The complexity of new finance regulations in 2025
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In recent years, European and UK regulators have introduced comprehensive changes to address systemic risks, enhance transparency, and modernise financial markets. Frameworks such as Basel III, the Anti-Money Laundering Authority (AMLA) regulation, and the Digital Operational Resilience Act (DORA) aim to safeguard the financial system against evolving threats. However, these banking regulation initiatives also increase compliance complexity.
The Network and Information Systems Directive 2 (NIS2) underscores the urgency for robust cybersecurity measures, mandating strict standards for financial institutions to mitigate cyber threats. Meanwhile, e-invoicing mandates aim to increase transparency and operational efficiency by standardising financial processes. Together, these regulations highlight the intricate web finance teams must navigate.
The challenge is compounded for organisations operating across multiple jurisdictions, as they must manage compliance with varying regional regulations. Delays in meeting these obligations expose businesses to penalties, reputational damage, and missed growth opportunities. According to Yokoy’s Spend Management Outlook 2025, 42 per cent of finance leaders recognise this reality and rank regulatory adaptation as a top priority for 2025.
Key regulatory changes impacting finance leaders
Let’s have a look at the latest regulatory changes that affect the capital markets, the banking sector, and, of course, every financial leader, stakeholders and market participants:
NIS2 directive: Effective since October 2024, NIS2 requires enhanced cybersecurity practices to combat growing cyber threats targeting the financial sector. Key measures include mandatory incident reporting, regular risk assessments, and investment in robust IT systems. Non-compliance can result in substantial penalties and operational disruptions.
E-invoicing mandates: These regulations seek to eliminate inefficiencies in invoicing by requiring digital formats across the EU. While this simplifies compliance monitoring, it demands significant process adjustments for organisations relying on legacy systems.
New payment reporting obligations: These obligations compel businesses to maintain detailed payment records, ensuring greater accountability and aiding regulators in tracking fund flows. For finance teams, this means implementing systems capable of real-time data aggregation and reporting.
DORA (Digital Operational Resilience Act): DORA enhances the resilience of financial institutions to withstand and recover from disruptions, especially ICT-related incidents. It mandates that organisations establish robust monitoring, recovery plans, and vendor risk management protocols.
AMLA (Anti-Money Laundering Authority) regulation: This regulation centralises anti-money laundering efforts by introducing a unified supervisory authority, streamlining compliance processes for multinational organisations. However, aligning systems with this standard requires significant investment in technology and training.
Basel III: Basel III is an internationally agreed set of measures created by the Basel Committee on Banking Supervision (BCBS) as a reaction to the global financial crisis of 2007-2009. Basel III reforms have introduced stricter capital requirements and liquidity standards as buffers to enhance the resilience of financial institutions. By requiring banks to maintain higher capital ratios and implement liquidity coverage measures, the reforms aim to safeguard against systemic risk and ensure financial stability, also for consumer protection. However, for the banking system to remain profitable, SME loan interest rates have become more expensive.
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The top compliance challenges for finance teams
While the benefits of these regulations are clear, the path to compliance also has several obstacles you need to overcome:
Implementation barriers
84 per cent of finance leaders struggle to implement new regulatory requirements. The complexity often arises from outdated systems, fragmented processes, and resource constraints.
Multi-entity compliance
79 per cent of finance teams find it difficult to manage compliance across multiple entities and jurisdictions.
Cost of compliance
Meeting regulatory requirements comes with substantial financial outlays and allocation of funds. From technology upgrades to specialised training, 74 per cent cite high costs as a major challenge in adapting to new requirements.
Operational inefficiencies
Fragmented data systems, manual processes, and siloed workflows hinder timely compliance. Outdated tools make it difficult to adapt to dynamic regulatory frameworks, leading to delays, errors, and increased risk.
How finance leaders can simplify compliance without complexity
While some finance experts might feel that policymakers are too quick in their decision-making, many efforts should be considered prudential regulation. So, instead of complaining about the regulatory authorities, let’s instead focus on your economic growth in the private sector.
