Global regulators are imposing new and strengthened regulatory compliance requirements on banks. However, even though banking processes have become more efficient and transparent than ever before, reducing compliance costs remains one of the most important priorities.
Among the most expensive elements of compliance are sanctioned monitoring, KYC remediation, anti-money laundering (AML) measures, and transaction monitoring. In addition to fines, compliance costs also include regulatory penalties.
According to news media, here are some of the major AML related fines in 2020:
Major AML Fines in October
Goldman Sachs was reportedly fined by regulators for USD 3 billion over its involvement in the 1MDB corruption scandal.
Major AML Fines in September
Australian bank Westpac was fined for a record $1.3 billion after being charged by Australian financial intelligence agency Austrac. The charges include violation of AML and CTF rules, failure to implement effective transaction monitoring programs, and failure to implement advanced customer due diligence on suspicious transactions.
Major AML Fines in July
Two banks and three financial corporations were fined by Sri Lanka’s Financial Intelligence Unit for AML regulation violations, including “violations of Policy Exposed Persons (PEPs) and sanction screening and implementation of customer due diligence procedures.”
The Financial and Capital Market Commission Lithuania fined Signet Bank of Latvia more than EUR 900,000 for AML related violations, such as insufficient internal control system, customer-based risks and violations and deficiencies regarding risk management.
The New York State Department of Financial Services penalized Deutsche Bank AG for more than USD 200 million over non-compliant of AML requirements.
Major AML Fines in June
Swedish bank SEB was fined by Swedish Financial Supervisory Authority for over 1 Billion SEK due to the bank’s inadequate AML controls.
UK Financial Conduct Authority reportedly fined the Commerzbank’s London branch for £37.8 million over violations of AML controls.
HK Securities and Futures Commission reportedly fined Guotai Junan Securities (Hong Kong) Limited for $25.2 million over AML violations.
Sources:
2020’s largest AML fines show a troubling common thread | Arachnys
https://sanctionscanner.com/blog/anti-money-laundering-aml-fines-in-2020-235
