The biggest AML fines in 2024

Regulatory Crackdown Intensifies?

Throughout 2024, global financial regulators continued their aggressive stance on anti-money laundering (AML) enforcement. Institutions failing to comply with AML and countering the financing of terrorism (CFT) regulations faced record-breaking fines, reinforcing the urgency of strong compliance programs.?

This article explores the most significant AML fines imposed in 2024, the compliance failings that led to them, and key takeaways for businesses aiming to mitigate regulatory risks.?

The sectors hit hardest by AML Fines in 2024?

Regulatory actions in 2024 targeted multiple industries, with banking, cryptocurrency, gambling, payments, and trading firms facing the heaviest penalties:?

• Banking – $3.2 billion+ in fines?

• Cryptocurrency – $86 million+ in fines?

• Gambling – $69 million+ in fines?

• Payments – $46 million+ in fines?

• Trading and brokerage – $10 million+ in fines?

1. Banking: $3.2 Billion+ in Fines?

The banking sector saw a surge in AML penalties, with large institutions and challenger banks both facing regulatory scrutiny. Key failures included:?

• Ignoring known risks – Banks failed to update compliance programs to address high-risk jurisdictions.?

• Delayed or missing SAR filings – Criminal organizations were able to move billions undetected.?

• Weak correspondent banking oversight – Lack of due diligence in correspondent banking relationships led to significant fines.?

In the UK, two challenger banks were fined nearly $60 million by the Financial Conduct Authority (FCA) for ineffective sanctions screening and weak transaction monitoring.?

2. Cryptocurrency: $86 Million+ in Fines?

Despite a decrease in fines from 2023, crypto firms continued to face regulatory actions:?

• Transaction monitoring failures – One company failed to detect $9 billion in suspicious transactions.?

• Sanctions breaches – Firms onboarded high-risk customers without proper due diligence.?

• Repeated offenses – A major crypto exchange, already fined billions in 2023, received additional penalties for regulatory breaches.?

3. Gambling: $69 Million+ in Fines?

Regulators in Australia, the UK, and the US targeted gambling operators for poor AML controls:?

• Weak Know Your Customer (KYC) processes – Fines were imposed for failing to conduct effective due diligence.?

• Lack of Source of Funds (SOF) checks – High-risk customers were able to obscure illicit funds.?

• Failure to report suspicious transactions – Casinos were used for illegal betting and money laundering.?

4. Payments: $46 Million+ in Fines?

A rising number of fintech firms faced AML penalties in 2024:?

• Inadequate risk assessments – Firms failed to consider how their services could be exploited for money laundering.?

• Weak customer screening – Lapses in verifying identities led to regulatory action.?

5. Trading and Brokerage: $10 Million+ in Fines?

Although fines in this sector were lower than in banking, regulatory scrutiny increased:?

• Late or missing SARs – Firms failed to report suspicious transactions on time.?

• Lack of fraud prevention measures – Criminals used stolen identities to open trading accounts.?

• Weak AML policies – Regulators cited firms for inadequate monitoring of financial transactions.?

Common AML violations that led to fines?

Across industries, firms faced penalties for similar failings:?

• Sanctions violations – Businesses engaged in transactions with sanctioned entities.?

• Poor customer due diligence (CDD) – Failure to apply enhanced due diligence (EDD) on high-risk clients.?

• Weak transaction monitoring – Inadequate systems failed to flag suspicious activity.?

• Improper SAR filing – Late or misleading suspicious activity reports resulted in regulatory action.?

Key AML regulatory changes in 2024?

Staying ahead of compliance requirements is critical. Key regulatory updates in 2024 included:?

• European Union – Introduction of a new AML regulatory framework and the launch of the Anti-Money Laundering Authority (AMLA).?

• United States – FinCEN expanded AML obligations for real estate and investment firms.?

• United Kingdom – Implementation of the Economic Crime and Corporate Transparency Act (ECCTA).?

• Australia – New AML/CTF regulations extending oversight to designated non-financial businesses and professions (DNFBPs).?

• Singapore – Strengthened AML laws with enhanced regulatory obligations for the gambling sector.?

Upcoming AML regulations in 2025?

Looking ahead, businesses must prepare for further regulatory shifts:?

• United States – Potential Supreme Court ruling on beneficial ownership reporting under the Corporate Transparency Act (CTA).?

• European Union – AMLA to begin operations, increasing oversight of high-risk firms.?

• Australia – Rollout of a new confirmation-of-payee system to prevent fraud.?

• Singapore – Introduction of new electronic deferred payment systems to enhance AML measures in financial transactions.?

How businesses can avoid AML fines in 2025?

Regulatory fines not only lead to financial losses but also damage reputations. To strengthen AML compliance and reduce risks, firms should:?

• Enhance customer screening – Use advanced KYC solutions to streamline onboarding and exceed regulatory expectations.?

• Implement real-time monitoring – Utilize AI-driven transaction monitoring to detect and prevent suspicious activities.?

• Ensure up-to-date sanctions screening – Regularly update watchlists, politically exposed persons (PEP) data, and adverse media reports.?

• Automate SAR filing – Leverage automation tools to improve accuracy and timeliness in suspicious activity reporting.?

• Invest in employee training – Regular AML training for compliance teams ensures they stay ahead of regulatory changes and enforcement trends.?

Final thoughts?

The surge in AML fines in 2024 underscores the cost of non-compliance. As regulatory scrutiny intensifies, businesses must proactively enhance their AML frameworks. Investing in robust compliance measures prevents financial penalties and safeguards brand reputation and operational integrity. Firms that take AML compliance seriously will be better positioned to navigate evolving regulations and avoid costly enforcement actions in 2025 and beyond.?

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Author (REN) Renjith Chief Executive - ReTRRAC Global