As we approach 2025, compliance teams in Europe, the Middle East, and Africa (EMEA) face an increasingly complex regulatory environment, evolving supply chain disruptions, and an increase in third-party reliance. With new directives, regulations, and risks, organizations must adapt quickly, prioritising resilience and sustainability within their compliance programmes.
This blog post explores the key compliance priorities for EMEA in 2025, highlighting the interconnected nature of these regulations and the need for a holistic approach to TPRM and compliance management.
A Prioritised Focus on Resilience and Sustainability
Compliance teams are facing a paradigm shift in their priorities, with sustainability and Third-Party Risk Management (TPRM) resilience taking center stage. The evolving regulatory landscape is placing increased emphasis on environmental, social, and governance (ESG) factors, making sustainability reporting a critical component of corporate compliance.
The heightened risk of supply chain disruptions and compliance and ESG-related compliance issues and regulatory requirements necessitates a more dynamic and effective approach to TPRM.
These focuses are becoming strategic imperatives for businesses in 2025. With investors, customers, and employees demanding transparency about companies' environmental impact and ethical practices, comprehensive ESG reporting has become a key differentiator in the market.
By prioritising these areas, compliance teams can not only meet regulatory requirements but also drive operational efficiencies and financial benefits, as sustainability efforts often lead to cost savings through improved resource management.
Navigating a Complex Regulatory Landscape
In 2025 and beyond, compliance teams must move beyond treating regulatory compliance as a mere tick-box exercise and instead embrace a holistic, strategic approach to compliance risk management. This shift involves integrating compliance considerations into the organisation's overall business strategy, conducting comprehensive risk assessments, and developing customised frameworks that align with specific industry needs and business objectives.
Despite this need for a more holistic approach, a key aspect of this is maintaining a proactive stance towards upcoming regulatory changes. As we look towards 2025, compliance officers must stay vigilant about potential shifts in the regulatory landscape, particularly in areas such as AI regulation, sustainability, risk governance, and financial crime prevention.
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Corporate Sustainability Due Diligence Directive (CSDDD)
The Corporate Sustainability Due Diligence Directive (CSDDD) is set to become a cornerstone of corporate responsibility in the EU. Approved by the Council of the EU in March 2024, the CSDDD will require certain EU and non-EU companies to conduct environmental and human rights due diligence on their global operations and value chains.
Group 1 of EU Companies, which includes organisations with more than 5,000 employees or those with over EUR 1.5B in net turnover worldwide within the past financial year, will be expected to comply with the Directive's requirements by 2027. This timeline gives Group 1 companies two years to achieve compliance, with subsequent groups being affected in 2028 and 2029.
Compliance teams should start preparing for the CSDDD by:
- Assessing whether their organisation falls within the scope of the directive
- Understanding where the overlap is with Corporate Sustainability Reporting Directive (CSRD) processes
- Developing robust due diligence processes for human rights and environmental impacts
- Implementing systems to monitor and report on sustainability risks in their value chains
- Training employees on the new requirements and their implications
Simplified Reporting Laws May Be On the Horizon
The EU Commission is considering amending several sustainability reporting frameworks, including the Corporate Sustainability Reporting Directive (CSRD), the Taxonomy Regulation, and the Corporate Sustainability Due Diligence Directive (CSDDD).
This potential initiative, announced by EU Commission President Ursula von der Leyen in November 2024, would aim to streamline reporting requirements and reduce bureaucratic burden for companies, potentially cutting reporting obligations by at least 25% by 2025.
For compliance teams, these changes could significantly simplify the reporting process, reducing redundant and overlapping data points. However, it's important to note that while the reporting format may change, the substantive obligations are likely to remain largely intact.
Compliance teams should prepare for a transition period as the new omnibus law is developed and implemented, potentially requiring adjustments to existing reporting systems and processes.
EU Forced Labour Ban
The EU's new rule on banning imports suspected of being made with forced labour will have significant implications for compliance teams. This regulation aims to address human rights concerns in global supply chains and aligns with broader EU initiatives on corporate responsibility.
Key aspects of the Forced Labour Ban include:
- EU-wide investigations of forced labour issues outside the EU
- Ability to withhold "critical" imports pending proof of no forced labour in the supply chain
- Individual treatment of separable product components
- Creation of a Forced Labour Single Portal for compliance guidance and reporting
To address this new regulation, compliance teams should:
- Conduct thorough supply chain audits to identify potential forced labor risks
- Implement robust supplier due diligence processes
- Develop contingency plans for potential import disruptions
- Engage with suppliers to ensure compliance and transparency
EU AI Act: Regulating Artificial Intelligence
The EU AI Act, which took effect in 2024, is the first-ever comprehensive legal framework for artificial intelligence. This regulation aims to address the risks associated with AI while fostering innovation and positioning Europe as a global leader in AI governance.