Invest in AI-driven technology
AI-powered platforms like Yokoy consolidate data across entities, ensuring seamless compliance monitoring and reporting. These tools reduce manual effort, enhance accuracy, and enable anomaly detection, saving time and mitigating risks.
Proactive training for teams
Regular training sessions equip employees with the knowledge to adapt to regulatory changes, reduce errors and improve compliance efficiency. Yokoy’s platforms facilitate consistent policy enforcement across organisations.
Cross-departmental collaboration
Finance teams must collaborate with legal, HR, IT, and external advisors to align strategies and ensure compliance across all functions. This holistic approach minimises blind spots and leverages collective expertise.
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Practical steps to future-proof compliance strategies
We strongly believe that finance leaders must adopt a dynamic and proactive approach to future-proof compliance strategies. Here is how we at Yokoy tackle this issue:
Regular compliance audits
Regular compliance audits are an essential starting point. Organisations can identify vulnerabilities in their operations by conducting routine assessments and ensuring alignment with evolving financial regulations. This proactive approach reduces non-compliance risk and builds resilience to avoid a financial crisis.
Flexible policies
Flexible policies are equally crucial. The regulatory landscape constantly changes, requiring policies that can adapt to new mandates without significant disruption. Finance teams should work closely with legal and operational units to draft robust and adaptable guidelines, ensuring businesses remain compliant regardless of regulatory complexity.
Scalable technology solutions
Another vital step is investing in scalable technology solutions. Modern tools that offer configurability enable organisations to grow alongside their regulatory obligations. For example, platforms equipped with artificial intelligence can handle complex compliance requirements across multiple jurisdictions, minimising operational inefficiencies and compliance costs. These solutions ensure that financial institutions can maintain liquidity and stability while adhering to regulatory reforms.
Regulatory monitoring
Finally, regulatory monitoring is a cornerstone of an effective compliance strategy. Businesses can leverage AI and automation to track changes in the regulatory environment in real time. This capability reduces manual intervention and allows organisations to respond swiftly to new regulations, safeguarding their competitive position in the financial markets.
How Yokoy simplifies compliance management
Yokoy’s cutting-edge platform offers a comprehensive suite of solutions to address the growing demands of regulatory compliance and manage the complexity of regulation reforms. Let’s discuss our financial services in detail so you and your company can benefit from all the great incentives available.
Centralised compliance monitoring
By consolidating compliance monitoring into a centralised platform, Yokoy ensures that finance leaders have real-time visibility into their operations across multiple jurisdictions. This level of integration is critical for maintaining consistency in a complex regulatory framework.
AI-powered anomaly detection
One of Yokoy’s standout features is its AI-powered anomaly detection, which proactively identifies discrepancies in financial data. This capability significantly reduces the manual workload on finance teams, minimising human error and ensuring adherence to regulatory requirements. By streamlining these processes, artificial intelligence allows financial institutions to allocate resources more effectively while mitigating risks.
Automated workflows
Yokoy’s automated workflows transform routine tasks such as invoice processing and reporting. By eliminating manual intervention, organisations can enhance operational efficiency and reduce compliance costs. This automation is particularly beneficial for managing cross-entity compliance, where outdated systems often hinder progress.
Real-time insights
Additionally, the platform provides real-time insights that empower finance leaders to make proactive decisions. This data-driven approach supports better risk management and aligns with the fast-paced demands of modern financial markets.
Country-specific controls
Yokoy also ensures that organisations meet country-specific compliance requirements through tailored controls. These customisations enable businesses to adapt quickly to regulatory changes without disrupting their operations.
By leveraging Yokoy’s technology, your organisation can streamline compliance and position itself strategically in a competitive financial environment with helpful metrics. Integrating artificial intelligence and scalable solutions transforms compliance from a burdensome necessity into a driver of financial stability and growth.
Next steps
While finance regulations in 2025 pose significant challenges, they also present an opportunity for forward-thinking organisations and various business models. By embracing AI-driven solutions, fostering collaboration, and investing in adaptable technologies, businesses can transform compliance from a burden into a competitive advantage.
Take the next step toward seamless compliance management. Book a demo with Yokoy to discover how our solutions can simplify your processes and future-proof your organisation.
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