AML Compliance and Business Risk: What the FinCEN-FINTRAC Symposium Means for M&A, Litigation, and Tax.

Last week, financial regulators from the U.S., Canada, the U.K., and Australia gathered in Washington, D.C. for the Second Annual FinCEN-FINTRAC Symposium. Their message was loud and clear: global financial crimes are expanding, and businesses need to be ready.

The symposium focused on the rising threats of fentanyl trafficking, human trafficking, child exploitation, and Chinese money laundering networks. While these issues may seem far removed from day-to-day business, the reality is that anti-money laundering (AML) and counter-terrorist financing (CTF) enforcement directly impacts companies involved in mergers and acquisitions, business litigation, and federal tax compliance.

Here’s what business owners, executives, and dealmakers should know.

1. Mergers & Acquisitions Demand Stronger Due Diligence

M&A transactions aren’t just about financial statements anymore. Regulators expect buyers and sellers to assess AML and CTF risks as part of due diligence. If a target company has exposure to cryptocurrency, complex cross-border operations, or unclear ownership structures, those risks can follow the buyer long after the deal closes.

Practical steps include:

• Expanding due diligence to cover AML and beneficial ownership risks

• Requiring representations and warranties around compliance

• Using escrow or holdbacks to manage potential liabilities

Bottom line: AML compliance is now a central factor in structuring M&A deals and protecting long-term value.

2. Business Litigation Risks Are Rising

With regulators increasing enforcement, lawsuits are often not far behind. Companies may face shareholder litigation, breach of contract claims, or regulatory disputes if AML risks weren’t properly disclosed during a deal. In particular, disputes in mergers and acquisitions increasingly hinge on whether sellers accurately represented their compliance posture.

Best practice: maintain strong internal compliance programs, keep thorough documentation, and make sure those efforts are visible. In litigation, a documented history of compliance can serve as a powerful defense.

3. Federal Tax Enforcement and AML Are Now Linked

Financial crimes and tax issues often overlap. Hidden income, offshore accounts, and crypto transactions can trigger both tax audits and AML investigations. Businesses must ensure full transparency in reporting foreign assets, beneficial ownership, and digital asset holdings. Failure to comply can mean double exposure: significant IRS penalties on the tax side and potential criminal investigations under AML laws.

Key takeaway: proper tax planning now requires proactive AML awareness.

The Big Picture: The FinCEN-FINTRAC Symposium highlighted what many of us in the legal field already see: AML compliance is no longer optional or peripheral, it’s a core business risk. Whether you’re navigating an acquisition, facing a lawsuit, or planning your tax strategy, these enforcement trends can reshape the outcome.

At Spizzirri Law, we work with clients to anticipate these challenges, protect their interests, and stay ahead of regulatory scrutiny. From M&A due diligence to litigation strategy to tax compliance, our goal is to help businesses operate confidently in this new environment.

Thanks for reading.

MD

Reference: FinCEN (September 16,2025). FinCEN Press Release, “Readout of the Second Annual FINTRAC-FinCEN Symposium in Washington, D.C.,” U.S. Department of the Treasury, Financial Crimes Enforcement Network (FinCEN).