The Duff & Phelps Compliance and Regulatory Consulting practice recently launched its seventh annual Global Enforcement Review providing insights into enforcement trends focused on the financial services industry. Our regulatory experience, combined with an in-depth analysis of enforcement penalties issued by key regulators globally, helps firms comply with various regulatory regimes across multiple jurisdictions.
In compiling this research and analysis, we have leveraged Corlytics’ extensive RiskFusion Global Enforcement database for January 1, 2013 to June 30, 2020.
Key findings include:
- Fines for anti-money laundering (AML) failings globally totaled $706 million (mn) in the first half of 2020.
- Globally anti-money laundering fines have increased in 2020 since 2019’s full-year total of $444 mn.
- Global fines have decreased since previous years (2018: $3,297 mn, 2017: $2,136 mn) and are still lower than the yearly average between 2015–2018 of $1,871 mn.
- While the AML fine values between 2018 and 2019 noticed a significant monetary decline, there was only a 14% decrease in the number of noteworthy cases.
- Of the global fines in 2020, the U.S. represented only 12% of the total value of AML fines, a much smaller percentage than previous years, accounting for–45% in 2019, 58% in 2018, 72% in 2017 and a staggering 97% in 2016.
- Regulators have consistently identified four key AML failings between 2015-2020:
- Customer due diligence (115 significant cases)
- AML management (109 cases)
- Suspicious activity monitoring (82 cases)
- Compliance monitoring and oversight (62 cases)
Duff & Phelps seventh annual Global Enforcement Review can be accessed here.
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