Top AML, KYC, and KYB Trends to Expect This Year

Financial crime compliance is entering a decisive phase. Regulatory pressure is increasing, enforcement is becoming more data-driven, and expectations around customer due diligence are rising across all sectors. This year, AML, KYC, and KYB programs are shifting from static compliance checklists to continuous, intelligence-led systems.

Below are the most important AML, KYC, and KYB trends shaping compliance strategies this year.

1. From One-Time Checks to Continuous Due Diligence

Regulators are moving away from the idea that KYC is something done only at onboarding. Ongoing monitoring is now a core expectation.

Firms are expected to:

• Continuously reassess customer risk
• Monitor changes in ownership, control, and behavior
• Refresh KYC and KYB data dynamically rather than on fixed cycles

This shift aligns with the broader regulatory push toward shorter and more frequent review cycles, as outlined in How Lean Teams Can Stay Ahead of Shorter AML Review Cycles.

2. KYB Scrutiny Is Catching Up With KYC

KYB is no longer treated as a lighter version of KYC. Authorities are explicitly targeting weaknesses in corporate due diligence, especially around shell entities and opaque ownership structures.

Key developments include:

• Deeper verification of beneficial owners
• Stronger validation of control relationships
• Increased use of external registers and cross-border data sources

This trend is reinforced by the EU’s evolving supervisory framework under the AML package, which significantly raises expectations for business customer due diligence. See EU AML Package 2025: A Wake-Up Call for Europe’s Compliance Landscape for a detailed regulatory perspective.

3. Beneficial Ownership Transparency Becomes Non-Negotiable

Beneficial ownership verification is one of the most enforced AML priorities this year.

Regulators expect firms to:

• Identify ultimate beneficial owners accurately
• Resolve inconsistencies across registers and documents
• Detect nominee arrangements and indirect control

Manual ownership mapping and spreadsheet-based tracking are increasingly viewed as high-risk practices, especially in complex corporate structures.

4. Risk-Based AML Is Being Tested in Practice

While risk-based AML frameworks have existed for years, supervisors are now challenging how well they are actually implemented.

This includes:

• Clear documentation of risk models
• Evidence that risk scoring impacts real decisions
• Demonstration that low-risk and high-risk customers are treated differently in practice

Digitization is becoming essential to meet these expectations. As explained in Digitize Your AML Risk Policy: Automate KYC / KYB Risk Assessments, static policies are no longer sufficient to demonstrate effective risk management.

5. Automation With Accountability, Not Blind AI Adoption

Automation is expanding across AML, KYC, and KYB, but regulators are emphasizing explainability and control.

This year’s focus is on:

• Transparent decision logic
• Human oversight for high-risk cases
• Auditability of automated processes

Supervisors increasingly expect firms to prove who is responsible for decisions made by automated systems. This challenge is addressed in To-Do Management: Bringing Accountability to Automated KYC/KYB, which highlights how operational ownership supports regulatory defensibility.

6. Data Quality Becomes a Regulatory Issue

Poor data quality is now seen as a root cause of AML failures.

Supervisors are assessing:

• Data completeness and accuracy
• Consistency across systems
• Timeliness of updates

Firms relying on fragmented or manually maintained data face higher compliance risk, slower reviews, and increased audit findings.

7. Cross-Border Consistency Is Under the Spotlight

As AML regimes become more harmonized, especially in the EU, regulators are examining whether global organizations apply consistent standards across jurisdictions.

This includes:

• Alignment of KYC and KYB thresholds
• Comparable risk assessments across countries
• Central oversight with local execution

The EU AML framework reinforces this expectation, reducing tolerance for country-by-country interpretation gaps.

8. Regulatory Expectations Are Becoming More Explicit

Supervisory guidance is shifting from high-level principles to concrete expectations.

This year, firms should expect:

• More detailed examination findings
• Clearer definitions of minimum controls
• Less tolerance for ambiguous interpretations

Compliance teams are expected to proactively align with guidance rather than react after enforcement actions.

What This Means for Compliance Teams

AML, KYC, and KYB are no longer back-office functions. They are becoming strategic capabilities that affect growth, customer experience, and regulatory resilience.

Firms that succeed this year will:

• Invest in continuous due diligence
• Strengthen KYB and ownership verification
• Digitize and operationalize risk policies
• Align automation with accountability and governance

Those that rely on legacy processes and manual workarounds will find it increasingly difficult to meet supervisory expectations.

‍