Understanding the Biggest AML Fines in 2024

In 2024, financial institutions faced some of the most substantial AML (Anti-Money Laundering) fines in recent years, reflecting heightened regulatory scrutiny and a renewed global emphasis on compliance. These penalties underscore the serious consequences of weak internal controls and failure to detect suspicious activities.

For compliance officers, risk managers, and financial leaders, understanding these enforcement actions isn’t just about the dollar amounts. It’s about recognizing patterns, identifying operational gaps, and proactively strengthening AML programs in a rapidly evolving regulatory landscape.

This blog breaks down the major AML fines of 2024, explores the key violations behind them, and offers actionable insights to help organizations build more resilient compliance frameworks.

What is AML?

Anti-money laundering refers to a set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. AML frameworks require financial institutions and other regulated entities to monitor transactions, detect suspicious activities, and report them to relevant authorities. Compliance with AML regulations helps safeguard the financial system from being exploited for illicit activities such as fraud, corruption, and terrorist financing.

Now that we’ve covered what AML involves and its role in preventing financial crime, it’s important to analyze the biggest AML fines in recent years and understand the compliance gaps that led to these penalties.

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Biggest AML Fines to Date

While financial institutions are obligated to maintain strong AML and Know Your Customer (KYC) frameworks, history shows that lapses in compliance can be costly; not just financially, but reputationally too. Some of the biggest fines in recent years reveal just how seriously regulators are cracking down on weak controls and risky business practices.

Binance received one of the most significant penalties in history when U.S. authorities imposed a $4.3 billion fine on the cryptocurrency giant. Investigations found that Binance had failed to report over 100,000 suspicious transactions, including those potentially linked to sanctioned terrorist organizations. The lack of internal oversight and disregard for federal AML laws made this a landmark case for the crypto sector.

Swiss bank UBS was fined $4.2 billion in 2019 by regulators in Switzerland, the U.S., and France. The penalty came after investigations found the bank helped French clients hide money to evade taxes and failed to maintain proper AML checks. UBS reportedly held private events to attract wealthy clients and offered ways to keep their funds hidden in Swiss accounts.

TD Bank faced a $3 billion penalty in 2024, the largest ever for a depository institution in U.S. history. The fines, levied by the U.S. Department of Justice and the Financial Crimes Enforcement Network, resulted from systemic failures in TD Bank’s AML program, including bribery, corruption, and the facilitation of laundering over $670 million in criminal proceeds.

ING, a Dutch bank, paid $1.18 billion in 2018 for serious compliance failures. Authorities flagged weaknesses in its customer due diligence, transaction monitoring, and risk assessments. Several flagged transactions were tied to criminal activity, including bribery.

These historic cases set the stage for what would become an even more aggressive regulatory approach. In 2024, authorities around the world ramped up enforcement efforts, signaling that AML compliance is no longer optional; it’s essential.

AML Fines of 2024

​Regulatory bodies worldwide intensified their focus on anti-money laundering (AML) compliance in 2024, leading to substantial enforcement actions across various sectors. Financial institutions, cryptocurrency platforms, gambling operators, and payment providers faced heightened scrutiny, underscoring the critical need for robust AML frameworks.​

1. Banking Sector

The banking sector accounted for the largest share of AML fines in 2024, with over $3.1 billion in penalties. Both traditional banks and challenger banks faced enforcement actions for severe compliance failures.

• In October 2024, TD Bank agreed to a $3.1 billion settlement with U.S. authorities for violations of the Bank Secrecy Act (BSA). The bank admitted to deficiencies in its AML program, including failures in monitoring suspicious activities and reporting, which allowed illicit transactions to proceed undetected.

2. Cryptocurrency Sector

Cryptocurrency platforms continued to attract regulatory attention:​

• Binance’s Settlement: Binance, the world’s largest cryptocurrency exchange, faced a $4.3 billion penalty for AML violations. The settlement highlighted the exchange’s failure to implement effective AML controls, allowing illicit funds to be processed through its platform.

