Europe Recalibrates: Sustainability Reporting Rules Simplified to Protect Competitiveness
The regulatory landscape has been particularly dynamic. In Europe, policymakers took decisive steps to relax and simplify the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CS3D). Responding to pressure from industry and concerns about competitiveness, the EU scaled back both the scope and the complexity of the directives.
CSRD reporting will now apply only to the largest organisations, significantly reducing the number of companies required to produce detailed sustainability disclosures. CS3D was similarly narrowed, dropping earlier proposals around mandatory climate-transition plans and shifting the due-diligence burden to only the highest-turnover firms.
While the EU remains committed to sustainable governance, 2025 marked a notable recalibration of earlier ambitions.
Download the White Paper: DOJ Corporate Compliance Guidance and CS3D – Achieving Due Diligence Compliance
Regulatory Pause, Not Pullback: U.S. AML Expectations for RIAs Shift to 2028
Across the Atlantic, the United States also signalled a more measured regulatory pace. The AML rule for Registered Investment Advisers (RIAs), expected to bring advisers formally under Bank Secrecy Act obligations, was postponed from 2026 to 2028, with FinCEN reopening the rule for further review.
Though widely welcomed by the industry, the delay does not signify a retreat from the regulatory goal; rather, it reflects the complexity of tailoring AML obligations for a diverse adviser ecosystem. Firms have gained time, but expectations for stronger governance remain firmly on the horizon.
UK Centralises AML Oversight: FCA Set to Become Sole Supervisor of Law Firms
In the United Kingdom, 2025 brought a structural shift in professional-services supervision. HM Treasury announced plans for the Financial Conduct Authority to become the single AML/CTF supervisor of law firms, replacing the existing patchwork of professional bodies. This change reflects a desire for greater consistency, higher standards, and more robust enforcement capabilities. Law firms, many of which are critical intermediaries in financial transactions, will soon face an oversight environment more aligned with that of regulated financial institutions.
Learn more: What UK Law Firms Can Learn From Banks: Preparing for AML Reform and How AI can Help
Company Milestones and Achievements
Amid these global developments, smartKYC achieved exceptional progress. The company secured three new enterprise-level clients, reinforcing its role as a trusted partner for regulated institutions seeking highly accurate, explainable, and scalable AI-driven due diligence.
This commercial success came alongside an extraordinary year of industry recognition, with smartKYC featured in:
- RegTech100 2025
- Chartis Category Leader – Adverse Media Monitoring Space 2025
- Chartis RiskTech Quadrant – KYC Solutions 2025
- Chartis RiskTech100 2025
- Everest Group’s 50™ Financial Crime and Compliance Technology Providers 2025
- Greater London Enterprise Awards – Best KYC Due Diligence Automation Solutions 2025
- Greater London Enterprise Awards – RegTech Provider of the Year 2025
- A-Team Innovation Awards 2025 – Most Innovative KYC Investigations & Due Diligence Solution
- RegTech Insight Awards 2025 – Best Financial Crime Solution
Awards and Recognitions
smartEYE, the company’s perpetual adverse-media monitoring solution, also continued to gain traction as organisations seek real-time visibility across 20 languages. With information velocity accelerating and regulatory expectations tightening, smartEYE has become a core component of clients’ operational resilience and AML frameworks.
Looking ahead, 2026 promises a breakthrough in Source of Wealth intelligence, a significant new capability designed to address one of compliance’s most challenging requirements. Early developments suggest it will become one of smartKYC’s most impactful innovations to date.
2025 has been a year of progress, recognition, and renewed momentum. With a strengthened platform, expanding client base, and transformational innovation on the way, smartKYC enters 2026 with exceptional promise.
