analysis Centre of Canada (FINTRAC)
continues to fight money laundering
and terrorist financing with expanded
requirements such as those around business
and ultimate beneficial owner verification
FINTRAC targeted Oct. 1, 2025, to
implement a requirement that companies
report to Corporations Canada any material
discrepancies they notice between their
records and a corporation’s beneficial
ownership registry filings when there is
high risk
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The world’s
identity
platform.
Trulioo is a registered trademark of Trulioo Information Services Inc. in the United States, the European Union,
Canada and other countries.
Trulioo is the world’s identity platform, trusted by leading
companies for their verification needs. The Trulioo integrated,
automated platform provides unparalleled global coverage for
business and person verification and a comprehensive suite of
in-house capabilities.
Combining its state-of-the-art technology with expert verification
knowledge across diverse markets, Trulioo enables the highest
verification assurance levels, optimizing onboarding costs and
fostering trust and security in the global digital economy.
Contact us
The Trulioo global identity platform provides
the agility financial services companies
need to keep pace with evolving AML and
KYC regulations around the world. With one
platform delivering enriched data intelligence,
companies can achieve high match rates,
monitor watchlists worldwide and achieve
regulatory compliance anywhere.
Not all AML, KYC and business verification
challenges are the same. Trulioo helps financial
services companies meet their regulatory needs
and expand across borders with AI-driven
verification workflows, proprietary machine
learning models and deep industry expertise.