Banks and cryptocurrency industries faced intensified oversight due to alleged gaps in Anti-Money Laundering measures.
In the first half of 2025, financial institutions worldwide have faced a significant surge in regulatory fines, with a total of $1.23 billion issued globally, marking a 417% increase from the same period in 2024. This rise in penalties is particularly noticeable in North America, where regulators issued over $1.06 billion in fines, a 565% surge from the same period in 2024.
According to Rory Doyle, Head of Financial Crime Policy at Fenergo, this trend serves as a stark warning to financial institutions, particularly those operating in the digital assets sector, about the potential for heavy fines for AML shortcomings. Doyle also highlighted a global trend of increased regulatory scrutiny around sanctions compliance, attributing it to geopolitical tensions and evolving sanctions regimes.
The value of penalties issued by regulators in EMEA also saw an uptick, with watchdogs issuing $168.2 million worth of fines, up 147% from $68 million in the same period last year. However, the value of penalties issued by regulators in APAC fell, with authorities issuing a total of $3.4 million of penalties in H1 2025, down from $10.7 million in H1 2024.
One of the key drivers behind the increase in fines is the increased focus on digital assets firms. The US Department of Justice (DOJ) issued the most significant penalty of over $504 million to cryptocurrency exchange OKX for failing to maintain an effective AML program. Another cryptocurrency exchange, BitMEX, was fined more than $100 million by the DOJ for similar AML failings.
In the USA, JPMorgan Chase received the highest penalty for AML violations, amounting to approximately $300 million. Approximately 139 financial penalties were levied in H1 2025, relating to AML, KYC, sanctions, SARs, and transaction monitoring violations.
Doyle emphasized the importance of integrating smarter financial crime technology with AI to increase accuracy and strengthen due diligence processes, especially in the context of complex markets and a shortage of skilled financial crime professionals. This move could potentially help financial institutions navigate the increasingly complex regulatory landscape and mitigate the risk of hefty fines.
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