AML/CFT fines see upward trend in 2020

Many prominent institutions have been fined for not following the AML and KYC regulations in the year 2020, leading to an overall rise on penalties of 26% YOY.

$10.4 billion has been paid in total by financial institutions for non-complaince with AML, data privacy, KYC, and EU regulations.

In terms of total fines issued we have seen a 141% increase.

Goldman Sachs were hit hardest with a penalty of $6.8 billion relating to the 1MDB scandal.

The Office of Financial Sanctions Implementation (OFSI) fined Standard Chartered (UK) for violating Russia’s sanctions, in 2020. The penalty was of $25.4 million, being the largest ever penalty imposed by the regulators up until MT global was fined last week.

Most fines were received by financial institutions based in the USA totalling $7.489 billion. Goldman Sachs hoever was a huge contributer to this total making up 91% of the figure.

This seeems to be a global trend, with regulators increasinglt weilding teh power to financially punish firms for lax AML/CFT practices. Hopefully this will lead to tighter controls and greater supervision in 2021.

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