Irish financial institutions need to do more to prepare for new anti-money laundering rules, PwC survey finds

There is a significant gap between the perceived preparedness of financial institutions and their actual measures in response to the forthcoming European anti-money laundering package expected to take effect in July 2027.

Financial institutions in Ireland are facing significant escalation in anti-money laundering (AML) requirements.  New PwC research highlights substantial compliance gaps, rising costs, and operational strain as the EU’s evolving regulatory framework takes hold.  The new EU AML Package has a deadline of 10 July 2027 and introduces a whole new operational and supervisory framework which even the most sophisticated financial institutions are finding challenging to comply with.  Efforts to prevent money laundering are becoming more challenging due to ever more sophisticated, digitally-driven and cross-border threats.

The survey, based on responses from over 500 financial institutions across 40 countries in Europe including Ireland, the Middle East and Africa, highlights a common challenge: firms are grappling with increasingly complex anti-money laundering (AML) requirements amid rising supervisory expectations and regulatory pressures.  The survey reveals that Ireland’s financial services sector is confronting widespread execution gaps and operational pressures when it comes to anti-money laundering requirements.   The sector needs to do more to prepare for the new rules.

The survey reveals that over half (53%) of Irish financial institutions expect to see a significant uplift (up to 30%) in the compliance burden beyond current anti-money-laundering capacities (EMEA: 56%).

Widespread concern about preparedness 

The survey points to widespread concern about preparedness in Ireland and right across the EMEA region ahead of the EU AML Package deadline in July 2027.  Irish financial institutions are facing readiness challenges: less than half (43%) expect to be fully compliant with the new requirements by next July (EMEA: 33%). Reflecting systemic pressure, only 31% report to having completed both a detailed regulatory analysis and an impact assessment (EMEA: 23%). 

Customer due diligence is the execution challenge – rules-based approach a greater concern in Ireland 

Execution bottlenecks are becoming increasingly concentrated in the core anti-money laundering controls.  Customer due diligence (CDD) is a critical bottleneck and is the most pressing operational challenge in both Ireland and the wider EMEA region. 80% of Irish respondents are only partially aligned with the draft CDD Regulatory Technical Standards requirements (EMEA: approx 90%).   The number one concern in Ireland is the shift towards a rules-based over risk-based approach (Ireland: 53%; EMEA: 40%), followed closely by excessive data collection (Ireland: 61%; EMEA: approx 60%). 

Ireland: greater focus on talent expansion amid rising costs and skills pressures 

Cost and resource pressures are rising in Ireland and the EMEA region.  Three out of ten (30%) Irish firms expect AML compliance costs to rise by up to 30% (EMEA: 33%).   

At the same time talent constraints continue to tighten and are directly shaping resource strategies.  According to the survey, 37% of Irish firms are experiencing a shortage of qualified staff (EMEA: 33%). At the same time, signalling a strong focus on talent expansion, 58% of Irish respondents said that they plan to increase AML resources (EMEA: 33%) with 82% of those planning a 20%-30% headcount uplift.  

Muireann O’Keeffe, Director, Anti-Money Laundering, PwC Ireland, commented: “Irish financial institutions need to do more to prepare for new anti-money laundering rules.  The survey findings suggest that Irish firms, despite operating at the centre of EU financial activity, may face heightened risk of non-compliance unless they accelerate implementation efforts in the coming 12 months.  

The dual pressure—rising costs alongside growing workforce demands—highlights the structural shift underway in AML compliance, as firms transition from reactive compliance models to more industrialised, scalable approaches.  Financial institutions are caught in a cycle where rising regulatory expectations require more resources, yet the availability of appropriately qualified staff remains limited.”

Irish firms have greater technology ambitions compared to EMEA peers

Technology is widely seen as a solution to data and readiness gaps. Irish firms demonstrate stronger technology ambitions compared to their EU peers:  58% of Irish firms expect significant changes—or even complete overhauls—of their AML data and reporting architecture, a figure materially higher than the 30% average observed across the EMEA region.  Nearly three-quarters (72%) said that they have already launched initiatives to review transaction monitoring and screening capabilities (EMEA: approx 70%). 

Despite technology ambitions, the survey suggests that execution risk remains high unless underlying enablers are addressed.

Ireland at a pivotal moment

Muireann O’Keeffe concluded: “As a key hub for cross-border financial services, Ireland will be significantly impacted by the new EU AML Package.  The survey underscores that Irish firms share many of the same challenges as their EMEA peers—regulatory complexity, operational readiness gaps and increased compliance intensity driven by the EU AML Package.   

“The survey findings point to a decisive period ahead for Ireland. Firms that can bridge the gap between analysis and execution, industrialise customer due diligence processes, and harness technology effectively are likely to emerge as leaders in the new AML landscape.  Conversely, those that fail to accelerate may find themselves increasingly exposed as regulatory scrutiny intensifies and implementation timelines shorten.”

About the survey

Efforts to prevent money laundering, terrorist financing, and the proliferation of weapons of mass destruction – collectively referred to as ‘AML’ in the survey - are becoming more challenging due to ever more sophisticated, digitally-driven and cross-border threats.

The survey was carried out amongst 531 financial institutions across 40 countries in the EMEA region including Ireland to provide a comprehensive view of the EMEA AML landscape.  Respondents included major asset and wealth managers, banks, insurance companies as well as electronic and virtual payments firms.   Ireland’s respondents include a broad cross section of the Irish financial services ecosystem, spanning retail, corporate and private banks, insurers, asset managers, payment institutions, asset servicing providers and virtual asset service providers.