3. Payments Sector

Payment providers also encountered regulatory scrutiny:​

• Brink’s Global Services Penalties: Brink’s Global Services USA agreed to a $42 million settlement over three years for multiple BSA violations. The enforcement action emphasises the importance of compliance with AML regulations in the payments industry.

Also Read: Banking Regulatory Compliance Management – Best Practices and Checklist

Key Compliance Failures Identified

Across these sectors, common compliance failures included:​

• Inadequate Transaction Monitoring: Failures in detecting and reporting suspicious activities due to deficient monitoring systems.​
• Weak Know Your Customer (KYC) Procedures: Onboarding clients without thorough identity verification, leaving institutions vulnerable to illicit activities.​
• Failure to Adhere to Sanctions Protocols: Allowing transactions with sanctioned entities due to insufficient screening processes.

What’s driving these enforcement actions? Let’s break down the key patterns behind AML failures.

Also Read: Maintaining Regulatory and Compliance Adherence as a Money Transmitter

Key Patterns and Recurring Issues in AML Failures

Recurring lapses in AML compliance indicate systemic flaws that expose industries to regulatory penalties and reputational damage. Below are the most common areas where businesses fell short.

Inadequate Transaction Monitoring Systems

Many industries relied on outdated or ineffective transaction monitoring systems that failed to detect evolving threats. As financial criminals adopt increasingly advanced techniques, static and poorly calibrated systems struggle to identify suspicious activity, leading to missed red flags and regulatory breaches.

Poor Customer Due Diligence (CDD) and Know Your Customer (KYC) Procedures

Weak CDD and KYC processes allowed high-risk clients to access services without sufficient scrutiny. Inadequate background checks and failure to identify politically exposed persons (PEPs) or other high-risk customers contributed to regulatory violations and increased exposure to financial crime.

Failure to Act on Red Flags

In several cases, industries failed to take appropriate action despite identifying suspicious transaction patterns. Delays in filing suspicious activity reports (SARs) or neglecting to investigate anomalies led to increased regulatory scrutiny and significant penalties.

Lack of Risk-Based Approach

Many sectors continued to rely on a one-size-fits-all approach to AML compliance, overlooking the need to tailor controls based on customer risk profiles and transaction behaviors. This lack of a risk-based strategy created blind spots, making it easier for financial crime to go undetected.

A risk-based approach is no longer a best practice—it’s a regulatory expectation. With RiskOps , compliance teams can move beyond checkbox compliance and implement controls aligned to real-world risk.

Inadequate Governance and Oversight

Weak governance structures and insufficient oversight were common issues, with senior management often failing to prioritize AML compliance. In many cases, Money Laundering Reporting Officers (MLROs) lacked the expertise or authority to enforce robust controls, leading to systemic failures.

Identifying recurring AML failures is only the first step. To prevent future breaches and minimize regulatory risks, industries must adopt a proactive approach to strengthen their AML compliance frameworks.

New AML Regulations to Watch in 2025

As financial crimes become more advanced, regulators are introducing stricter AML measures to close loopholes and improve compliance. In 2025, several major regulatory changes will reshape how organizations manage financial crime risks. This section highlights key upcoming regulations, including expanded penalties under the EU’s 6AMLD, stricter crypto compliance rules, and new guidelines for cross-border payments.

1. EU’s 6th AML Directive (6AMLD) – Expanded Scope and Stricter Penalties

The EU’s 6AMLD introduces tougher penalties and extends liability to senior management for AML breaches. It also broadens the definition of financial crimes, requiring organizations to enhance their compliance frameworks.

2. FATF’s New Beneficial Ownership Transparency Standards

The Financial Action Task Force (FATF) is introducing new measures to improve transparency around beneficial ownership. These standards will require more detailed reporting and stricter verification processes to prevent misuse of corporate structures.

