- 6 in 10 Irish Financial Orgs Rank Barrage of New Regulations As Biggest Challenge in 2025
- Revealed: Top 5 Compliance Challenges Facing Irish Financial Sector in 2025
- 8 in 10 Organisations Call for Clearer Guidance from Regulators
Nearly six in ten organisations in Ireland’s financial sector cite the continuous influx of new EU and Irish regulations as their biggest compliance challenge in 2025. From consumer protection and financial crime legislation to ESG mandates, data protection laws, and emerging AI regulations, the sheer scope and complexity of these requirements are straining compliance teams and reshaping risk management strategies across the industry.
Other major challenges facing organisations include compliance with operational resilience laws, such as the Digital Operational Resilience Act (DORA) (43pc) the escalating threats of cybercrime and cybersecurity risks (37pc), and the evolving landscape of AI-related regulations (35pc).
A new survey by Ireland's professional body for compliance professionals, the Compliance Institute, gathered insights from 150 senior-level compliance experts across Irish financial services organisations. The findings reveal the sector's outlook on the key challenges for the rest of 2025 and how firms can navigate them.
Top 5 Compliance Challenges Facing Irish Financial Sector
- Keeping up with the volume of new EU and Irish regulatory frameworks : 58%
- Ensuring compliance with the DORA : 43%
- Managing cybersecurity threats and cybercrime risks : 37%
- Navigating Artificial Intelligence (AI) governance and regulatory compliance : 35%
- Adequate resourcing for the compliance team/department : 32%
Commenting on the survey findings, Michael Kavanagh, CEO of the Compliance Institute,
“Almost 3 in every 5 compliance experts that answered this survey highlighted the volume of new EU and Irish regulations as their top challenge. It is abundantly clear that the overwhelming volume and pace of regulatory changes is putting significant pressure on compliance teams.
Many organisations are struggling to keep pace with these changes, compounded by finite resources and, in some cases, a shortage of suitably qualified staff. The sheer breadth of regulations demands a significant allocation of time, expertise, and operational focus, stretching teams to their limits.
As regulatory pressures mount, these organisations are grappling with the need to strengthen resilience, enhance risk management, and adapt to an increasingly complex compliance environment.
The attention respondents are placing on DORA (43pc) and cybersecurity threats (37pc) indicates that firms are prioritising resilience against digital disruptions and cyber risks. With cybercrime becoming more sophisticated, compliance professionals see regulatory adherence as a critical defence strategy. Cybercrime is developing and advancing at a pace so fast that organisations and legislators often cannot keep up”.
According to the Compliance Institute research, more than one third (35pc) of organisations see AI governance as a major compliance challenge, reflecting increasing regulatory scrutiny of AI use in financial services.
Mr. Kavanagh went on to say,
“This suggests organisations may be struggling to interpret upcoming AI regulations and to ensure responsible AI deployment. AI is a very new technology but it has developed at a pace which has taken many people by surprise. While there are many benefits to AI, including its ability to detect illnesses and diseases as well as weather patterns and extreme storms, its fast-growing capabilities and increasingly widespread use have raised concerns – such as privacy and misinformation issues, the potential of the technology to lead to job displacement, or even the risk of AI-altered images and videos disrupting the democratic process. Strong regulation in this area is crucial. It is important too that professionals are given the opportunity to upskill with regard AI and the requirements of AI legislation.”
Tools “Wishlist” to Overcome Compliance Challenges
When asked what support or resources would best help them address compliance challenges this year (see Table 2 in Appendix) respondents cited the following:
- Clearer guidance and coordination from regulators : 77%
- Specialised training and professional development : 70%
- Increased resources and funding : 46%
- Stronger governance and cross-functional support : 40%
- Advanced technology, Fintech, or AI solutions : 28%
Mr Kavanagh observed,
“Almost one in every two compliance professionals we asked believe more resources or funding are required. This reinforces concerns that compliance teams may be stretched to their limits and suggests the increasing complexity of compliance requirements may be stretching teams to their limits, requiring additional investment in personnel, technology, and external expertise.
The survey highlights a strong need for clearer regulatory guidance, increased training, and better resourcing to help compliance professionals navigate 2025’s challenges. While technology plays a role, human expertise, cross-functional collaboration, and regulatory clarity remain the most pressing needs for compliance teams.”
Appendix
Compliance Institute Survey 2025
Table 1: General Compliance Priorities
What are the top 3 most significant compliance challenges your organisation will face in 2025?
| Keeping up with the volume of new EU and Irish regulatory frameworks | 58% |
| Ensuring compliance with the Digital Operational Resilience Act (DORA) | 43% |
| Managing cybersecurity threats and cybercrime risks | 37% |
| Navigating Artificial Intelligence (AI) governance and regulatory compliance | 35% |
| Adequate resourcing for the compliance team/department | 32% |
| Preventing financial crime and fraud | 27% |
| Ensuring data protection and GDPR compliance | 26% |
| Aligning with Corporate Sustainability Reporting Directive (CSRD) ESG reporting requirements | 22% |
| Addressing economic uncertainty and its impact on compliance efforts | 14% |
Table 2: Support and resources
As a compliance professional, what support or resources would best help you address these challenges? (Select all that apply)
| Clearer guidance and coordination from regulators | 78% |
| Specialised training and professional development | 70% |
| Increased resources and funding | 46% |
| Stronger governance and cross-functional support | 40% |
| Advanced technology, Fintech, or AI solutions | 28% |
