European financial institutions are struggling to get ready for the EU’s anti-money laundering overhaul, with only around one-third expecting to be prepared by the July 2027 deadline, according to PwC.
The consultancy’s EMEA AML Survey 2026, based on responses from more than 500 institutions across 40 countries, suggests preparations remain patchy at a time when the bloc is pressing ahead with one of its most ambitious regulatory reforms in years. The results were published on 21 April 2026.
More than half of respondents across Europe, the Middle East and Africa said they expected the impact on their AML functions to be either “significant” or “strong” over the next two years, pointing to sustained pressure on staffing, systems and controls. The findings add to concerns that many firms are still some way from translating the EU’s new rulebook into day-to-day operating models.
Customer due diligence bottleneck
Customer due diligence has emerged as one of the clearest fault lines in the preparations. PwC said 40% of institutions viewed CDD requirements as overly rules-based, making them the main operational bottleneck ahead of the 2027 deadline.
That reflects a broader problem facing the sector: the burden is no longer confined to policy interpretation or legal analysis, but extends deep into onboarding processes, documentation standards and data management. Around one-third of institutions also expect compliance costs to rise by between 10% and 30% in the coming years, underlining the scale of the adjustment required.
Michael Weis, Anti-Financial Crime Leader at PwC Luxembourg and co-chair of the survey, said the results showed that many firms had yet to move beyond the early phases of implementation. “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,” he said. “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.”
Outside the EU, confidence drops
PwC’s survey also pointed to a sharp divergence between the EU and the wider EMEA region. Outside the bloc, confidence in the effectiveness of current AML frameworks was markedly lower. Only 10% to 12% of banks and asset managers outside the EU said existing regimes were fit for purpose, while among insurers the figure fell to just 7%. This is a concern for firms operating across borders, particularly those having to align the EU’s push for harmonisation with neighbouring jurisdictions evolving at different speeds.
Gianfranco Mautone, Partner, EMEA Anti-Financial Crime Leader at PwC Switzerland and co-chair of the survey, said the mismatch was creating additional complexity for international groups. “While the EU is moving toward greater harmonisation, many neighbouring jurisdictions are evolving at a different pace, creating significant complexity for cross-border institutions,” he said.
Technology held back by weak data
Many firms expect technology to play a larger role in their response. PwC said 61% of banks and 57% of asset and wealth management firms in EMEA plan to introduce new technologies in transaction monitoring. But the survey suggests that investment in AI and advanced analytics is being constrained by a more basic problem: weak data quality.
It was cited as the most important barrier to advanced technology and AI adoption by 89% of electronic and virtual payments firms, 64% of banks and insurance companies, and 52% of asset and wealth management firms.
The picture that emerges is less one of regulatory resistance than operational fragility. Firms may accept the direction of travel, but many still appear to lack the data foundations needed to implement the changes at scale.
Race to 2027
As the July 2027 deadline approaches, the challenge for firms will be less about understanding the direction of regulation and more about execution.
Weis said the next test would be whether institutions can translate the new rulebook and related technical standards into workable structures. “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,” Weis remarked.
