AML Regulatory Developments in 2026: Fragmentation or Unification?

Global anti-money laundering (AML) regulations are a paradox in 2026: structured global alignment sits alongside growing jurisdictional divergence. Political priorities and economic strategies in some jurisdictions signal a relaxation of regulation for the first time in decades. Research by Fenergo found that US enforcement activity fell by 51% in 2025, while penalties in Europe skyrocketed year-on-year by 769%. A pull in different directions by individual jurisdictions risks introducing a more fragmented global landscape. 

There are also reasons for optimism. AML legislation is strengthening in some jurisdictions, and advances in technology are enabling deeper understanding of entities, with greater accuracy in the detection of illicit activity than ever before. The core architecture of AML - risk-based controls, beneficial ownership transparency, digital-asset oversight, and technology-enabled monitoring - is converging in many places globally, driven largely by the inter-governmental Financial Action Task Force (FATF). 

The European Union is also driving significant harmonization. Its recent AML package replaced divergent national approaches with its Single Rulebook, which provides a set of unified regulations. The European Anti-Money Laundering Authority’s (AMLA) emergence as a central supervisor will further standardize expectations across the bloc. As a result, firms will need to implement new customer due diligence standards, an expanded scope of obliged entities, and enhanced data and governance requirements. 

The AMLA is also currently consulting on the new Anti-Money Laundering Regulation (Regulation (EU) 2024/1624). For financial institutions that operate in the EU, or maintain a branch or subsidiary in the EU, it is worth tracking these developments closely. Significant changes to Customer Due Diligence (CDD) requirements for all financial institutions are expected to come into effect in 2027. Now is the time to centralize your approach and ensure your organization is fully prepared for these upcoming regulatory changes. 

The United States is moving in a different direction. As 2026 continues, I expect the broader regulatory tone in the US to be more deregulatory. We have already seen the Corporate Transparency Act (CTA) diluted through FinCEN’s interim final rule exempting US-formed companies and US persons from beneficial ownership reporting. This comes alongside delays in bringing Registered Investment Advisers into scope as regulated entities. I expect this direction of travel to continue, widening the gap between the US and more prescriptive regimes such as the EU. 

Across APAC, regulatory evolution is uneven. Markets such as Singapore and Hong Kong continue to enforce high-expectation AML regimes, particularly for digital assets. Australia is progressing Tranche 2 reforms, while other jurisdictions are likely to prioritize financial inclusion and growth, contributing to regional fragmentation. 

Globally, regulators will continue to encourage the use of AI, while tightening expectations around how it is used. They demand explainability, strong model governance, and robust data quality. Digital-asset regulation, especially travel rule implementation and Virtual Asset Service Provider (VASP) supervision, will remain a top priority. 

Geopolitical fragmentation, sanction evasion, supply-chain disruption, and rapid advances in AI are pushing firms to rethink how they detect and manage risk across borders, channels, and products. The regulated sector must continue to modernize compliance practices and technology to improve efficiency and effectiveness in a rapidly evolving threat landscape. Even with regulatory divergence, I do not expect organizations to relax their drive to improve or to maintain high global compliance standards in 2026. 

Despite regulatory divergence, the direction of travel is clear: 2026 will reward firms that embrace effectiveness, collaboration, and innovation - and expose those that continue to rely on legacy approaches. 

To find out more about how AI can help your organization keep pace with new regulatory requirements, explore the capabilities of our Agentic AI agents.