Capital markets firms face unique AML challenges across jurisdictions due to their cross-border activity and high-risk products. This article outlines key KYB, KYC, KYT, and AML expectations in the U.S., UK, EU, and other financial centre – and how iComply helps automate compliance workflows with speed and precision.
Global capital markets are fast, fluid, and increasingly regulated. Broker-dealers, custodians, exchanges, and asset managers operate across jurisdictions where expectations for AML, sanctions screening, and beneficial ownership verification continue to grow.
In high-risk sectors like trading, custody, private placements, and tokenization, regulators want more than just client onboarding—they expect continuous monitoring, automated escalation, and clear audit trails.
As regulatory scrutiny rises across the UK capital markets sector, firms must implement more robust AML screening protocols. This article explains the evolving expectations of the FCA and implications of MiCA for UK intermediaries, offering actionable insights on how iComply can help automate ongoing monitoring, meet PEP and sanctions requirements, and demonstrate audit-ready compliance.
Capital markets firms in the United Kingdom—from investment banks to securities dealers and private wealth managers—operate under one of the most stringent regulatory frameworks in the world. In 2025, this framework is expanding again, and firms face increased expectations for anti-money laundering (AML) screening, politically exposed person (PEP) monitoring, and transaction risk management.
The UK’s Financial Conduct Authority (FCA) has made it clear: compliance isn’t just about onboarding—it’s about continuous monitoring, proactive alert management, and having defensible audit trails.
At the same time, the European Markets in Crypto-Assets Regulation (MiCA), while not directly applicable in post-Brexit UK, is setting a high bar across the continent. UK regulators are watching closely and signalling similar expectations, particularly for firms interacting with cryptoassets, cross-border flows, and high-risk jurisdictions.
New AML Challenges for UK Capital Markets in 2025
1. Increased Regulatory Scrutiny The FCA’s updated financial crime guide and Dear CEO letters in 2024 emphasized that firms must:
Demonstrate effective AML policies in practice, not just on paper
Screen customers and counterparties against updated sanctions and PEP lists
Have systems in place for continuous monitoring and adverse media alerts
2. Cross-Border Exposure and MiCA Influence While MiCA is EU law, its implementation is reshaping expectations globally:
Crypto custody, exchange, and tokenization platforms must adopt bank-grade AML processes
UK firms with EU branches or EU clients must match or exceed MiCA standards
Regulatory equivalency will be increasingly important for cross-border capital flows
3. Data Management and Audit-ability Legacy systems often lack clear audit trails, slowing down internal reviews and exposing firms to enforcement risk.
What the FCA Expects
From 2025 onward, UK capital markets firms are expected to:
Conduct real-time sanctions screening across all client relationships
Implement PEP and adverse media monitoring for ongoing due diligence
Automate AML escalation and disposition processes
Maintain complete records of screening decisions and risk scoring logic
Firms that rely on outdated or manual processes will struggle to meet these expectations and may face increased supervisory pressure.
How iComply Helps Firms Stay Ahead
1. Real-Time Global Screening iComply integrates with leading global watchlists to screen entities and individuals for:
Sanctions (UN, OFSI, EU, US, etc.)
Politically Exposed Persons (PEPs)
Adverse media and criminal proceedings
2. Risk-Based Workflow Automation Risk scoring and escalation logic can be customized per firm policy, allowing for:
Differentiated workflows by client type or geography
Automated alerts for matches, updates, or changes in status
3. Audit-Ready Reports and Logs All screening activity is logged with timestamps, actions taken, match details, and reviewer notes. These can be exported for internal audits, regulatory exams, or board reporting.
4. Flexible Integration and Deployment Whether firms prefer cloud, on-premise, or hybrid environments, iComply supports secure deployment with UK data residency options and edge encryption.
5. Consolidated Case Management Investigate alerts, assign actions, and document decisions in a unified AML dashboard—streamlining team workflows and reducing missed red flags.
