In the present age, it is increasingly common to find many organizations, including industry titans, take near-fatal blows at the hands of non-compliance. Regulatory bodies around the world keep slapping fines and issuing notices to non-compliant companies. In 2020 alone, the largest non-compliance fine was paid by Wells Fargo, which was to the tune of $3 billion. Considering the financial consequences and likelihood of lasting reputational damage, staying compliant is of utmost priority for corporate boards.
Regulatory watchdogs around the world served stiff penalties in 2020, with major financial institutions being asked to own up for their deficiencies and malpractices. Citigroup faced a $400 million fine for risk management shortfalls, JP Morgan was charged $920 million for illicit market activity, Westpac agreed to a record fine of AUD 1.3 billion for anti-money laundering breaches, Goldman Sachs was fined $2.9 billion in connection with the 1MDB scandal, and Wells Fargo saw a huge $3 billion penalty for he fraudulent account fiasco.