Regulatory Horizon Scanning 2026: Essential Insights for the Year Ahead

2025 was a landmark year in anti-money laundering (AML) and financial crime regulation, and 2026 is set to bring fresh challenges and complexity for financial institutions.- Fenergo’s webinar: Regulatory Horizon Scanning 2026 brought together a panel of experts to unpack upcoming regulatory trends and evaluate their impact on compliance programs around the world. The discussion offered attendees an in-depth, region-by-region exploration of regulatory evolution - painting a clear picture of what must be prioritized for 2026.  

North America and Regulatory Modernization  

The U.S. is entering a period of structural reform, driven largely by the ongoing implementation of the AML Act 2020 and the Corporate Transparency Act. 

PwC’s Managing Director of Risk and Regulatory Affairs, Greg Calpakis highlighted the Investment Adviser AML Rule and beneficial ownership registry requirements in the regulatory pipeline. Greg explained that political transitions have slowed progress. He said, “that’s why requirements and deadlines from the AML Act are now past their due date but the federal agencies continue to look forward to passing those hopefully in the coming year or so.” 

Rory Doyle, Principal Regulatory Specialist, Fenergo explained that deregulation is really a resource-optimization effort: “This is essentially about applying what the Europeans have done for the last 20 years, which is taking a risk-based approach”. 

Sanctions: Complexity Across Jurisdictions 

Sanctions continue to be an area of compliance that changes quickly. The panel discussed the new operational challenges 2026 are likely to deliver in this area.  

Rory described traditional synergies in sanction regimes between Western financial systems beginning to diverge: “An entity may now get sanctioned in the EU but not be sanctioned in the US”. For multinational institutions, this calls for far more intricacy and detailed examination of financial transactions.  

He also highlighted the upcoming challenge of unwinding sanctions as geopolitical situations evolve: “Sanctioned teams are going to have to start thinking about how to unblock accounts as sanctions are lifted”. 

Adam McLaughlin, Director of Financial Crime, Fenergo added that sanctions are now being used more aggressively against organized crime, referencing increase in “transnational organized crime networks being sanctioned directly by the US and even in Europe”. 

AI Adoption: Divergent Global Approaches 

AI is reshaping compliance, yet regulatory stances vary widely, said Sharon Bodkin, VP of Product at Fenergo. She explained that adoption depends on “the prevalence of regulation in a jurisdiction or country”, noting that the EU’s AI Act provides clear boundaries.  

Sharon also explained that the uneven pace of global adoption stems from the level of risk financial institutions are willing to take and their operational readiness for AI. Sharon explained: “In the US, it’s seen very much as a competitive advantage at a strategic level”.  

Crucially, she emphasized that institutions must ensure “auditability, traceability and governance” to satisfy regulators globally. Fenergo’s AI powered FinCrime Operating System can add real value to financial institutions looking to achieve this.  

EU Harmonization: 2026 as the Implementation Year 

EU harmonization will progress in 2026 with a focus on aligning the varying regulatory requirements of the 27 jurisdictions within the EU. However, the biggest shifts are set to arrive in 2027. 

Adam described 2026 as “the planning year which will make way for 2027”. He noted that 2026 is the year when the first supervisory priorities of the new Anti-Money Laundering Authority (AMLA) will come out.  

Rory highlighted the operational impact of the AMLA’s harmonization project on financial institutions: “From 2027 the stopwatch starts ticking and financial institutions have five years to implement the harmonization requirements.” Rory noted that enhanced obligations will significantly expand due diligence workloads: “There will be a lot of work ahead in the run up to 2032, especially around beneficial owner.” 

APAC & MENA: Rapid Regulatory Expansion 

The APAC region is accelerating updates faster than expected. Sharon explained that Australia’s Tranche Two reforms are moving quickly, meaning firms must “assess the current state of the policy procedures and technology” to adapt in time. She stressed the importance of “testing and post implementation” reviews to ensure processes, systems and technologies are in line with the new regulations.  

Rory noted his surprise at “the speed of which Australia brought in these reforms” and the pace at which institutions are responding. 

Meanwhile, Adam drew attention to MENA’s rising regulatory maturity, including the UAE’s “fundamental reset of the law”, expanded money-laundering offenses, ultimate beneficial ownership and transparency expectations. 

Call to Action: Watch the Full Webinar On-Demand 

This webinar offers rich, region-specific guidance to help global institutions navigate an increasingly complex regulatory landscape. From sanctions shifts to the emerging AI oversight models and the far-reaching impact of EU harmonization, 2026 promises to be a pivotal year. Download the report to find out more.  

To hear the full discussion including audience Q&A and deeper insights from the panel, watch the on-demand recording now.