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ARTICLE · 08 JANUARY 2026

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How Does FinTech Pose Higher AML Risks And Can Anything Be Done To Combat This?

Michael Kyprianou & Co. LLC
Michael Kyprianou & Co. LLC
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Financial technology ("FinTech") has had an unprecedented increase in this generation. However, with that, it has also introduced unique and significant anti-money laundering ("AML") risks. This is mostly due to its rapid speed, digital nature and at times, unmonitored global reach.

CyprusTechnology
Michael Kyprianou & Co LLC
Michael Kyprianou & Co LLC
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Financial technology ("FinTech") has had an unprecedented increase in this generation. However, with that, it has also introduced unique and significant anti-money laundering ("AML") risks. This is mostly due to its rapid speed, digital nature and at times, unmonitored global reach.

In the European Banking Authority ("EBA") 2025 Opinion, it raised concerns over the above across the EU financial sector. In the report, it identified that these vulnerabilities stem from geopolitical instability, regulatory changes, and digital transformation, which are reshaping the compliance landscape for financial institutions.

As FinTech is a relatively new and ever-expanding phenomenon, AML compliance is struggling to keep up which is seen via poor governance frameworks, underdeveloped AML/CTF systems, a lack of in-house expertise, a lack of oversight which has led to ineffective deployment and, in some cases, it has exacerbated vulnerabilities instead of mitigating them. Lastly,

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