Case Insight: Private Brokerage in London
A London-based investment firm implemented iComply’s AML screening and case management tools across its brokerage and custody divisions. Within 3 months:
Screening false positives dropped by 38%
Review time per flagged entity fell from 2 hours to 15 minutes
The firm passed its next FCA review with zero material findings
What to Watch in 2025
OFSI Sanctions List Expansions: New regimes tied to geopolitical risk will increase screening demands
Crypto-Market Intersections: UK regulators are expected to introduce MiCA-equivalent standards for crypto exchanges and custody providers
Supervisory Tech Expectations: The FCA is pushing for greater use of RegTech to support ongoing compliance
Take Action
Firms operating in UK capital markets can no longer rely on static screening or reactive compliance strategies. The cost of falling behind is not just reputational – it’s regulatory.
Speak with our team to learn how iComply’s AML platform can help you reduce false positives, streamline ongoing monitoring, and prepare for tomorrow’s audit – today.
Meet Rachel—an asset manager onboarding a boutique investment fund with international stakeholders. Before she can move forward, Rachel must navigate KYC, KYB, and AML checks to stay compliant. It’s a complex process, and mistakes can mean fines or reputational risk.
Here’s how Rachel’s experience differs when using manual methods versus iComply’s compliance platform.
Step 1: Collecting Client Information
Manual Process: Rachel emails forms, requests documents, and waits for incomplete responses. She sends follow-ups, and the back-and-forth delays onboarding.
With iComply: Rachel sends a secure, custom-branded onboarding link. The platform guides the client through document uploads and verifies everything in real time.
Result: Onboarding is fast and complete—no delays or missing data.
Step 2: Verifying Ownership
For corporate clients, KYB compliance requires identifying all beneficial owners with 25% or more ownership.
Manual Process: Rachel searches public records, cross-references shareholder lists, and struggles with foreign registries.
With iComply: The system pulls corporate filings and ownership details globally in seconds, even revealing hidden layers like trusts or holding companies.
Result: Rachel gets an audit-ready overview of the business structure without manual digging.
Step 3: AML Screening
AML regulations require checking clients and stakeholders against sanctions, PEPs, and adverse media lists.
Manual Process: Rachel manually inputs names into multiple databases and spends hours reviewing false positives.
With iComply: The platform screens individuals automatically and filters out irrelevant matches, flagging only genuine risks.
Result: Fewer false positives, faster resolutions, and more focus on real risks.
Step 4: Recordkeeping and Reporting
Compliance regulations require asset managers to store records securely and generate detailed reports during audits.
Manual Process: Rachel stores files in multiple folders and scrambles to compile audit reports from spreadsheets and emails.
With iComply: Every action is logged automatically. Rachel generates a detailed, audit-ready report with one click.
Result: Audit prep takes minutes, not hours.
A Tale of Two Experiences
In the manual workflow, onboarding takes days or weeks, frustrating clients and draining team resources. With iComply, onboarding is seamless—clients appreciate the professional experience, and Rachel’s team focuses on client relationships instead of admin work.
Key Compliance Considerations for Asset Managers
Complete Due Diligence: Collect and verify customer information thoroughly.
Ongoing AML Screening: Continuously monitor for sanctions, PEPs, and adverse media.
Ownership Transparency: Identify beneficial owners, especially in complex structures.
Data Security: Store sensitive information securely and comply with regulations like GDPR.
Audit Readiness: Keep comprehensive records and generate reports easily.
Why iComply?
With iComply, Rachel cut onboarding time, reduced manual work, and stayed audit-ready with end-to-end encryption and automated reporting. Compliance became a competitive advantage—not a burden.
Is your compliance workflow helping or holding you back? Let iComply simplify KYC, KYB, and AML so you can focus on growing your clients’ wealth. Let’s get started.
As a FINRA-regulated broker-dealer, maintaining robust Know Your Customer (KYC), Know Your Business (KYB), and Anti-Money Laundering (AML) workflows is essential to comply with regulatory requirements and safeguard your firm against financial crimes.
Below is a checklist to help ensure your compliance programs align with FINRA rules:
1. Know Your Customer (KYC)
Customer Identification Program (CIP):
Collect and verify essential customer information:
Full name
Date of birth
Address
Identification number
Maintain records of the identification information and verification methods used.
