The High Cost of Non-Compliance: Key AML/CFT Penalties in 2024 and Their Global Implications
The High Cost of Non-Compliance: Key AML/CFT Penalties in 2024 and Their Global Implications “If you think that compliance is expensive: try non-compliance”. This famous quote from former US Deputy Attorney General Paul McNulty would be a perfect introduction to the change in the landscape of fines and penalties for Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) non-compliance, reflecting a global trend towards tougher enforcement. 2024 witnessed a resurgence of significant fines issued for AML/CFT non-compliance across various sectors globally and here are some notable ones: Binance: Binance faced one of the largest fines, where a U.S. court approved a $2.7 billion penalty for violations related to anti-money laundering and sanctions laws. The fine highlighted serious compliance failings, including failure to report suspicious transactions and links to illegal activities Crown Resorts: This Australian casino operator was fined AUD 450 million ($300 million) for failing to properly assess and manage high-risk clients at its casinos. This fine was part of a broader crackdown on money laundering in the gambling industry TD Bank: In the U.S., TD Bank received a record-breaking fine of over $3 billion due to long-standing deficiencies in its AML practices, including the oversight of high-risk transactions William Hill: In the UK, William Hill and its sister brand Mr. Green was fined £19.2 million for social responsibility and AML failures, which included allowing significant transactions without proper due diligence during the lockdown periods Guaranty Trust Bank UK Ltd: This bank was fined £7.6 million for major deficiencies in its AML processes, including inadequate due diligence on high-risk clients and failing to investigate the origins of clients’ wealth These cases underscore the ongoing strict regulatory stance on AML/CFT compliance, where failures lead to substantial financial penalties. The fines serve as a stark reminder of the importance of robust AML controls and the potential consequences of non-compliance. In a hindsight, the scope of tackling non-compliance has been broadened, and authorities are being empowered in that direction.
