2023 was a historic year for financial institution (FI) enforcement actions which soared to $6.6 billion globally.
Compared with 2022, Fenergo research highlighted a 57% increase in global enforcement action values issued to FIs, but the market trends driving regulatory penalties are what made the year so remarkable.
For the first time on record, regulators issued more fines to digital payments firms and crypto firms than to the traditional financial sector for compliance breaches. In 2023, ‘traditional’ financial groups account for just 10% ($835 million) of penalties issued for violations of Know Your Customer (KYC), Anti-money Laundering (AML), customer due diligence (CDD), Sanctions, and Environmental, Social and Governance (ESG) regulations globally.
One thing is clear: in 2023, the regulatory focus shifted and is going to continue moving. The rules for traditional and digital financial services are undergoing drastic evolution across every major jurisdiction, as regulators and governments race to respond to emerging financial crime risks and an increasingly digitalized financial industry.
In this report, we analyze the record-breaking global enforcement actions that came out of 2023, and the factors driving year-on-year changes in the types, volumes, and severity of breaches recorded across the different regulatory jurisdictions.
Download the report to gain insight into:
$6.6b
Global
$5.1b
North America
$1.4b
APAC
$75m
EMEA
regulators issued a total of $5.58 million in enforcement actions to financial institutions in 2022, down 99% from 2021
saw a 66% decrease in the value of financial penalties, from $3.4 billion in 2021 to just over $1.16 billion in 2022
had a sharp rise in enforcement actions during the 2022 calendar year, with values up 151% from 2021
regulators in Latin America fined financial institutions $2.5 billion, down 82% from 2021
approximately 12 individuals were fined $31.2 million for their role in AML-related compliance breaches
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