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AML Reform Is Failing: How Financial Institutions Are Drowning in Compliance Paralysis
A senior executive at Morgan Stanley warns that despite promises of modernization, AML reform in the U.S. has stalled, leaving firms burdened with redundant compliance obligations and legal uncertainty, while regulators struggle to define clear guidance.
May 27, 2025
Irina Norris
Irina Norris, Head of Production, CeFPro
Tags: Financial Crime
AML Reform Is Failing: How Financial Institutions Are Drowning in Compliance Paralysis
The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization
  • AML modernization is stalling due to delayed rulemaking and unclear guidance
  • Beneficial ownership requirements saw major compliance efforts go to waste
  • New national AML priorities have broadened obligations without clarity
  • Regulators encourage innovation but scrutinize minor compliance details
  • Firms feel caught between adopting tech and risking regulatory blowback
  • Lack of consistency across global jurisdictions adds to compliance strain
  • Canadian payments rules now affect many U.S. financial institutions
  • Expectations for updated national priorities in 2025 remain uncertain
  • Disconnection persists between high-level policy and examiner focus
  • AML reform is increasing compliance burdens instead of simplifying them
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