About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Briefs

UK Penalties for AML Regulatory Breaches More Than Double 2023 – Fenergo Research

Subscribe to our newsletter

According to a new analysis by Client Lifecycle Management and perpetual KYC solution provider Fenergo, financial institutions in the UK have experienced a sharp increase in the total value of AML-related fines despite a drop in the number of enforcement actions.

In 2024, the Financial Conduct Authority (FCA) issued three significant fines totalling $64.74 million, up from $25.2 million in 2023. While the overall number of AML penalties from the FCA has declined by 80% since 2022, the total value of fines has risen notably. Notable cases include Metro Bank ($21.8 million) and Starling Bank ($38.4 million), with an additional $4.5 million fine against CB Payments, part of the Coinbase Group, for weaknesses in financial crime control frameworks.

Fenergo’s data highlights mixed trends on a global scale. Although the total value of AML-related penalties worldwide dropped by 30% to $4.6 billion (from $6.5 billion in 2023), banks faced a 522% increase in fines, amounting to $3.65 billion. Penalties specifically tied to transaction monitoring breaches surged by 100% year-over-year to $3.3 billion.

Beyond AML, Fenergo’s research also points to growing enforcement actions related to environmental, social, and governance (ESG) practices. Global ESG-related fines nearly doubled, reaching $37.7 million in 2024, while in the United States, these fines rose by 13%, totalling $21.5 million.

Reflecting on these developments, Rory Doyle, Director of Regulatory Affairs at Fenergo, notes, “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 from 2024 global regulatory fines include:

  • Banks accounted for 80% of all fines, totalling $3.65 billion. TD Bank became the largest U.S. institution to plead guilty to Bank Secrecy Act (BSA) violations.
  • Digital asset platforms were fined $762.9 million.
  • Payments firms faced $54.8 million in penalties.
  • Buy-side firms received $52.85 million in fines.
  • Private banks were fined $48.2 million.

Doyle emphasizes the importance of proactive measures and technology adoption: : “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.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Sponsored by FundGuard: NAV Resilience Under DORA, A Year of Lessons Learned

The EU’s Digital Operational Resilience Act (DORA) came into force a year ago, and is reshaping how asset managers, asset owners and fund service providers think about operational risk. While DORA’s focus is squarely on ICT resilience and third-party dependencies, its implications extend deep into core operational processes that are critical to market integrity, investor...

BLOG

SEC’s 2026 Examination Priorities – 10 Notable Changes

The U.S. Securities and Exchange Commission (SEC) has released its Examination Priorities for 2026, and while many supervisory themes continue from 2025, the tone and structure of the new document reflect a decisive pivot. After years of rapid organisational expansion and broadening remit, the Division of Examinations is now emphasising consistency, prioritisation and the effective...

EVENT

Data Management Summit London

Now in its 16th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

FRTB Special Report

FRTB is one of the most sweeping and transformative pieces of regulation to hit the financial markets in the last two decades. With the deadline confirmed as January 2022, this Special Report provides a detailed insight into exactly what the data requirements are for FRTB in its latest (and final) incarnation, and explores what needs to be done in order to meet these needs on a cost-effective and company-wide basis.