UK Penalties for AML Regulatory Breaches Increased By 156% YoY – Report

Fenergo, the provider of AI-powered solutions for Know Your Customer (KYC), Anti-money Laundering (AML), transaction monitoring and Client Lifecycle Management (CLM), has released its analysis of financial institution enforcement actions for AML and Environmental, Social and Governance (ESG) violations from 1 Jan 2024, to 31 Dec 2024.

The Financial Conduct Authority (FCA) issued three “significant fines to financial institutions for critical failings in AML compliance practices at a total of $64,744,380 up from $25.2 million in 2023.”

Despite a sharp year-on-year decline (-80%) in the number of AML-penalties issued by the FCA since 2022, the rise in the “value of fines in 2024 was buoyed by punitive enforcement actions to Metro Bank and Starling Bank at $21.8 million $38.4 million respectively.”

Payments firm CB Payments, part of the Coinbase Group, was “handed a $4.5 million fine for significant weaknesses and gaps in the firm’s financial crime control frameworks.”

While the overall value of global penalties for AML-related fines “decreased by 30% to $4.6 billion compared to the previous year’s total of $6.5 billion, penalties to banks by regulators globally increased by 522% to $3.65 billion.”

Enforcement actions for transaction monitoring breaches, which “fall under AML regulations, surged even more sharply, with penalties exceeding $3.3 billion — a 100% year-over-year increase.”

Fenergo’s analysis also identified a rise in enforcement actions “related to environmental, social, and governance (ESG) issues.”

Global ESG-related fines surged “by 98%, totaling $37.7 million in 2024.”

In the United States, ESG-related fines rose “by 13%, reaching $21.5 million.”

Rory Doyle, Director of Regulatory Affairs at Fenergo, commented,

“The surge in penalties for AML violations in banking in the UK and around the world underscores the relentless pace at which financial crime evolves, and the growing expectations placed on financial institutions by regulators. While progress is being made, the data serves as a clear reminder that compliance must continually adapt to meet new challenges.”

Key findings of global regulatory fines imposed in 2024:

  • Banks accounted for 80% of all fines levied by global regulators, with penalties totaling $3.65 billion. Notably, TD Bank faced historic regulatory scrutiny, becoming the largest institution in U.S. history to plead guilty to violations of the Bank Secrecy Act (BSA).
  • Digital asset platforms were fined $762.9 million
  • Payments firms were fined $54.8 million
  • Buy-side firms were fined $52.85 million
  • Private banks were fined $48.2 million

Concluded Doyle:

“In today’s environment, staying ahead isn’t just about monetary loss and avoiding fines — it’s about building trust, safeguarding stakeholders and maintaining operational resilience. As the financial landscape becomes increasingly complex, leveraging advanced technologies and fostering a culture of proactive compliance will be key to addressing regulatory demands and mitigating risk. This is particularly evident in the UK, where politically exposed person (PEP) risk assessments have grown increasingly complex compared to those in other jurisdictions.”

Fenergo is the provider of AI-powered Client Lifecycle Management solutions that digitally transform “how financial institutions and corporates onboard and manage clients throughout their client lifecycle.”

Its software orchestrates every client journey from “initial KYC and client onboarding, automating regulatory compliance and enabling continuous monitoring throughout the client lifecycle (transaction monitoring, perpetual KYC), all the way to client offboarding.”



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