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: Best Practice for trade surveillance

Markets in Financial Instruments Directive II (MiFID II), Market Abuse Regulation (MAR), Dodd-Frank and other regulations underline the need for effective and timely trade surveillance to counter market abuse. The webinar will discuss regulatory requirements for trade surveillance, best practice implementation, technology solutions and the benefits of getting market abuse compliance right. Listen to the...

BLOG

ThetaRay Extends Agentic AI into AML Investigations with Ray

As regulatory expectations around anti-money-laundering (AML) effectiveness continue to rise, many financial institutions are finding that the greatest operational pressure now sits in investigations rather than detection. While transaction monitoring models have advanced, the downstream work of reviewing alerts, assembling evidence and documenting decisions remains labour-intensive and difficult to standardise. ThetaRay is addressing this challenge...

EVENT

RegTech Summit London

Now in its 9th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Putting the LEI into Practice

Hundreds of thousands of pre-Legal Entity Identifiers (LEIs) have been issued by pre-Local Operating Units (LOUs) in the Global LEI System (GLEIS), and the standard entity identifier has been mandated for use by regulators in both the US and Europe. As more pre-LEIs are issued ahead of the establishment of the global systems’ Central Operating...