Key aspects of the EU AI Act include risk-based classification of AI systems, strict requirements for high-risk applications, prohibitions on certain unacceptable AI practices, and enforcement mechanisms and governance at the EU and national levels.
To prepare for the AI Act, compliance teams should:
- Conduct an inventory of AI systems used within the organisation
- Assess the risk level of each AI application according to the Act's criteria
- Implement governance structures and processes for AI development and deployment
- Ensure transparency and explainability of AI systems, especially for high-risk applications
New EU Anti-Money Laundering Authority (AMLA)
The establishment of the EU Anti-Money Laundering Authority (AMLA) marks a significant step in the fight against financial crime. Set to take over primary oversight of the sector from the European Banking Authority (EBA) by the end of 2025, AMLA will have far-reaching implications for compliance teams within financial sectors.
Compliance teams should prepare for AMLA by:
- Reviewing and updating their anti-money laundering/countering the financing of terrorism (AML/CFT) policies and procedures and applying them across the extended enterprise
- Enhancing their risk assessment methodologies
- Strengthening due diligence processes
- Preparing for potential direct supervision by AMLA
German Supply Chain Due Diligence Act (LkSG) Still Holds Importance
While the EU-wide CSDDD is on the horizon, the German Supply Chain Due Diligence Act (LkSG) remains a crucial compliance priority for many organisations. As the regulations take hold for different organisational tiers, companies must continue to adapt their processes to meet LkSG requirements.
Compliance teams should focus on:
- Ensuring ongoing compliance with LkSG requirements as they apply to different company sizes
- Aligning LkSG compliance efforts with broader EU initiatives like the CSDDD
- Continuously improving supply chain risk assessment and management processes
- Preparing for potential regulatory inspections and enforcement actions
EU Whistleblowing Directive
The EU Whistleblowing Directive, which aims to protect persons who report breaches of Union law, continues to be a critical compliance priority. As member states finalize their transposition of the directive, organisations must ensure they have adequate whistleblowing mechanisms in place.
To help meet the needs of the Directive, compliance teams should prioritise:
- Implementing and maintaining effective internal reporting channels
- Ensuring confidentiality and protection for whistleblowers
- Developing clear procedures for handling and investigating reports
- Training employees on their rights and obligations under the directive
Managing Geopolitical Challenges
Beyond the changing regulatory landscape, organisations and their compliance teams face other challenges that need focused prioritisation, as well.
Geopolitical challenges, such as the ongoing war in Ukraine, the Middle East, and other geopolitical tensions continue to pose significant challenges for compliance teams in EMEA. Organisations must navigate a complex landscape of sanctions, trade restrictions, and political risks.
Key areas to consider include the need to monitor and adapt to rapid changes, assess and mitigate supply chain risks, address potential cybersecurity threats that could stem from these conflicts, and manage the impact of these tensions on the workforce.
Some best practices include:
- Implement robust geopolitical risk assessment processes
- Develop scenario-based planning for potential geopolitical shifts
- Enhance third-party due diligence procedures for high-risk regions and business partners
- Collaborate closely with other departments to address the multifaceted impacts of geopolitical challenges
The Need for AI-Enabled Risk Intelligence
In 2025, AI-enabled risk intelligence will become crucial for compliance teams facing increasingly complex risks and regulatory updates. Traditional, manual methods of TPRM will no longer be sufficient, as they often rely on flawed or incomplete data, leading to compromised outcomes.
AI-driven solutions transform TPRM by analysing vast amounts of data with unprecedented speed and accuracy, providing compliance teams with summarised, actionable insights focused on what matters most.
The adoption of AI-powered risk intelligence tools offers several key advantages for compliance teams. These include minimising false positives through advanced disambiguation algorithms, ensuring broad risk coverage with frequent data collection, and presenting structured, connected data that can be easily integrated into broader systems. Other benefits include enhancing decision-making processes, reducing manual labor, and maintaining agility in the face of evolving challenges.
This technological advancement not only improves the efficiency of risk management programs but also ensures organizations remain resilient in an increasingly complex regulatory landscape.
Conclusion: Looking Forward to 2025
Compliance teams in EMEA face a complex and interconnected regulatory landscape in 2025. By proactively addressing these priorities and adopting a holistic approach to compliance, organizations can navigate this challenging environment effectively, mitigate risks, and build resilience and sustainability for the future.
Interested in learning more about how GAN Integrity’s Solutions help you meet these 2025 priorities? Schedule a demo with us today.
Miriam Konradsen Ayed is the VP of Product Marketing at GAN Integrity. With a track record of building and executing GTM strategies and growing pipeline for SaaS products, she brings products to life through value-driven positioning and messaging.