It is a common scam practice if a broker tries to dodge paying out a client. AML checks are done when client
open account. So the account
cannot be opened. Also when deposit is made, AML check is done, mainly to ensure the names match (no unauthorized 3rd party funding). In other words,
if you didn't pass AML check, you wouldn't be allowed to trade at all. Your account wouldn't have been opened or funded.
If there is fraud involved, the broker should report it to the authorities. They cannot just hold a withdraw request. And new rules coming in only prove a broker supposed to process deposits and especially withdrawals:
within 1 business day. No legit broker should be taking longer than 1 full business day to actually process withdraw (maybe 2 in an exceptionally rare situation).
The funds do not belong to the broker, they are just holding them temporarily in trust on behalf of their client.
BTW, other scam-like provisions like
offering trading bonuses and such will be eliminated also. So brokers can focus on actually fulfilling their fiduciary responsibility to their clients to fill orders , or close up shop. It's particularly arrogant of some of these unscrupulous brokers to act like they are doing something special when they are processing withdrawals. It is just normal part of business.