Almost eight in ten (78%) organisations in Ireland’s financial services sector are concerned that funding cutbacks for US regulatory bodies under President Trump’s administration could weaken global financial crime enforcement and lead to “serious vulnerabilities”.
And a similar number (78%) believe that looser US anti-money laundering (AML) rules will either make it more difficult for Irish firms to follow EU rules – or could have the potential to do so.
This is according to the results of a new survey by Ireland's professional body for compliance professionals, the Compliance Institute, which polled approximately 110 compliance experts working primarily in Irish financial services organisations nationwide.
The survey examined the views of compliance professionals around the deregulatory agenda which President Donald Trump has pursued since he was re-elected earlier this year which, according to his administration, is aimed at ‘reducing unnecessary, burdensome, and costly Federal regulations’[1]. Included in this deregulatory agenda is a freeze on all new US financial regulations, a recent U-turn on AML rules that helped track illicit finance[2], and funding cutbacks for key regulatory bodies.
Headline findings from the Compliance Institute survey reveal that:
- Four in ten (41%) Irish financial services organisations believe that looser US AML obligations pose a challenge for Irish firms following EU rules as it will make cross-border compliance more difficult.
- 37% said that the laxer US AML rules had the potential to create challenges for Irish firms and is something that they are “watching for further developments” (see Table 3 in Appendix)
- Almost eight in ten Irish financial services organisations are concerned that the Trump administration’s reduced funding for US regulatory bodies could weaken global crime enforcement, with almost half (46%) saying that it could create “serious vulnerabilities” and almost a third (32%) believing it could lead to gaps in enforcement (see Table 1 in Appendix).
- More than 7 in 10 (72%) are concerned that a freeze on US financial regulation could increase the risk of AML in cross-border activities – as well as AML sanctions. Of these, almost 3 in 10 (28%) are “very concerned as it could reduce oversight significantly”, while 44% are “somewhat concerned and are monitoring it closely”
Commenting on the survey findings, Michael Kavanagh, CEO of the Compliance Institute said:
“The deregulatory agenda which President Trump has pursued since he was re-elected has led to concerns that the US is becoming a less regulated financial environment under his administration. . While some small business groups in the US have supported Trumps deregulatory agenda and rollback of what they consider to be ‘onerous’ regulations, others are concerned that laxer rules could open the door to fraud, kleptocracy and other financial crime.
Our survey shows that the Trump administration’s deregulatory agenda has sparked widespread concern across the Irish financial services industry – and not just because it could open the door to global financial crime. Irish financial services organisations are also alarmed that President Trump’s laxer AML rules could make it more difficult for Irish firms to meet their own AML obligations under EU law, leaving them vulnerable to fines and sanctions as a result.”
The Compliance Institute survey found that a small fraction of Irish firms are not concerned about Trump’s deregulatory agenda:
- One in five (22%) do not think looser US AML obligations pose a challenge for Irish firms in the context of their compliance with EU rules, saying they expect to follow EU frameworks regardless.
- Only one in eight (12%) are not concerned about the freeze in new US financial regulation, believing current frameworks are sufficient, while 16% feel it’s too early to say what impact the freeze might have.
- One in ten (11%) Irish financial services organisations are not concerned about the cutbacks to US regulatory funding - because they are confident international standards will hold. A further one in ten (11%) are unsure but are following developments “with interest”.
Mr Kavanagh added:
“According to our own research[3], cybercrime is the number one threat when it comes to financial crime in Ireland. It is developing and advancing at such a pace that organisations and legislators cannot keep up. Against this backdrop, moves by President Trump to row back on important AML regulations and cut funding for US regulatory bodies is a huge concern.
A survey conducted by the Compliance Institute earlier this year found that more than half of compliance professionals in Irish financial services companies reported that their organisations had experienced cybercrime in the last five years. Cybercrime is no longer a niche or occasional risk – it’s a pervasive, evolving threat that affects almost every organisation in some shape or form. Strong regulations need to be in place to counter and manage these risks. So, Irish financial organisations are right be concerned that Trump’s laxer rules could cost him, and others, more money than he is hoping his deregulatory agenda will help him save – as this could simply open the door to financial criminals.”
[1] As per statement from US White House, January 31, 2025
[2] In late March 2025, the Trump administration exempted tens of millions of companies from an anti-money-laundering law that was passed during President Donald Trump’s first term to crack down on anonymous shell companies that facilitate financial crimes. The move effectively dismantles a key part of the Corporate Transparency Act, which requires businesses to reveal their true owners to the government.
[3] Conducted in December 2023
