As companies prepare for 2026, compliance teams face a year of compounded regulatory, technological and geopolitical pressures that will force firms to reconfigure risk frameworks, governance and operational resilience. Emerging technologies, above all artificial intelligence, are being embedded into business models at pace, while intensifying climate-related obligations, shifting trade patterns and growing financial‑crime and cyber threats are widening the compliance remit. According to the original report, the combined effect will be greater scrutiny from regulators, investors and the public and a renewed premium on demonstrable controls and transparent reporting. [1]
Trusted AI will be a central theme. The rapid deployment of generative and other AI systems requires organisations to build inventories of AI use, update policies, and introduce human oversight for high‑risk decisions. The report cites Deloitte’s Trustworthy AI Guidance to underline that governance must cover “ethics, resilience, privacy, security, legal and contractual obligations, as well as alignment with company values.” Compliance teams must also weigh AI’s environmental footprint, with industry forecasts of large rises in data‑centre power demand, and be ready to align practices with emerging laws such as the EU AI Act and national proposals like the UK’s Data (Use and Access) Bill. Practical steps recommended include explainability, model monitoring, training and cross‑functional risk assessments. [1]
Climate and ESG obligations will deepen in both scope and enforcement. New EU measures coming into force in 2026, including the Carbon Border Adjustment Mechanism, the Energy Performance of Buildings Directive and updated Green Claims and Consumer Empowerment rules, will sit alongside streamlined CSRD and CSDDD requirements, the report notes, raising disclosure and due‑diligence demands. Firms are urged to conduct double materiality assessments, strengthen human‑rights and environmental due diligence throughout supply chains, and quantify climate‑related costs and resilience measures. The original report warns that the combination of physical risks (extreme weather, insured losses) and transition pressures will make robust sustainability controls business‑critical. [1]
Geopolitical volatility will compound compliance complexity. Trade tensions, sanctions and the redirection of supply chains, exemplified by shifting flows of Chinese exports and heightened tariff diplomacy, mean companies must continuously reassess customs, sanction and environmental reporting exposures. The report recommends scenario planning, enhanced third‑party due diligence, AI‑enabled sanctions monitoring and the 4Ts model (Tolerate, Treat, Transfer, Terminate) to govern responses. Nearshoring, supplier diversification or strategic withdrawal from risky jurisdictions are presented as tactical options to preserve supply‑chain integrity and reputation. [1]
Financial crime and anti‑money‑laundering (AML) obligations are widening in reach and intensity. Citing IMF and industry findings, the report highlights enduring gaps in detection and enforcement and describes structural shifts such as the transfer of AML powers to the EU Anti‑Money Laundering Authority and expanded scope to crypto‑asset providers and non‑financial actors. Businesses should update AML/CTF policies, implement enhanced due diligence and beneficial‑ownership verification, and prepare for tighter supervision by new authorities. The piece also notes the growing role of AI in improving suspicious‑activity detection and in automating reporting workflows. [1]
Fraud risk is becoming more technologically enabled and institutional. Fraud professionals report deep concern about the “industrialisation” of fraud through AI, deepfakes and crypto channels; UK Finance figures cited show rising fraud volumes and substantial prevented losses by banks. The report stresses the need for robust authentication, internal controls, customer redress frameworks and resources to manage insider and external scam risks, particularly in jurisdictions where corporate criminal offences for “failure to prevent fraud” can expose firms to criminal liability. Awareness training on AI‑enabled scams and strong whistleblowing channels are recommended. [1]
Regulatory divergence and expansion will increase compliance workloads. The UK’s domestic reforms, ranging from Making Tax Digital extensions to new joint liability rules for PAYE and updated transfer‑pricing regimes, are presented alongside EU and international changes that will demand frequent policy reviews, employee training and bite‑sized learning to keep teams current. Firms are advised to embed mechanisms that translate legal change into updated internal procedures and controls. [1]
Workplace polarisation, safety and non‑financial misconduct (NFM) are now front‑line compliance issues. The report documents rising political conflict at work, threats and violence, and the rollback or politicisation of diversity, equity and inclusion programmes in some jurisdictions. It recommends employers adopt HSE‑aligned risk assessments, de‑escalation training, psychological‑safety measures, and refreshed whistleblower protections. For regulated firms, the extension of FCA NFM rules heightens the need to monitor, report and escalate non‑financial misconduct to senior governance bodies. [1]
Ethics and culture remain persistent vulnerabilities. Survey data referenced in the report show under‑reporting of discrimination and misconduct and record levels of workplace conflict, reinforcing the need for regular culture surveys, exit interviews, and prompt, fair investigations. The guidance urges boards to receive management information on non‑financial misconduct so the “tone from the top” supports durable behavioural change. [1]
Modern slavery and forced labour are still endemic in many supply chains. The report points to ILO estimates on the scale and profit of forced labour and rising referrals in the UK, and it flags regulatory actions such as the EU Forced‑Labour restrictions and EUDR. Compliance priorities should include mapping supply‑chain provenance, conducting audit visits for high‑risk suppliers, embedding anti‑slavery clauses, and exploring emerging forensic tools (including isotopic testing and AI‑enabled monitoring) to detect forced‑labour risks. [1]
Cybersecurity and third‑party risk management are elevated boardroom issues. High‑profile outages and successful attacks in 2025 exposed systemic fragilities in digital public infrastructure and outsourced technology stacks; the report quotes Gartner forecasts for rising security spending and NCSC warnings about an increase in nationally significant incidents. Firms should adopt zero‑trust architectures, ensure board‑level cyber expertise, apply the IBM Framework for Securing Generative AI when relevant, and align resilience programmes with NIS2, DORA and new “Critical Third Parties” obligations to reduce operational dependency and notification risks. [1]
Taken together, the report frames 2026 as a year in which compliance will need to be proactive, multidisciplinary and tightly integrated with strategy. Practical steps across the ten challenge areas converge on a handful of common actions: map exposures, strengthen governance and oversight, invest in technology and skills, maintain up‑to‑date policies and training, and ensure transparency with regulators and stakeholders. The original report concludes that firms that treat compliance as an enabler of trust and resilience, rather than merely a cost centre, will be better placed to navigate the turbulence ahead. [1]
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Source: Noah Wire Services