The company’s findings show that by the end of July 2020, penalties have totalled USD 5.6 billion for non-compliance with AML, KYC, and sanctions regulations. Fines issued by APAC regulators related to AML and KYC violations saw a dramatic increase from USD 3.5 million to almost USD 4 billion.
Financial institutions in the US, Sweden, Germany, and Israel were hit hardest, while regulators in Malaysia issued two of the highest value enforcement actions in 2020 thus far. Three Swedish banks were fined USD 536 million collectively for lacking sufficient AML governance and controls in the Baltic states. US authorities including the DoJ, the Federal Reserve, and the New York State Department of Financial Services (NYDFS) levied fines of over USD 900 million against an Israeli bank for tax evasion and money laundering after discovering the bank had concealed more than USD 7.6 billion in Swiss and Israeli bank accounts. The Israeli bank was also fined by the DoJ for its role in a money laundering conspiracy surrounding the Fédération Internationale de Football Association (FIFA).
Regulators operating in APAC, including China, Hong Kong, Singapore, Malaysia, Taiwan, India, and Pakistan, issued fines of almost USD 4 billion. Countries where fines have increased substantially include Pakistan (845% rise compared to 2019 mid-year), Hong Kong (+223%), and Taiwan (+116%) and are a result of increased enforcement actions in response to recent Financial Action Taskforce (FATF) criticisms and concerns highlighted in mutual evaluation reports.
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