TL;DR: AML compliance is no longer just for banks. Crypto exchanges, fintechs, marketplaces, and even estate agents are now "obliged entities" with legally binding AML programme requirements.
What is AML compliance?
Anti-Money Laundering (AML) compliance refers to the policies, procedures, and controls a business must put in place to prevent, detect, and report money laundering and terrorist financing. It is mandated by law for a growing list of business types — and the penalties for non-compliance are severe.
In 2024-2026, regulators globally have dramatically expanded the scope of who must comply. The EU's 6th AML Directive and FATF's Recommendation 15 have brought crypto service providers, DeFi protocols, and large online platforms into the obliged entity framework.
The five pillars of an AML programme
Written AML Policies & Procedures
A documented programme covering risk assessment methodology, customer acceptance criteria, and escalation procedures. Must be approved by senior management and reviewed annually.
Customer Due Diligence (CDD)
Verifying customer identity before or during onboarding. Standard CDD for most customers, Enhanced Due Diligence (EDD) for high-risk profiles (PEPs, high-risk countries, complex ownership).
Ongoing Transaction Monitoring
Continuously screening transactions for suspicious patterns: structuring, unusual velocity, geographic anomalies, and links to sanctioned parties.
Suspicious Activity Reporting (SAR)
When suspicious activity is detected, obliged entities must file a SAR with the financial intelligence unit (FIU) — e.g., NCA in the UK, FinCEN in the US. Tipping off the subject is prohibited.
Staff Training
All relevant staff must receive AML training at hire and annually thereafter. Training must cover red flags, reporting obligations, and penalties for non-compliance.
Key AML regulations in 2026
| Regulation | Region | Scope |
|---|---|---|
| 6th AML Directive (6AMLD) | EU | All EU obliged entities; expands predicate offences |
| EU AML Package (2025) | EU | Single rulebook; new EU AML Authority (AMLA) |
| UK MLR 2017 (amended) | UK | FCA/HMRC-supervised firms; crypto assets added |
| FATF Rec. 15 | Global | VASPs (crypto service providers) globally |
| EU MiCA | EU | Crypto-asset service providers from June 2024 |
| FinCEN AML Rules | US | BSA-covered financial institutions + crypto |
What happens if you don't comply?
AML enforcement has intensified globally. In 2025 alone, European financial regulators issued €2.3 billion in AML-related fines. Key consequences:
How technology simplifies AML compliance
Modern RegTech platforms automate most of the manual work that used to require dedicated compliance teams:
Automated KYC onboarding replaces manual document review — reducing cost per verification from ~€30 to under €1.
Real-time PEP & sanctions screening against OFAC, EU, UN, and HMT lists — updated daily.
Continuous monitoring re-screens your entire customer base automatically, not just at onboarding.
Case-documentation tools guide analysts through structured templates to support internal compliance review and SAR drafting.
Automated compliance reports for your MLRO and regulators, generated monthly or on-demand.
Start your AML programme today
TrustVerifyID provides KYC, AML screening, transaction monitoring, and case-documentation workflow in one platform. Start free.