12 Money Laundering Red Flags Finance Teams Must Watch in 2025

The 2025 Threat Landscape

Regulators levied US $4.6 billion in AML fines across 52 enforcement actions in 2024, a 31 % year-on-year jump.  

The EU’s new single-rulebook AML package entered into force in June 2024, and the EBA began consulting on technical standards in March 2025.  

Meanwhile, FATF’s July 2024 virtual-asset update spotlights the abuse of “off-ramp” exchanges, and its Feb 2025 grey-list added Kenya and South Africa.  

Red-Flag Deep Dives & 2025 Fixes (selected)

1  Rapid Fiat ⇄ Crypto Swaps

FATF warns criminals exploit lightly-regulated “off-ramp” exchanges. Require blockchain-forensics screening and source-of-funds evidence for swaps >$5 000.  

2  Grey-Listed-Jurisdiction Inflows

After Kenya & South Africa joined FATF’s list (Feb 2025), update geo-risk models via API within 24 h and push EDD triggers automatically.  

3  Cash-In / Cash-Out Chains

Combine deposit-velocity rules with ATM/cash-logistics feeds to validate legitimate demand.

(Continue concise 2–3-sentence controls for flags 4-12.)

Key Regulatory Changes (Aug 2024 – Mar 2025)

• EU AML Single-Rulebook & AMLA – package published June 2024; EBA RTS consultation launched 6 Mar 2025.  
• U.S. Corporate Transparency Act (Beneficial Ownership) – Supreme Court allowed enforcement to proceed, Jan 23 2025.  
• FATF R.15 Virtual-Asset Update – stricter Travel-Rule timelines (July 2024).  

People Also Ask – Quick Answers

Q: Most common 2025 red flag?

A: Rapid crypto-fiat swaps via unregistered exchanges.

Q: How to spot structuring?

A cluster of sub-threshold transfers (e.g., six × €9 800 within 24 h).

Q: Which sectors took the biggest AML fines in 2024?

Banking (US $3.2 bn), crypto (US $86 m), gambling (US $69 m).  

Key Takeaways

1. Crypto off-ramps dominate SARs — tighten VASP due-diligence.
2. Dynamic jurisdiction risk scoring is essential with new FATF grey-listings.
3. Hybrid analytics (rules + behaviour models) catch evolving patterns.
4. Regulatory momentum (EU AML package, U.S. BOI) keeps fines high—$4.6 bn in 2024.  

About the Author

Paul Keene is Marketing Director at Shufti and has spent 12 years helping banks and fintechs strengthen AML and fraud-risk frameworks.

References

1. Fenergo, AML Enforcement Action in 2024: $4.6bn in Global Fines (Feb 2025).  
2. FATF, Targeted Update on Virtual Assets & VASPs (July 2024).  
3. FATF, Jurisdictions under Increased Monitoring (21 Feb 2025).  
4. EBA, Regulation 2024/1620 & RTS Consultation (Jun 2024 / Mar 2025).  
5. Reuters, U.S. Supreme Court Allows CTA to Take Effect (23 Jan 2025).  
6. ComplyAdvantage, The Biggest AML Fines in 2024 (Mar 2025).  
7. Shufti Transaction Trust Screening internal dataset (Jan–Apr 2025).