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 global financial institution enforcement actions from Jan 1, 2024, to Dec 31, 2024.
Fenergo’s report reveals critical insights into the regulatory landscape.
Nearly 50 fines were issued by U.S. regulators in 2024, with North America accounting for an “overwhelming 95% of the $4.6 billion in global financial penalties.”
In 2024, U.S. regulators issued over “$4.3 billion in fines; of this amount, $1.06 billion” was levied against U.S.-headquartered financial institutions.
While global penalties decreased by “30% compared to the previous year’s total of $6.57 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.”
Tracy Moore, Director of Regulatory Affairs at Fenergo, commented:
“The surge in penalties for AML violations in banking in the US 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 U.S. regulated fines imposed in 2024:
- Banks accounted for 82% of fines levied by U.S. regulators, with penalties totaling $3.52 billion. These fines represented approximately 96% of all fines imposed on banks globally. 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).
- Broker-dealers incurred over $3 million in fines, constituting more than 85% of the global fines against broker-dealers.
- Digital asset platforms were fined $756+ million, comprising approximately 99% of the world’s fines in this category.
- Securities firms faced $6.5 million in penalties, accounting for 85% of the global total.
- Buy-side firms were fined $28.952 million, making up almost 55% of the global fines in this category.
Moore remarked:
“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.”
As covered, Fenergo explains that 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 digitally orchestrates every client journey from initial KYC and client onboarding, automating regulatory compliance as well as effectively enabling continuous monitoring “throughout the client lifecycle (transaction monitoring, perpetual KYC), all the way to client offboarding.”
