Financial institutions across Europe, the Middle East and Africa are at risk of falling behind on new anti-money laundering (AML) requirements, with few expecting to meet the EU’s 2027 deadline, according to PwC’s research.

One-third of EU financial institutions believe they will be ready for the bloc’s AML package by July 2027, according to the findings. PwC described this as “a widening readiness gap at a critical moment for the financial sector.”

The EU AML Package, set for full implementation by July 2027, will introduce a single anti-money laundering rulebook across member states alongside stricter due diligence requirements. It also establishes the AML authority to oversee high-risk institutions and coordinate supervision.

More than half of institutions across the Emea region anticipate operational disruption over the next two years.

Around one third of institutions expect compliance costs to rise by between 10% and 30% in the coming years. At the same time, customer due diligence has emerged as a key operational bottleneck, with 40% of firms concerned that requirements are “overly rules-based”.

Many respondents pointed to the need for upgrades to AML data infrastructure to meet new expectations.

Around 10–12% of banks and asset managers outside the bloc consider current frameworks fit for purpose, with sentiment dropping to 7% among insurers.

A majority of firms are planning new investments in transaction monitoring tools, including 61% of banks and 57% of asset and wealth managers. However, adoption remains uneven, with data quality cited as the biggest barrier to advanced analytics and AI deployment.

While digital tools are widely viewed as an enabler, governance issues and inconsistent data standards continue to limit their effectiveness, the research found.

Gianfranco Mautone, partner, Emea anti-financial crime leader at PwC Switzerland, co-chair of the Emea AML Survey: “From a wider Emea perspective, the gap in supervisory expectations is becoming more pronounced. While the EU is moving toward greater harmonisation, many neighbouring jurisdictions are evolving at a different pace, creating significant complexity for cross‑border institutions. This affects not only compliance, but how firms organise operations, invest in technology, and manage risk across diverse markets. A coordinated approach to data, analytics and governance will be essential for firms that need to demonstrate effectiveness across multiple regulatory environments, not just within the EU.”

Michael Weis, anti-financial crime leader at PwC Luxembourg and co-chair of the survey, said: “The AML landscape across the EU is entering a new phase, with regulatory ambition accelerating even as firms continue to face operational and data challenges. Our findings show many institutions are still in the early stages of preparing for the EU AML Package, with readiness varying widely across sectors and jurisdictions. As implementation advances, the key test will be whether firms can translate the new rulebook and related RTS documents into scalable operating models supported by strong data and technology foundations.”