3. Digital Asset AML Regulations – Stricter Rules for Crypto and DeFi

Regulators are tightening controls on digital assets, including cryptocurrencies and decentralized finance (DeFi) platforms. These rules aim to improve transaction monitoring and enforce KYC standards in the fast-growing sector.

4. Cross-Border Payments – New Guidelines to Reduce Money Laundering Risks

New guidelines will focus on strengthening AML controls in cross-border payments. They aim to improve transparency and reduce vulnerabilities that financial criminals can exploit.

5. AI-Powered AML Monitoring Systems Mandate

Regulators are encouraging the adoption of AI-powered AML monitoring systems to enhance the detection of suspicious activity. These systems will help organizations identify complex patterns and reduce false positives more effectively.

6. US FinCEN’s Proposed Changes to BSA/AML Regulations

The US Financial Crimes Enforcement Network (FinCEN) is proposing updates to the Bank Secrecy Act (BSA) and AML regulations. These changes aim to address emerging risks and improve compliance effectiveness across industries.

As regulations continue to tighten, it’s not enough to simply stay informed about upcoming changes. To effectively avoid AML penalties in 2025, businesses must take important steps to strengthen their compliance frameworks.

Also Read: Regulatory Compliance and Risk Management Software for Banks + Checklist.

Proactive Measures to Prevent AML Fines in 2025

As regulatory scrutiny intensifies and compliance requirements become more intricate, avoiding AML fines in 2025 demands a forward-thinking strategy. Organizations need to enhance their risk management practices, implement advanced technologies, and focus on strengthening internal controls. This section outlines essential strategies to help businesses minimize risks and maintain compliance.

• Conduct Regular and Robust Risk Assessments
  Regularly assess AML risks across different regions, products, and services to identify vulnerabilities. By understanding emerging threats, organizations can implement targeted controls to mitigate risks effectively.
• Strengthen CDD and EDD Protocols
  Enhance customer verification by automating KYC processes and conducting regular updates of customer profiles. For high-risk clients, apply enhanced due diligence (EDD) to ensure continued compliance.
• Deploy AI-Powered Transaction Monitoring Systems
  Utilize artificial intelligence and machine learning to improve transaction monitoring. Real-time detection of suspicious activity enhances response time and reduces the risk of non-compliance.
• Prioritize SAR/CTR Filing and Compliance
  Ensure timely and accurate submission of suspicious activity reports (SARs) and currency transaction reports (CTRs). Proper documentation and filing can help avoid regulatory scrutiny and penalties.
• Strengthen Internal Governance and Controls
  Foster a strong culture of compliance by appointing experienced compliance officers and providing regular training. Effective oversight and internal governance are critical for preventing AML breaches.

Strengthen AML Compliance with VComply

With VComply’s advanced compliance management features, organizations can:

• Automate AML compliance workflows
• Monitor suspicious activities in real-time
• Ensure timely and accurate SAR/CTR filings

This streamlined approach helps financial institutions, FinTechs, and other regulated entities stay ahead of compliance challenges and mitigate risks effectively.

VComply’s intuitive platform offers a centralized dashboard to track regulatory changes, assess high-risk areas, and strengthen internal controls. By automating compliance processes and ensuring accurate reporting, organizations can prevent costly penalties and build a culture of compliance.

Take the first step towards bolstering your AML compliance framework. Request a demo today and discover how VComply can help your organization avoid regulatory fines, maintain compliance, and safeguard its reputation.

Conclusion

As global regulators continue to tighten AML enforcement, businesses must be vigilant in their approach to compliance. The record-breaking fines of recent years underscore the importance of strengthening AML controls, enhancing due diligence processes, and implementing robust governance frameworks. Staying ahead of emerging risks, keeping pace with regulatory changes, and investing in advanced compliance technologies are essential for avoiding penalties and protecting organizational reputation.

Ready to strengthen your AML compliance strategy? Start your free trial with VComply today and equip your organization with the tools needed to mitigate risks, streamline compliance processes, and stay ahead of regulatory expectations.