Welcome to the July 2025 summary of news you can use as your bank or other financial institution attempts to stay up to date on the world of BSA/AML compliance. Our monthly series of curated news about FinCrime regulatory developments, resources and stories.
In this edition, three main stories emerge:
- U.S. Treasury postpones and reopens the IA AML Rule
- The EU’s new Anti-Money Laundering Authority (AMLA) officially begins operations
- WorkFusion Introduces a new AI Agent to automate enhanced due diligence for financial institutions
U.S. Treasury postpones and reopens the IA AML Rule
On July 21, 2025, the U.S. Treasury announced that it intends to postpone the effective date of the IA AML Rule from January 1, 2026, until January 1, 2028.
What is the IA AML Rule? It is the final rule that addresses the Anti-Money Laundering/Countering the Financing of Terrorism Program and suspicious activity report filing requirements for registered investment advisers and exempt reporting advisers. It seeks to address ongoing illicit finance risks, threats, and vulnerabilities posed by criminals and foreign adversaries that exploit the U.S. financial system and assets through investment advisers.
What reason did Treasury give to postpone the IA AML Rule? Treasury stated that FinCEN (Treasury’s Financial Crimes Enforcement Network) recognizes that the rule must be effectively tailored to the diverse business models and risk profiles of the investment adviser sector and that extending the effective date of the rule may help ease potential compliance costs for industry and reduce regulatory uncertainty while FinCEN undertakes a broader review of the IA AML Rule.
Why is FinCen reviewing the IA AML Rule? The review follows a trend of delayed or amended AML regulations in the US, including a re-evaluation of the Corporate Transparency Act’s beneficial ownership reporting requirements which ended with U.S. small businesses no longer needing to report Ultimate Beneficiary Ownership data.
Read more here:
The EU’s new Anti-Money Laundering Authority (AMLA) officially begins operations
As of July 1, 2025, the AMLA officially started its work to harmonize AML rules across the European Union and to coordinate cooperation between regulators and financial intelligence units (FIUs).
Based in Frankfurt, Germany, AMLA plans to have a permanent staff of 400 people, and “The aim of AMLA is to take the European anti-money laundering system to a new level,” stated Germany’s Department of Finance. It went on to state, “We want to enforce a tougher approach to financial crime. We want to hit fraudsters, tax evaders and money launderers where it hurts them most – with the money and assets they have acquired illegally.”
Across the EU, anti-money laundering regulations and initiatives continue to increase and grow more stringent. Just recently, France-based banks started to demand more KYC data from customers, which you can read about here.
WorkFusion Introduces a new AI Agent to automate enhanced due diligence for financial institutions
On July 15, 2025, WorkFusion announced the launch of Edward, an AI Agent specifically designed to automate and accelerate the laborious enhanced due diligence (EDD) process, significantly reducing manual effort and bolstering risk mitigation.
AI Agent Edward enables institutions to reduce manual effort by approximately 40-60 percent and increase throughput by 3-5X.
Along with the announcement, WorkFusion released a new whitepaper that explains how AI is transforming enhanced due diligence. The paper is available at this link.
Read more here:
A Generational Shift in AML – How AI Is Transforming Enhanced Due Diligence
To learn about the best solutions for automating your financial crime compliance operations in the areas of AML, KYC, Transaction Monitoring, and more, visit the WorkFusion Resources page or request a demo today.
AML,Banking & Financial Services,BSA/AML compliance,FinCrime