Customer Due Diligence (CDD):
Understand the nature and purpose of customer relationships to develop a risk profile.
Conduct ongoing monitoring to identify and report suspicious activities.
Enhanced Due Diligence (EDD):
Apply additional scrutiny to high-risk customers, such as politically exposed persons (PEPs) or those from high-risk jurisdictions.
Gather information on the source of funds and wealth.
Relevant FINRA Rule:
FINRA Rule 2090 – Know Your Customer: Requires firms to use reasonable diligence to know and retain essential facts concerning every customer. FINRA
2. Know Your Business (KYB)
Business Entity Verification:
Verify the legal status and ownership structure of corporate clients.
Identify and verify beneficial owners with a 25% or more ownership stake.
Risk Assessment:
Assess the nature of the business, its products, services, and customer base to determine risk levels.
Ongoing Monitoring:
Continuously monitor business accounts for unusual or suspicious activities.
Relevant FINRA Guidance:
While FINRA does not have a specific rule titled “KYB,” the principles of customer due diligence and AML compliance extend to business entities.
3. Anti-Money Laundering (AML) Compliance
Written AML Program:
Develop and implement a written AML program approved by senior management.
Ensure the program is reasonably designed to achieve compliance with the Bank Secrecy Act (BSA) and its implementing regulations.
Independent Testing:
Conduct independent testing of the AML program at least annually to assess its effectiveness.
Designated AML Compliance Officer:
Appoint a qualified individual responsible for overseeing AML compliance.
Ongoing Training:
Provide ongoing training for appropriate personnel to ensure awareness of AML responsibilities.
Suspicious Activity Reporting (SAR):
Establish procedures for detecting and reporting suspicious transactions to the Financial Crimes Enforcement Network (FinCEN).
Relevant FINRA Rule:
FINRA Rule 3310 – Anti-Money Laundering Compliance Program: Sets forth minimum standards for AML compliance programs, including the requirements mentioned above. FINRA
Additional Considerations
Recordkeeping:
Maintain comprehensive records of all customer information, transaction reports, and compliance efforts as required by FINRA and the BSA.
Risk-Based Approach:
Implement a risk-based approach to AML compliance, allocating resources commensurate with the level of risk identified.
Regulatory Updates:
Stay informed about updates to FINRA rules and federal regulations to ensure ongoing compliance.
By adhering to this checklist and the associated FINRA rules, your firm can establish robust KYC, KYB, and AML workflows that not only comply with regulatory requirements but also protect against financial crimes and enhance overall operational integrity.
Sarah, a compliance manager at a U.S. broker-dealer, had seen it all—delays, endless emails, and frustrated clients. She knew her team needed something better.
That’s when she found iComply.
Step 1: Simplify from Day One No more patchwork solutions. Sarah’s team set up iComply’s KYC and AML modules in days—not weeks. With custom workflows and a branded client portal, onboarding felt seamless, not stressful.
Step 2: Automate the Boring Stuff Instead of manually tracking sanctions lists or verifying documents, Sarah’s team let iComply handle it. Real-time alerts kept them ahead of risks, while audit-ready reports were just a click away.
Step 3: Keep It Secure, Keep It Compliant Data encryption, secure API integrations, and role-based access meant no more sleepless nights about data breaches or failed audits.
Quick-Start Checklist for Compliance Teams
Map your current onboarding process.
Enable only the compliance features you need.
Automate document requests and approvals.
Set up real-time alerts for PEPs and sanctions.
Customize reports for audit season.
In minutes, not months, Sarah’s team had a smarter compliance process that saved time and improved client trust.
Want the same results? Let’s make compliance seamless together.
Meet James—a compliance officer at a FINRA-regulated firm managing security tokens and tokenized funds. James is used to navigating complex regulations, but the FATF Travel Rule has added a new layer of pressure.
It starts with a client transferring cryptoassets to another platform. James knows the Travel Rule requires his firm to collect and share key information—names, wallet addresses, and account details—every step of the way. But the process quickly becomes overwhelming.
