Money laundering methods have always evolved alongside technology, regulation and global finance. In today's environment, compliance teams face an even more complex challenge as criminals leverage new technologies and exploit new vulnerabilities to move illicit funds.

Understanding these emerging tactics is critical for organizations that want to stay ahead of risk and not just react to it.

Here are the top trends in money laundering to watch in 2025:

1. AI-Generated Identities and Documents

The rise of sophisticated AI tools has made it easier than ever for criminals to generate fake IDs, passports and corporate documents that can pass traditional KYC and onboarding checks. Deepfake technologies and AI image generators are being used to create convincing synthetic identities, making manual verification processes increasingly unreliable. Compliance teams must integrate biometric verification, enhanced document analysis and behavioral analytics into onboarding workflows to stay ahead.

2. Trade-Based Money Laundering Through E-Commerce

With the explosion of global e-commerce, criminals are increasingly using fake online businesses, over- and under-invoicing, and falsified shipping documents to move dirty money across borders. Compliance teams working with exporters, importers, and online marketplaces must strengthen due diligence on counterparties and incorporate trade finance data into risk assessments.

3. Use of Non-Financial Businesses and Professionals

Money launderers are expanding their networks beyond banks and payment companies. Real estate agents, art dealers, law firms, and even accountants are being used as unwitting facilitators. In 2025, regulators expect non-financial industries to implement more robust KYC and AML measures. Financial institutions should assess third-party risk exposure to these sectors as part of their enhanced due diligence.

Compliance teams must verify the legitimacy of ESG-focused counterparties and scrutinize the actual operations behind claims of sustainability and impact.

‍

How Compliance Teams Can Stay Ahead

Money laundering in 2025 is not just faster. It’s unfortunately smarter.

‍
Compliance programs must evolve beyond traditional rule-based monitoring to embrace:

• Risk-based approach to Know Your Customer (KYC) and Ongoing Due Diligence (ODD)
• AI-driven transaction monitoring
• Cross-channel data integration and analysis
• Stronger collaboration with regulators and peers

Organizations that invest now in modernizing their Anti-Money Laundering (AML) frameworks will be better positioned to detect and prevent new laundering tactics before they cause damage.

The threat is real and evolving. Compliance leaders must evolve with it.

***************

WANT MORE? SOME RELATED KYC ARTICLES

AI-Generated Fake IDs Are Breaking KYC: Why Questionnaire-Based Verification Is Now Critical

KYC Isn’t Just Compliance. It’s a Frontline Defense Against Online Child Exploitation

What’s Trending in 2025 for KYC, Customer Due Diligence (CDD) and Third-Party Risk Management (TPRM)