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AML Enforcement Actions Surge in 2023

A Global Data Research Report on Regulatory Compliance

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2023 was a historic year for financial institution (FI) enforcement actions which soared to $6.6 billion globally.

Compared with 2022, Fenergo research highlighted a 57% increase in global enforcement action values issued to FIs, but the market trends driving regulatory penalties are what made the year so remarkable.

For the first time on record, regulators issued more fines to digital payments firms and crypto firms than to the traditional financial sector for compliance breaches. In 2023, ‘traditional’ financial groups account for just 10% ($835 million) of penalties issued for violations of Know Your Customer (KYC), Anti-money Laundering (AML), customer due diligence (CDD), Sanctions, and Environmental, Social and Governance (ESG) regulations globally.

One thing is clear: in 2023, the regulatory focus shifted and is going to continue moving. The rules for traditional and digital financial services are undergoing drastic evolution across every major jurisdiction, as regulators and governments race to respond to emerging financial crime risks and an increasingly digitalized financial industry.

In this report, we analyze the record-breaking global enforcement actions that came out of 2023, and the factors driving year-on-year changes in the types, volumes, and severity of breaches recorded across the different regulatory jurisdictions.

Download the report to gain insight into:

  • Which regulatory regions were the most punitive on AML breaches in 2023
  • The most prevalent shortcomings causing FIs to face regulatory scrutiny
  • How compliance frameworks must change to meet evolving standards in 2024