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Global financial regulatory penalties fall by 18% in 2025
13 January 2026 US, UK and Singapore
Image: alexkich/stock.adobe.com
Fenergo, has released its annual findings on global financial institution enforcement actions, which reveal that the value of penalties imposed on firms declined year-on-year by 18 percent but reflects significant regional divergence.
Penalties for failing to comply with anti-money laundering (AML), know your customer (KYC), sanctions and customer due diligence (CDD) regulations totalled US$3.8 billion in 2025, down from US$4.6 billion in 2024 and US$6.6 billion in 2023.
While global fines declined for a second consecutive year, enforcement activity diverged sharply by region.
Fines issued by North American regulators fell by 58 percent, while EMEA and APAC penalties rose by 767 percent and 44 percent respectively, driven largely by the conclusion of long-running investigations and intensified scrutiny in specific sectors.
The single largest penalty of 2025, at US$985 million, was issued to a Swiss bank by French authorities in relation to AML failings.
As a result, France became the second-largest enforcer globally (US$1.11 billion) behind the US (US$1.676 billion), a dramatic increase from 2024.
Despite regulatory progress, digital assets firms remain overrepresented in major AML fines, reflecting the sector’s ongoing maturity challenges.
Almost one quarter of the top ten highest-value fines involve digital asset firms as rapid growth in transaction volumes and stablecoin usage has outpaced compliance capabilities.
While progress in this sector is evident, compliance maturity still lags behind risk exposure, especially with the growing expectation that digital asset firms adopt bank-grade AML controls.
Rory Doyle, head of financial crime policy at Fenergo, says: “In Singapore, enforcement action has intensified following a major money laundering scandal.
"In response, the Monetary Authority of Singapore has tightened its focus on private banking and cross-border wealth flows, with a clear aim of positioning the city-state as a global leader in source of wealth and source of funds enforcement.”
“This reflects MAS’s broader ambition to strengthen trust in Singapore’s financial system and reinforce its position as a global wealth management hub while also making it clear that robust due diligence and ongoing monitoring is non-negotiable.”
“As enforcement rebounds in key jurisdictions, firms that fail to modernise their financial crime ecosystem will remain exposed.
"Those that prioritise investment in leading-edge technology with AI at the forefront, will be able to demonstrate robust AML controls and regulatory alignment while being far better positioned for the next wave of scrutiny.”
Penalties for failing to comply with anti-money laundering (AML), know your customer (KYC), sanctions and customer due diligence (CDD) regulations totalled US$3.8 billion in 2025, down from US$4.6 billion in 2024 and US$6.6 billion in 2023.
While global fines declined for a second consecutive year, enforcement activity diverged sharply by region.
Fines issued by North American regulators fell by 58 percent, while EMEA and APAC penalties rose by 767 percent and 44 percent respectively, driven largely by the conclusion of long-running investigations and intensified scrutiny in specific sectors.
The single largest penalty of 2025, at US$985 million, was issued to a Swiss bank by French authorities in relation to AML failings.
As a result, France became the second-largest enforcer globally (US$1.11 billion) behind the US (US$1.676 billion), a dramatic increase from 2024.
Despite regulatory progress, digital assets firms remain overrepresented in major AML fines, reflecting the sector’s ongoing maturity challenges.
Almost one quarter of the top ten highest-value fines involve digital asset firms as rapid growth in transaction volumes and stablecoin usage has outpaced compliance capabilities.
While progress in this sector is evident, compliance maturity still lags behind risk exposure, especially with the growing expectation that digital asset firms adopt bank-grade AML controls.
Rory Doyle, head of financial crime policy at Fenergo, says: “In Singapore, enforcement action has intensified following a major money laundering scandal.
"In response, the Monetary Authority of Singapore has tightened its focus on private banking and cross-border wealth flows, with a clear aim of positioning the city-state as a global leader in source of wealth and source of funds enforcement.”
“This reflects MAS’s broader ambition to strengthen trust in Singapore’s financial system and reinforce its position as a global wealth management hub while also making it clear that robust due diligence and ongoing monitoring is non-negotiable.”
“As enforcement rebounds in key jurisdictions, firms that fail to modernise their financial crime ecosystem will remain exposed.
"Those that prioritise investment in leading-edge technology with AI at the forefront, will be able to demonstrate robust AML controls and regulatory alignment while being far better positioned for the next wave of scrutiny.”
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