First issue: His team is manually verifying transaction details across different tools.
Next challenge: There’s no standard way to securely share data with other platforms.
Final complication: International transfers bring inconsistent rules that make compliance feel like guesswork.
By the end of the day, James feels more like a crisis manager than a compliance leader.
Now imagine a different scenario—where compliance with the Travel Rule is frictionless, thanks to iComply’s integrated compliance platform.
Simplifying the Travel Rule with iComply
With iComply, James’ compliance process transforms from reactive to proactive. When a client initiates a tokenized fund transfer, the system automatically collects and verifies all required data.
Automated Data Collection: Instead of juggling spreadsheets, iComply pulls client data, validates it, and attaches it to the transaction in real time.
Secure, Seamless Transmission: Information is shared through secure APIs, ensuring encrypted, standardized communication across platforms.
Regulatory Intelligence: iComply stays updated on regulatory changes globally, helping James’ firm remain compliant across jurisdictions.
The result? No more manual checks, last-minute fixes, or uncertainty during audits.
Turning the Travel Rule Into a Competitive Edge
The FATF Travel Rule is a reality for SEC and FINRA-regulated firms—and non-compliance isn’t an option. But firms that adopt smart solutions like iComply can:
Enhance data security: Protect sensitive client information with automated, encrypted verification.
Simplify workflows: Replace manual steps with streamlined processes that save time and reduce costs.
Build trust: Show clients and regulators that your firm is proactive, not reactive, about compliance.
James no longer spends his day scrambling to keep up with regulatory demands. Instead, he has confidence that his compliance framework is future-proofed and built to scale.
The Travel Rule doesn’t have to be a burden—it can be a chance to lead. With iComply, your firm can turn complexity into confidence. Ready to make compliance a competitive advantage? Let’s talk.
“Chandy,” is a technology and risk expert with executive experience at Boston Consulting Group, Citi, and PwC. With over two decades in financial services, digital transformation, and enterprise risk, he advises iComply on scalable compliance infrastructure for global markets.
Thomas is a global tax and compliance expert with deep specialization in digital assets, blockchain, and tokenization. As a partner at MME Legal | Tax | Compliance, he advises iComply on regulatory strategy, cross-border compliance, and digital finance innovation.
Thomas is a renowned identity and cybersecurity expert, serving as CTO of Connection Science at MIT. With deep expertise in decentralized identity, zero trust, and secure data exchange, he advises iComply on cutting-edge technology and privacy-first compliance architecture.
Rodney is the former President of ADP Canada and international executive with over two decades of leadership in global HR and enterprise technology. He advises iComply with deep expertise in international service delivery, M&A, and scaling high-growth operations across regulated markets.
Praveen is a serial entrepreneur and technology innovator, known for leadership roles at Lucent Bell Labs, ChargePoint, and the Stanford Linear Accelerator. He advises iComply on advanced computing, scalable infrastructure, and the intersection of AI, energy, and compliance tech.
Paul is a Canadian RegTech leader and founder of Maple Peak Group, with extensive experience in financial services compliance, AML, and digital transformation. He advises iComply on regulatory alignment, operational strategy, and scaling compliance programs in complex markets.
John is a seasoned business executive with senior leadership experience at CIBC, UBS, and Accenture. With deep expertise in investment banking, private equity, and digital transformation, he advises iComply on strategic growth, partnerships, and global market expansion.
Jeff is a former CFTC official and globally recognized expert in financial regulation, fintech, and digital assets. As founder of Bandman Advisors, he brings deep insight into regulatory policy, market infrastructure, and innovation to guide iComply’s global compliance strategy.
Greg is a seasoned investment banker with over 35 years of experience, including leadership roles at BMO Capital Markets, Morgan Stanley, and Citigroup. Greg brings deep expertise in financial strategy and growth to support iComply's expansion in the RegTech sector.
Deven is the former President of S&P and a globally respected authority in risk, data, and capital markets. With decades of leadership across financial services and tech, he advises iComply on strategic growth, governance, and the future of trusted data in AML compliance.
