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

A-Team Insight Blogs

Global AML Fines Quadruple in 2019, Could Break Records

Subscribe to our newsletter

New analysis from KYC solutions provider Encompass Corporation has found that a total of $8.07 billion of anti-money laundering (AML) fines were imposed globally between January 1 to August 31 this year – approximately 4.3 times higher than the $1.87 billion handed out over the same period in 2018.

Over the four months May to August 2019, 20 AML penalties were handed down totalling over $352.5 million, compared to four fines totalling $707 million over the same period last year. Notably, penalties were also handed down by a diverse array of regulators across multiple jurisdictions beyond the USA and UK: including Latvia, Norway, India and the Netherlands – with the largest fine originating from Belgium.

“As 2019 runs on, we have seen yet another fine in the hundreds of millions, and we expect to see more large penalties over the remainder of the year. As we have noted previously, multi-million dollar fines are commonplace these days, as evidenced by the fact that seven of the 20 penalties given out from May to August were $1 million or higher,” notes Wayne Johnson, Co-Founder and CEO of Encompass Corporation.

“In the year to date, around two-thirds of AML penalties were given to banks, but approximately a sixth were imposed on companies in the gambling/gaming and cryptocurrency sectors – highlighting the increasing attention these industries are getting as channels for money laundering. We expect to see this shift to non-financial services businesses continue in the future.”

Given the current pace, 2019 has every chance of breaking the 2014 record for the highest value of AML fines given out in a year.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Driving business value from the LEI

The Legal Entity Identifier (LEI) has become a viable standard to help financial institutions identify business entities that are party to financial transactions and fulfil regulatory obligations for entity data. Linked to third-party, corporate hierarchy and beneficial ownership data, the potential of the LEI extends to meet not only regulatory requirements, but also the need...

BLOG

Financial Crime is a Decision-Speed Problem: Rethinking AI in AML and Compliance Controls

Financial crime compliance is often described as a resourcing challenge. Firms speak of analyst backlogs, alert volumes and the rising cost of surveillance and screening. Kieran Holland, Solutions Engineering Team Leader at Innovative Systems’ FinScan, argues that the underlying constraint has shifted. Financial crime has become a decision-speed problem. “The fight against financial crime is...

EVENT

AI in Capital Markets Summit London

Now in its 3rd year, the AI in Capital Markets Summit returns with a focus on the practicalities of onboarding AI enterprise wide for business value creation. Whilst AI offers huge potential to revolutionise capital markets operations many are struggling to move beyond pilot phase to generate substantial value from AI.

GUIDE

Hosted/Managed Services

The on-site data management model is broken. Resources have been squeezed to breaking point. The industry needs a new operating model if it is truly to do more with less. Can hosted/managed services provide the answer? Can the marketplace really create and maintain a utility-based approach to reference data management? And if so, how can...