Anti-money laundering (AML) compliance has become a growing challenge for fintech companies expanding across borders. Keeping up with varying jurisdictional requirements and shifting AML regulations is no easy task, especially when each country has its own rules and enforcement priorities. These complexities can leave even the most innovative companies exposed to risk.
For example, in 2023, global fintech company Payoneer was fined $1.25 million by the New York State Department of Financial Services (NYDFS) for global AML compliance violations. Specifically, the company processed payments for individuals in sanctioned countries, including Syria, Sudan, and Iran.
The investigation revealed flaws in Payoneer’s systems, including oversight failures and insufficient algorithms. Although the transactions in question were a minuscule part of the company’s global operations, the resulting fine highlights how fintech compliance failures can quickly lead to financial losses, regulatory scrutiny, and reputational damage.
Staying ahead requires more than simply meeting the minimum standards. Instead, global fintechs must rethink their compliance strategies, starting with a clear understanding of growing regulatory pressures and the RegTech solutions available to address them.
Regulators around the world are paying closer attention to fintech companies as they work to keep up with rapid technological advancements and protect the integrity of the financial system. This heightened focus has led to stricter rules, greater oversight, and new trends shaping how fintechs approach compliance.
Here are a few key developments fintechs must incorporate into their compliance frameworks.
The Financial Action Task Force (FATF) continues to refine its guidelines to address emerging financial technologies. In 2024, FATF proposed revisions to Recommendation 16, commonly known as the "Travel Rule," which mandates that providers of cross-border payment services include complete originator and beneficiary information in wire transfers.
These updates aim to enhance transparency and combat illicit financial activities in digital payment processing.
Regulators are working together to create better alignment across jurisdictions, recognizing that coordinated efforts are needed to effectively combat these risks. For example, the Financial Stability Board (FSB) has introduced recommendations to improve how data frameworks operate across borders. These efforts help fintechs align their processes with global standards, reducing redundancies and speeding up transaction times.
AML collaboration between fintechs, regulators, and industry partners can help address compliance gaps and strengthen safeguards against financial crime in complex global markets.
Technology is playing a bigger role in compliance, with AI and ML leading the way. These tools help fintechs analyze vast amounts of data to detect unusual patterns or suspicious activities in real time.
For example, AI can flag transactions that deviate from normal behavior, while ML models improve accuracy by learning from past cases. These technologies make monitoring more efficient and reduce the likelihood of human error.
When implemented correctly, AI and ML can revolutionize how companies manage AML compliance. However, fintechs adopting AI must ensure these tools meet regulatory requirements and address concerns about transparency and fairness in decision-making.
As digital economies grow in regions like Latin America and Southeast Asia, emerging markets are experiencing a surge in fintech activity. Many countries in these regions are developing new frameworks to support fintech growth while ensuring alignment with international AML standards.
For example, regulators in Colombia and Chile have introduced measures to enhance transparency and combat financial crime, helping fintechs expand while staying compliant. Fintechs looking to enter these markets must stay informed about local rules and collaborate with regulators and partners.
Operating across multiple jurisdictions often exposes fintech companies to a patchwork of rules and enforcement priorities, making compliance difficult. Some of the most common challenges include:
Failing to effectively address these challenges can result in heavy penalties, operational disruption, and reputational damage, as seen in the examples below.
In 2025, Block, Inc. was fined $80 million by a coalition of 48 state regulators for inadequate AML compliance. The violations stemmed from inconsistent processes across states, including a failure to address high-risk customers in regions with stricter rules. While this case occurred within the U.S., it highlights the difficulty of navigating a patchwork of regulations. When operating across national borders, these challenges multiply.
BitMEX, a cryptocurrency exchange, was fined $100 million in 2025 for failing to comply with the U.S. Bank Secrecy Act. The company’s systems were not updated to meet new regulatory requirements, leading to a lack of adequate monitoring for high-risk transactions. The company admitted that, like many other cryptocurrency exchanges, it was too slow in adjusting to industry changes during a period of regulatory uncertainty.
This case demonstrates how rapidly changing AML laws can catch fintechs off guard, particularly those operating in jurisdictions with evolving cryptocurrency regulations.
In 2024, TD Bank was fined $3 billion for long-term AML compliance failures that spanned nearly a decade. The U.S. Department of Justice revealed that the bank failed to invest in adequate monitoring systems for high-risk transactions and ignored repeated warnings to address these deficiencies.
This case highlights the importance of investing in the technology, training, and staffing required to keep up with AML requirements. Failing to do so can lead to financial penalties and reputational damage that far outweighs the cost of staying compliant.
As regulations evolve, fintechs must adopt proactive strategies to stay compliant. Advanced technology, adaptable frameworks, and cross-border collaboration are key to future-proofing compliance.
AI and machine learning streamline processes, detect anomalies, and reduce human error. Markaaz integrates these technologies to simplify AML audits with real-time risk assessments and a database of over 540 million businesses.
Fintechs need compliance systems that can adapt to varying jurisdictional rules. By building flexibility into their processes from the start, companies can scale more easily as they expand into new markets or need to adapt to changing regulations. Markaaz offers configurable APIs that align with jurisdictional requirements, making it easier to maintain compliance wherever you operate.
Collaborating with regulators and joining anti-fraud networks strengthens compliance and enhances data sharing across jurisdictions. Markaaz supports cross-border collaboration by providing products designed to support global compliance efforts and streamline communication with regulators.
Keeping up with global AML compliance is challenging, and fintechs must adopt proactive measures to stay ahead. By tackling regulatory complexities head-on, adopting smarter technology, and building flexible compliance systems, fintechs can reduce risks and operate confidently across jurisdictions.
Markaaz helps make compliance simpler and more efficient, with real-time access to global business data, and AI-driven risk tools to help you manage risk and support AML audits. Connect with our team today to see how Markaaz can enhance your compliance and support your company’s growth.
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