Global AML Roundup: 2024 in Review
It's been a whirlwind year in financial crime, with major enforcement actions taken against financial institutions for Anti-Money Laundering (AML) failures, significant corruption scandals and notable sanctions activity.
Global Enforcement Trends
Regulators across the globe cracked down on AML failures, with major fines being issued to financial institutions.
UK
The UK's Financial Conduct Authority (FCA) issued a number of significant fines due to AML failures.
- Starling Bank
In May, Starling Bank was fined £28.96 million for deficiencies in its financial sanctions screening and for failings in the management of high-risk accounts. - Metro Bank
Another challenger bank that received a major fine from the FCA was Metro Bank, which received a penalty of £16.7 million in November for failing to adequately monitor over 60 million transactions worth over £51 billion. - Coinbase
In August, the FCA imposed its first enforcement action against a crypto platform, fining Coinbase £3.5 million for AML violations related to breaching a restriction on onboarding high-risk customers.
It was also a busy year across the continent, with significant fines being handed out by European regulators.
- Klarna
In December, Sweden's Financial Supervisory Authority fined Klarna SEK 500 million (around £35 million) for AML failings, citing deficiencies in general risk assessments. - Commerzbank
Meanwhile, Germany's Financial Supervisory Authority BaFin fined Commerzbank €1.45 million in April for failing to update customer information on time and insufficient due diligence measures. - Nordea Bank
In August, Nordea Bank agreed to a fine of €31.5 million to U.S. authorities for deficiencies in legacy AML processes.
The largest AML fine of the year was handed out in the U.S. to TD Bank and there were also other significant cases.
- TD Bank
In October, U.S. regulators imposed a record-breaking fine of over $3 billion on TD Bank for long-standing AML failings, including allowing high-risk transactions to go unchecked for years. - Lake Elsinore Hotel & Casino
Meanwhile, in the growing gambling sector, FinCEN fined a California casino $900,000 in May for prolonged failures to implement effective AML programs and report suspicious activities. - MGM Grand Casino
In July, MGM Grand Casino was fined $7.45 million for failing to comply with Bank Secrecy Act obligations, primarily related to suspicious sports betting transactions.
- DBS Bank
In July 2024, the Hong Kong Monetary Authority fined DBS Bank HK$10 million for breaches of AML/CTF regulations, including weaknesses in transaction monitoring. - Swiss-Asia
In September, the Monetary Authority of Singapore fined Swiss-Asia S$1 million for AML lapses, including failures in customer due diligence and transaction monitoring.
Australia - SkyCity Entertainment Group
In November 2024, Australian regulator AUSTRAC and gambling company SkyCity agreed to a $67 AUD million penalty for systemic failings in their AML and counter-terrorism compliance programs, particularly in high-value customer transactions.
Changes to FATF grey list
This year saw significant movement in the Financial Action Taskforce (FATF) grey list, with several countries being designated or removed. This list identifies jurisdictions under increased monitoring for strategic deficiencies in their AML and CFT frameworks, requiring them to implement action plans to address these weaknesses.
- February: Kenya, Namibia
- June: Monaco, Venezuela
- October: Algeria, Angola, Côte d'Ivoire, Lebanon
- February: Barbados, Gibraltar, Uganda, United Arab Emirates
- June: Jamaica, Türkiye
- October: Senegal
New AML/CTF Regime in Australia and New Moneyval Report for Jersey
The Australian government introduced amendments to its AML/CTF regime and extended obligations to "Tranche 2 entities", such as lawyers, lawyers, accountants, trust and company service providers, real estate professionals and dealers in precious metals and stones. Meanwhile in July, Jersey received a clean bill of health in its Fifth Round Mutual Evaluation Report, highlighting its strong AML/CFT framework.
In July, Jersey received a clean bill of health in its Fifth Round Mutual Evaluation Report, highlighting its strong AML/CFT framework.
Sanctions Updates and Corruption Trials
This year saw an intensification of global sanctions, mainly targeting Iran, Russia, and their proxies, as geopolitical tensions drove compliance pressures globally. With escalating geopolitical tensions, organisations must maintain robust sanctions screening processes that can swiftly adapt to frequent regulatory changes.
Additionally, significant corruption trials marked 2024, including the trial and conviction of Singapore's former Transport Minister. In Europe, a shocking scandal emerged when millions in illicit cartel cash were allegedly discovered in the home of Spain's anti-fraud police chief. The incident served as a sobering reminder that no institution or government is immune to the corrosive influence of organised crime.
KYC360 Highlights
It's been a landmark year for KYC360 as we rebranded from RiskScreen to KYC360. Today, our award-winning platform is trusted by over 1,400 organisations across 100 jurisdictions for onboarding, screening and perpetual KYC. We're excited to share even bigger developments coming in 2025.https://kyc360.com/knowledge-hub/resources/riskscreen-rebrands-as-kyc360
As part of our Comply and Outperform webinar series, we brought together industry leaders to educate and empower financial crime professionals. Esteemed guest speakers included Neil Martin, former Head of Race Strategy at Ferrari F1; Neil Swift, Partner in Business Crime at Peters & Peters; Nick Lewis, Managing Director of the High-Risk Client Unit at Standard Bank; and Heather Adams, Managing Director and Global Head of Risk & Compliance at Accenture. Full webinar replays are available to watch on-demand.
We also hosted our well-attended Annual KYC360 Forum, a pivotal event designed to help financial crime professionals Comply and Outperform. The forum brought together industry thought leaders and subject matter experts to discuss key topics, including the future of KYC/AML in Jersey, the role of MONEYVAL, RegTech as a competitive differentiator, developments in AML legislation and regulation, and the impact of U.S. sanctions and whistleblowing legislation on global businesses. You can now watch the full recordings of the sessions on-demand.
Conclusion
This year has underscored the increasing pressure on compliance teams, proving that financial institutions can no longer view compliance as a mere tick-box exercise. Automated regulatory technology solutions are essential for scaling operations efficiently while maintaining robust compliance and staying ahead of evolving threats.
Our Customer Lifecycle Management SaaS Platform takes care of all aspects, from creating the right first impression with rapid risk-based onboarding, through to award winning screening and KYC refresh that enable your business to:
- Realise massive operational efficiencies
- Achieve rapid ROI through the speedy deployment of our no code solutions
- Master complexity with solutions that evolve as regulations change
All at the same time as delivering even higher levels of compliance assurance.
