In 2021, despite the hindered regulatory and supervisory activity, financial institutions and individuals received $5.4 billion in financial penalties.
Regulators in North America, Asia Pacific and Europe issued significantly fewer fines in 2021 than the previous year, with just under 160 fines to financial institutions issued in 2021 compared to 760 fines in 2020.
Although Latin America bucked the downward trend with a steep rise in activity in Mexico which issued 429 fines to financial institutions at $6.7 million. The total combined value of penalties issued during 2021 was almost half that of 2020, which saw a record-breaking $10.6 billion imposed.
In this report, Fenergo examines the trends driving global enforcement actions in 2021 and asks whether the significant reduction is a result of hindered regulatory activity or a sign of improved compliance. We also look at AML reform efforts and compliance trends to consider what 2022 holds for the financial services industry.