Historical high in regulatory fines - $6.6 billion globally.
27/06/2024
2023 was a historic year for financial institution (FI) enforcement actions, soaring to $6.6 billion globally.
Compared with 2022, Fenergo's 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 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, there was a significant shift in the regulatory focus, and this trend is expected to continue.
The rules for traditional and digital financial services are evolving drastically across every primary jurisdiction as regulators and governments race to respond to emerging financial crime risks and an increasingly digitalised financial industry.
In this report, FENERGO delve into the record-breaking global enforcement actions that emerged in 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
Please click here for fines report
SOURCE
https://resources.fenergo.com/reports/aml-enforcement-actions-surge-in-2023#main-content
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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.