The majority of financial institutions across Europe, the Middle East and Africa (EMEA) do not expect to be ready for the EU Anti-Money Laundering (AML) deadline in July 2027, research by PwC shows.

The EMEA AML Survey 2026 – which canvassed more than 500 firms in 40 countries – found more than half of the financial institutions anticipate significant operational disruption over the next two years due to sustained compliance pressure, with only one third expecting to be ready by the deadline.

The European Commission’s package of EU anti-money laundering legislation was published in May 2024, with the introduction of a single EU rulebook and the new Anti-Money Laundering Authority (AMLA) marking a step change in regulatory ambition, PwC said.

Operational challenges include customer due diligence (CDD), which is proving to be a key pressure point as enhanced data requirements expose gaps in systems and processes.

Around one-third of institutions in EMEA also expect compliance costs to increase by between 10% and 30%.

Outside the Bloc only 10% to 12% of banks and asset managers have confidence in the effectiveness of existing AML frameworks, falling to 7% for insurance firms.

Many firms also anticipate significant changes to their AML data infrastructure to meet new reporting and monitoring expectations, but while investment in AI is accelerating, data quality, governance and regulatory uncertainty continue to weigh on adoption.

Gianfranco Mautone, partner, EMEA anti-financial crime leader at PwC Switzerland and co-chair of the EMEA AML Survey, said: “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.”