In 2025, 70% of banking onboarding rejections for companies from the EU and Asia are due to AML non-compliance: account freezes caused by incomplete KYC checks or a weak source of funds. Imagine: your business is ready for cross-border payments, but the bank suddenly freezes operations due to suspicions of money laundering or terrorist financing. Is an AML audit mandatory before opening an account, especially with a PEP among the ultimate beneficiaries? In this article I will analyze the triggers for mandatory audits, the risks of ignoring them, and a step-by-step plan to get through onboarding without delays. Read to the end – receive a checklist and an ROI calculation, validated by COREDO’s practice in Europe, Singapore and Dubai: COREDO.
What is an AML audit in bank onboarding?
AML audit before onboarding: stages and differences
COREDO’s practice shows: for a Pte Ltd in Singapore via ACRA they first collect the articles of association, data on resident directors and the register of beneficiaries, then conduct a compliance audit, which reduces returns for compliance reasons by 50%.
| Aspect | KYC check | AML audit before onboarding |
|---|---|---|
| Focus | identity verification | Risk of money laundering/terrorist financing |
| Scope | Basic documents | Full compliance audit, transaction monitoring |
| Timeframe | 1–3 days | 1–4 weeks (high risk) |
| Mandatory | Always | When risk > average |
Risk-based AML approach in banks, 2025
When an AML audit is needed before onboarding
Mandatory AML audit in the EU (AMLA 2025)
For companies in the EU, an AML audit is required by EU banks under the EU AMLA 2025 in cases of PEP, source of funds from high‑risk areas or the new AMLA rules for onboarding 2025 — with strengthened data protection (GDPR) and 6AMLD for card issuance. FATF AML updates require an AML audit for companies in the EU before account opening, especially when ultimate beneficiaries are from the grey list.
An AML audit before card issuance in the EU in 2025–2026 is now standard for high‑risk cases, as in COREDO’s practice with payment providers in Cyprus.
| Jurisdiction | Mandatory AML audit | Triggers |
|---|---|---|
| EU (AMLA) | Yes, for high‑risk | PEP, FATF lists |
| Czechia/Slovakia | Yes, for cross‑border | UAE/Turkey risks |
AML audit before account opening in Asia and Africa
In Asia, AML before account opening is critical under the MAS Digital Onboarding Framework; the impact of FATF assessments on banking onboarding in Singapore is increasing MAS supervision, with checks of the ACRA database and MyInfo Business. How to pass KYC checks in Asian banks in 2025? A mandatory audit is required for non‑obvious discrepancies in ACRA/MyInfo that cause delays of +2 months, as with a COREDO client from Hong Kong.
In Africa and in ‘clean’ jurisdictions like Dubai, an AML audit ensures FATF compliance, minimizing sanctions compliance issues for foreign economic activity (FEA).
AML requirements and KYC checks: risks without an audit
Risks of account blocking without an AML audit for foreign trade businesses
The risks of account blocking without an AML audit include suspension of AML-related transactions, financial fines for non-compliance (up to millions of euros) and additional penalty assessments. For AML audits and source of funds for foreign trade businesses, COREDO’s practice found: without an audit 25% of accounts are blocked due to suspicious transactions, losing licenses and contracts.
Impact of PEPs and beneficiaries on onboarding timelines
AML compliance in 2025: digital onboarding
Digital onboarding 2025: GNN in AML and FHE
AML/CFT monitoring and automation
How to conduct an AML audit and pass bank onboarding
Conduct an AML audit using a checklist to pass bank onboarding:
- Risk self-assessment (AML risk map, risk-based approach).
- Document collection (source of funds, PEP declaration, CDD questionnaire).
- External compliance audit with AML legal support.
- Digital onboarding (eIDAS in the EU, MAS Digital Onboarding Framework in Asia).
Return on investment from AML audits for international companies
ROI from implementing AML services prior to onboarding reaches 25–40%: a compliance audit for sustainable banking relationships reduces client onboarding time and the share of returns for compliance reasons.
| Metric | Without AML audit | With AML audit |
|---|---|---|
| Onboarding time | 4 months | 3 weeks |
| Fines/blocks | 20–30% | <5% |
| ROI (annual) | – | +25–40% |
Key findings and recommendations
Take action:
- Conduct the mandatory AML audit (1 week; AML audit prior to bank onboarding).
- Prepare source of funds/PEP documents (KYC compliance).
- Select an AML services partner for licensing in the EU/Asia/CIS.
- Implement GNN/FHE for continuous monitoring.
- Monitor FATF lists and external reviews.